HBC generated gross operating revenue of NOK 80.4 million (76.4 million) in the second quarter and NOK 132.8 million (121.2 million) in the half year. Adjusted for asset sales in the second quarter, sales revenue for the quarter was NOK 72.2 million (50.7 million), an increase of 42 percent compared to the same quarter in 2023.
Cash and cash equivalents increased by NOK 3.1 million during the quarter, bringing the total to NOK 25.3 million at the end of June, compared to NOK 22.4 million at the end of March. Including credit facilities, HBC had NOK 26.7 million in free liquidity at the end of June.
Jon Olav Ødegård, CEO of HBC, says: “I am pleased that the significant sales growth in the second quarter demonstrates the increasing value our customers see in our premium products. HBC continues its mission of science-based marine nutrition and delivers another leading pharmaceutical candidate to our US subsidiary. In summary, as at the beginning of 2024, HBC is aiming for sales growth of around 50%, higher capacity utilization and positive EBITDA at the end of the year.”
Highlights in the second quarter
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HBC reported a new record sales of NOK 72.2 million in the second quarter, up 42 percent from NOK 50.7 million in the second quarter of 2023, excluding asset sales in both quarters. Sales increased by 39 percent compared to the first quarter of 2024. The increase is proof that we are gaining a foothold in important markets and are able to turn the raw material into products that are valued by our customers. It is worth mentioning the growing interest in our premium pet products, both the functional ingredients and the flavor enhancers.
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Production volumes were also high during the quarter, increasing 9 percent from Q1 to Q2 and 31 percent higher than in Q2 of the previous year. During the quarter, HBC received deliveries from new raw material suppliers.
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Gross margin in the second quarter was 34 percent, lower than in the first quarter and reflecting the change in the mix of products sold. Cash flow from operating activities was positive.
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In April, our laboratory in Midsund was accredited according to ISO 17025, allowing HBC to perform most of its microbiological analyses itself.
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In June, the company made a profit of 8.2 million krone from the second sale of assets, patents, to its US-registered partner company HBC Immunology Llc. (HBCI). The latest spin-off concerns the eosinophil-targeting drug candidate MA-022a. Eosinophils are immune cells that become overactive in allergic and hypersensitivity conditions, including allergic asthma. HBC holds a 72% stake in HBCI.
No significant events occurred after the quarter.
HBC’s financial report for the second quarter and first half of 2024 can be found in the appendix.
For further information please contact:
Christel Elise Kanli, CFO of Hofseth BioCare ASA
Phone: +47 41623188
Email: [email protected]
About Hofseth BioCare ASA:
HBC is a Norwegian supplier of ingredients for consumer and animal health and an incubator for new pharmaceutical active ingredients. Research is currently underway to identify the individual elements in the ingredients that modulate inflammation and the immune response. Preclinical studies are currently underway in several clinics and university research laboratories. The lead clinical and preclinical candidates are focused on developing an oral treatment for inflammatory diseases caused by eosinophils (a type of white blood cell). Clinical trials are currently underway using the oil to reduce lung inflammation in eosinophilic asthma and COPD (“smoker’s lung”).
Other approaches focus on using the company’s bioactive peptides as a medical food to protect the gastrointestinal (GI) tract from inflammation (including ulcerative colitis and the rare disease necrotizing enterocolitis). The company is founded on the core values of sustainability, optimal use of natural resources and full traceability. Through innovative and patent-protected hydrolysis technology, HBC is able to preserve the quality of the lipids, proteins and calcium from fresh salmon waste.
HBC is headquartered in Ålesund, Norway, with offices in Oslo, London, Zurich, New Jersey and Palo Alto, California.
This information is subject to the disclosure requirements under sections 5-12 of the Norwegian Securities Trading Act
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