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Boule Diagnostics AB (publ) Interim report January – September 2017

Strong quarter with good margins 

Quarter July–September 2017

  • Net sales amounted to SEK 109.7 million (108.5), up 1.1 percent. Adjusted for the change in exchange rates, this corresponds to an increase of 2.6 percent.
  • Number of instruments sold in the quarter was 1,116 (1,071), an increase of 4 percent.
  • Cash flow from operating activities amounted to SEK 10.1 million (12.7).
  • Operating profit was SEK 28.2 million (24.8) which corresponds to an operating margin of 25.7 percent (22.9).
  • Net profit amounted to SEK 21.6 million (19.3).
  • Earnings per share before dilution amounted to SEK 4.51 (4.11) and after dilution to SEK 4.48 (4.02).

Interim period January-September 2017

  • Net sales amounted to SEK 320.5 million (294.9), up 8.7 percent. Adjusted for the change in exchange rates, this corresponds to an increase of 6.9 percent.
  • Number of instruments sold in the period was 3,255 (2,761), an increase of 18 percent.
  • Cash flow from operating activities amounted to SEK 33.6 million (8.0).
  • Operating profit, including efficiency improvements and non-recurring costs was SEK 39.5 million (45.8) which corresponds to an operating margin of 12.3 percent (15.5).
  • Net profit amounted to SEK 29.2 million (34.6).
  • Earnings per share before dilution amounted to SEK 6.09 (7.34) and after dilution to SEK 6.04 (7.19).

Significant events during the quarter

Strategic agreements to strengthen and expand the product portfolio

In quarter four 2017, Boule will commence sales and distribution of a CRP product from Orion Diagnostica Oy via Boule’s own sales organization in Mexico.

Boule has signed a global distribution agreement with CellaVision for their newly developed product for smaller and medium size laboratories. Sales start is planned for 2018.

Boule has also signed a global agreement for the sale of a clinical chemistry product for veterinary applications. The product is a strong complement to the company's own hematology products, and sales start is planned for the first quarter of 2018. 

Non-recurring items

The quarterly result has been positively affected by SEK 4.5 million for reversed provisions relating to employee bonus and option programs as well as the shutdown of the Chinese production facility.

Significant events after the quarter

New CFO

Christina Rubenhag joined Boule as CFO on 9 October. She succeeds Fredrik Alpsten who had previously announced that he will leave Boule to take up a position at another company.

Agreement on local production in Russia

To boost growth and profitability and strengthen our local presence in Russia, one of the company's largest markets, Boule has signed an agreement to start local production of reagents. Local production will be set up in collaboration with a local partner. Sales to customers are expected to start in 2018. 

Major tender won in Mexico 

In late October, Boule, in partnership with one of its Mexican distributors, won a public tender for hematology systems. The initial value of the order is estimated to SEK 3 million and includes instruments, reagents and controls. Product shipments will start in the fourth quarter of 2017.

Comments from CEO Fredrik Dalborg

”The third quarter 2017 was a solid one for Boule. Sales developed well and growth continued, even in comparison with the record third quarter of 2016. In the second quarter 2017 the gross margin declined because of the geographic revenue mix and the EBIT margin also declined due to one-off costs related to activities to increase future efficiency and profitability. In light of this it is great to see the record profitability in the third quarter, with a gross margin at 51.8% and EBIT margin at 25.7%.

Revenue growth continued in the third quarter of 2017, and at SEK 109.7 million a new record for quarterly sales was established. In September, thanks to strong efforts from the Sales, Order and Production departments, a new record for monthly instrument shipments was set at 592 units. During the full quarter 1,116 instruments were sold, an increase of 4%.

Significant progress was made during the quarter to strengthen and develop the company for the future in line with established priorities. Among other things, multiple distribution agreements have been signed in order to strengthen our product portfolio. Boule will also strengthen the position in the important Russian market by starting up local manufacturing of reagents.

As previously communicated, Boule’s priorities are:

  1.    Further measures to support and strengthen the company's sales and profitability growth,
  2.    To continue to improve current products and develop new ones,
  3.    To strengthen and expand our product portfolio via distribution agreements, OEM contracts and possible acquisitions.”

For further information, please contact:
Fredrik Dalborg, CEO and Group President, Boule Diagnostics AB, tel +46 705-58 51 05

Christina Rubenhag, CFO, Boule Diagnostics AB, phone +46 705-46 72 22

About Boule Diagnostics AB (publ)
Boule Diagnostics AB is a rapidly growing global diagnostics company that develops, manufactures and markets instruments and consumable products for blood diagnostics. The company serves hospitals, clinics, laboratories and companies within blood diagnostics, in both human and veterinary hematology. The company operates via subsidiaries in Sweden and the USA. The company products are sold globally primarily through distributors, supported by Boule’s own local sales and support personnel. The Boule shares are listed on Nasdaq Stockholm since 2011. www.boule.com 

This information is information that Boule Diagnostics AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.45 CET on November 8, 2017.