Promimic (PRO) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales of 12.0 MSEK, up 13% year-over-year, with rolling 12-month growth at 48%.

• Four new customer products with HAnano Surface approved for clinical use; new license agreement signed with a US spine implant company.

• Expansion in the US delayed by six months due to a partner facility fire, but no impact on sales expected.

• Growth driven by both dental and orthopedic implant markets, with strong customer milestones and new product launches.

Financial highlights

• Q2 net sales: 12.0 MSEK (10.6), up 13% year-over-year; total operating income: 12.9 MSEK (11.2), up 15%.

• Q2 operating result: -2.3 MSEK (-1.4); net result after tax: -2.5 MSEK (-1.5); EPS: -0.14 SEK (-0.08).

• Cash flow for Q2: -8.6 MSEK (-4.9); cash at period end: 38.0 MSEK (55.1); equity ratio: 87% (88%).

• H1 net sales: 20.7 MSEK (16.8), up 23%; H1 operating result: -6.0 MSEK (-4.7); H1 net result: -6.0 MSEK (-4.8).

• Royalty and license income (rolling 4 quarters): 17.1 MSEK (11.5), up 48%.

Outlook and guidance

• Continued strong growth expected, supported by new product approvals and license agreements.

• New low-temperature surface modification method to be commercialized in H2 2024, broadening customer offering.

• US expansion on track despite temporary delay; sales not expected to be affected.

• Financial target: 100 MSEK revenue and EBITDA margin above 40% by 2026.