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Boule Diagnostics AB (publ) Interim report January – June 2018

Continued strong profitability improvements and good growth 

Quarter April–June 2018

  •  Net sales amounted to SEK 107.8 million (104.3), up 3.4 percent. Adjusted for the change in exchange rates, this corresponds to an increase of 3.0 percent.
  •  Number of instruments sold in the quarter was 962 (998), a decrease of 4 percent.
  •  Cash flow from operating activities amounted to SEK 10.0 million (5.0).
  •  Operating profit was SEK 19.8 million (-0.7) which corresponds to an operating margin of 18.4 percent (-0.7).
  •  Net profit amounted to SEK 14.9 million (-1.1).
  •  Earnings per share before dilution amounted to SEK 0.77 (-0.06) and after dilution to SEK 0.77 (-0.06).

Interim period January–June 2018

  •  Net sales amounted to SEK 207.3 million (210.9), a decrease of 1.7 percent. Adjusted for the change in exchange rates, this corresponds to an increase of 0.3 percent.
  •  Number of instruments sold in the quarter was 1,902 (2,141), a decrease of 11 percent.
  •  Cash flow from operating activities amounted to SEK 16.7 million (23.5).
  •  Operating profit was SEK 38.7 million (11.2) which corresponds to an operating margin of 18.7 percent (5.3).
  •  Net profit amounted to SEK 29.9 million (7.5).
  •  Earnings per share before dilution amounted to SEK 1.54 (0.40) and after dilution to SEK 1.54 (0.39).

Significant events during the quarter

Boule acquires technologies for the next generation product platform

In April, Boule acquired new technologies in the field of laser optics that will be adapted to Boule’s requirements and be used in combination with internally developed technologies for the next generation product platform. The acquisition will reduce time to market for the next product launch in the fast growing 5-part segment, and simultaneously reduce development cost and risk.

New products released for sale in the veterinary market

Exigo H400, a hematology system with twelve pre-installed animal profiles, was launched in April. The Exigo C200, a fully automated chemistry analyzer for veterinary diagnostics, was launched in June. The increased product portfolio strengthens Boule’s competitiveness in the veterinary market.

Significant events after the quarter

Boule secured major tender in India

A major tender has been secured in India, including a large number of instruments, associated reagents and controls. This complex tender process has been ongoing for an extended period of time and has been brought to a successful conclusion for Boule by the local country manager in close collaboration with one of the company’s key distributors. Deliveries of 650 instruments are expected to take place during the third and fourth quarter of 2018.

Winning this tender further strenghtens Boule’s position in the Indian market and can lead to further sales of instruments in addition to the ongoing reagent and control sales supporting the installed instruments.

Comments from CEO Fredrik Dalborg

” In the second quarter Boule showed good growth globally. Instrument revenues are increasing again, and reagent revenues are growing strongly at 16%. The sales of consumables for open systems (CDS-brand) declined in line with market trends, and OEM sales were lower than expected due to an uneven order pattern that is expected to balance out over time. Adjusted for the sales of CDS-brand and OEM, the sales of Boule's own systems increased by 10% globally during the quarter compared to the previous year and adjusted for changes in currency exchange rates, sales in the US increased by 13%. The second quarter was another quarter without any major tenders, resulting in a decrease in the number of instruments shipped, but with higher average selling prices for the delivered instruments. The sales from instruments increased by 48% in the US market.

In April, the new veterinary hematology system H400 reached the market and customer responses have been positive. In June, the sales of Exigo C200, a fully automated chemistry analyzer for the veterinary market, started. The two systems have integrated software and customers will use them in combination. These two systems together will strengthen Boule’s product portfolio in the veterinary market and offers opportunities to develop the distribution network.

After the quarter a major tender was secured in India. The deliveries of 650 instruments will occur in the third and fourth quarter of 2018 and will therefore claim a significant share of the current production capacity. Due to the size of the tender the instruments’ selling price is relatively low, while reagent sales per instrument are expected to be above average in the Indian market. During the third quarter increased production capacity is being prepared. In addition to the future deliveries of consumables, this tender may also lead to sales of additional instruments.

The development of the next generation system platform is continuing with high priority. Research and development resources in both Sweden and the US have been strengthened to secure a rapid and efficient development process.

To support both a continued strong growth in different geographic markets as well as an efficient commercialization of a broader product portfolio, the commercial organization is being strengthened.

In addition, the team will be working on additional growth initiatives in line with the established strategies.”

THE INTERIM REPORT FOR JANUARY-JUNE 2018 IN ITS ENTERITY IS FOUND BELOW.

For further information, please contact:
Fredrik Dalborg, CEO and Group President, Boule Diagnostics AB, phone +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 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, the USA and Mexico. 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 and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above at 15:00 CET on August 15, 2018.