SenzaGen (SENZA) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw net sales of SEK 13.7 million, down 5% year-over-year, with currency-adjusted sales flat and strong activity in sales pipeline and R&D despite market turbulence.

• EBITDA was SEK -1.3 million, impacted by adverse FX and longer customer decision cycles.

• Guard, the core business, achieved 3% sales growth and added 10 new customers, including four major international companies.

• VitroScreen segment maintained Q4 sales levels, with a significantly higher order book entering Q2, indicating recovery and operational improvement after leadership changes.

• Strong interest in non-animal test methods, with new orders and expanded regulatory portfolio positioning for H2 2025 growth.

Financial highlights

• Net sales: SEK 13.7 million (Q1 2024: SEK 14.3 million); group sales decreased 5% year-over-year, mainly due to currency effects and delayed large project decisions.

• Gross margin remained strong at 75%, unchanged year-over-year and up from 67% for full-year 2024.

• EBITDA for Q1 was SEK -1.3 million on sales of SEK 13.7 million; break-even expected at around SEK 15 million in sales.

• Cash and cash equivalents at quarter-end were SEK 34.7 million, supporting ongoing operations and growth initiatives.

• Net cash from operating activities improved to SEK -3.2 million (Q1 2024: -5.9 million).

Outlook and guidance

• Expectation of higher growth in H2 2025, supported by a robust sales pipeline, increased high-value offers, and regulatory trends favoring non-animal testing.

• Anticipated regulatory approvals (OECD and ISO) for new and existing tests could positively impact sales in the near and medium term.

• FDA's move to phase out animal testing in pharma seen as a long-term commercial opportunity.

• Continued investment in R&D, commercial expansion, and test portfolio development, especially for VitroScreen.