Novolog (NVLG) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 9% YoY to ₪1,643.5m, while adjusted EBITDA declined; Q4 revenue grew 3.4% but adjusted EBITDA fell and operating results turned to a loss.

• Q4 included ₪41m of impairment charges on healthcare-services subsidiaries and ~₪7m of one-time healthcare-segment expenses.

• Operations span healthcare logistics, healthcare services and digital health, serving institutional and private clients.

Financial highlights

• FY23, including IFRS 16: revenue ₪1,643.5m, up 9%; gross profit ₪169.2m, down 3.6%; operating income ₪2.7m vs ₪78.1m.

• FY23, including IFRS 16: net loss ₪39.4m vs net income ₪50.9m; adjusted EBITDA ₪113.4m, down 16.9%.

• FY23, excluding IFRS 16: operating loss ₪3.2m vs income ₪74.1m; net loss ₪36.9m vs income ₪54.1m; adjusted EBITDA ₪84.9m, down 24.5%.

• Q4, including IFRS 16: revenue ₪396.5m, up 3.4%; gross profit ₪38.5m, down 19.9%; operating loss ₪36.4m vs income ₪21.2m; adjusted EBITDA ₪22.3m, down 38.5%.

• Q4, excluding IFRS 16: net loss ₪42.0m vs income ₪15.6m; adjusted EBITDA ₪14.2m, down 52.1%.

Outlook and guidance

• A review of the business strategy and related objectives for the coming years began in 2024.

• Long-term priorities include organic-growth initiatives, acquisitions aligned with strategy, and investment in processes to expand profit.