Navamedic (NAVA) Q3 2024 earnings summary

Executive summary

• Revenue YTD Q3 2024 reached NOK 400.2 million, up 3.5% year-over-year, driven by growth in Hospital and Consumer Health segments and licensing agreements.

• Q3 2024 revenue was NOK 123.1 million, down 12.7% compared to Q3 2023, reflecting the cyclical nature of the business.

• Underlying business remains strong, with Consumer Health and Hospital segments delivering double-digit growth year-over-year.

• Continued operational progress on a scalable platform, with ambitions to reach NOK 1 billion in revenue through organic growth and M&A.

• Significant Nordic antibiotic tender win positions the company as a main supplier to hospitals in Denmark, Iceland, and Norway from April 2025.

Financial highlights

• Q3 2024 gross margin was 37.1%, down from 37.6% in Q3 2023; YTD gross margin improved to 41.1% from 39.7% YTD 2023.

• Adjusted EBITDA for Q3 2024 was NOK 8.6 million (vs. NOK 17.4 million in Q3 2023); YTD adjusted EBITDA was NOK 49.8 million (vs. NOK 43.6 million YTD 2023).

• EBIT for Q3 2024 was NOK 4.7 million, down from NOK 12.7 million in Q3 2023.

• Net profit for Q3 2024 was NOK 2.7 million; profit before tax was NOK 3.0 million.

• Cash at period end was NOK 46.5 million, with net cash flow from operations of NOK 29.1 million in Q3 2024.

Outlook and guidance

• Management emphasizes growth as a primary focus, particularly for My Simba sales.

• No specific timeline provided for achieving consistent cash flow or initiating dividend payments.

• Ambition to build a NOK 1 billion revenue company through profitable growth and M&A.

• Exploring further market expansion and out-licensing opportunities for key products.

• Dividend policy for the future remains undetermined, pending cash flow improvements.