SenzaGen (SENZA) Q3 2024 earnings summary

Executive summary

• Achieved 31% year-on-year sales growth in Q3 2024, with net sales reaching SEK 13.2 million, and EBITDA improving due to increased demand and cost controls.

• GARD® core business posted 54% sales growth, driven by large customer orders and a growing customer base, with 81% of sales from returning customers.

• For the first nine months, consolidated sales rose 25% and EBITDA improved by 60% compared to 2023, with gross margin up to 71% from 68%.

• Expanded US market presence through a license agreement with IIVS and secured significant new orders, including SEK 4.5 million from RIFM.

• Innovation initiatives included new product development and a published article with L'Oréal, supporting OECD approval efforts for GARDⓇskin Dose-Response.

Financial highlights

• Q3 2024 net sales: SEK 13.2 (10.1) million; EBITDA: SEK -1.2 (-2.3) million; EPS: SEK -0.08 (-0.20).

• Jan–Sep 2024 net sales: SEK 42.2 (33.7) million; EBITDA: SEK -3.7 (-9.1) million; EPS: SEK -0.50 (-0.71).

• Gross margin improved to 67% in Q3 and 71% for Jan–Sep, up from 66% and 68% respectively.

• Cash and cash equivalents at period end: SEK 42.6 (19.7) million.

• Total net cash flow for Jan–Sep: SEK 25.0 (-20.4) million, supported by a new share issue.

Outlook and guidance

• Management anticipates continued strong performance, focusing on sales growth, innovation, and customer relationships.

• Demand for GARD® remains robust across chemicals, cosmetics, and is rising in pharmaceuticals and medical devices.