Bio-Works Technologies

The third quarter in review
(Jul-Sep 2024)

• Net sales increased 44% to 9,8 (6,8) MSEK. Sales in region Asia represented more than half our sales during the third quarter with deliveries of bio-therapeutics products to India. North America has not met our expectations in the quarter.
• The order intake amounted to 3,1 (1,9) MSEK, an increase of 63%. The third quarter is historically a weak quarter. Production order from Swedish CDMO contributed to the improved order intake for the quarter.
• Net profit for the quarter was -5,3 (-14,7) MSEK. The improvement can be explained by the cost reduction program and improved gross margins.
• Earnings per share in the third quarter amounted to -0,12 (-0,42) SEK – before and after dilution.
• Cash flow from operating activities amounted to -6,6 (-16,9) MSEK.
• Cash flow from financing activities amounted to +37,8 (-0,1) MSEK. The rights issue (after costs related to the emission) was 37,8 MSEK, transferred to our bank account in September.
• Cash and cash equivalents at the end of the period were 47,9 (25,8) MSEK and 39,4 MSEK 31. of December 2023.

Message from the CEO

This period of 2024 has been one of hard work to drive Bio-Works recovery after a challenging time. As one of my colleagues put it, "We’ve cleared the obstacles from our path, but there’s still work ahead to ensure we stay on track for long-term success." This statement truly captures the spirit of our team – we are determined, focused, and continuously moving forward.

Although we have not yet realized the company’s full potential, I would like to share some positive developments during the last quarter.   Our financial performance has exceeded expectations, and we have been maintained strict control over costs. Our expenses came in below the planned levels, and our burn-rate was lower than projected. These results are a testament to our team’s dedication to operational efficiency and prudent financial management, both of which remain central to our strategy for sustainable growth. In addition, we’ve experienced an encouraging increase in customer orders, which is encouraging following modest levels of 2023.

Following the successful completion of our rights issue, our financial position has strengthened, and cash balances are at healthier levels. In addition, we’ve made great strides with our U.S. sales team, and we’re now fully operational in this important market. We expect order intake to continue growing in the coming months.

Looking ahead, I remain optimistic about our growth prospects. We will increase sales activities further and deliver a solid improvement as we move towards the close of 2024 and transition into 2025. The groundwork we have laid since this summer puts us in a strong position to capitalize on the opportunities ahead. Our team’s hard work, resilience, and adaptability have been key to our progress, and I believe we are well-prepared for the challenges and opportunities that lie ahead.

As always, your continued trust and support are greatly appreciated. We are committed to delivering value and building a strong, sustainable future for Bio-Works.
  
Sincerely,

Lone Carlbom
CEO Bio-Works Technologies