Biohit Oyj Half Year Financial Report
SUMMARY
January-
- Revenue
EUR 6.5 million (EUR 6.1 million ) - Revenue increased by 6.2% compared to H1/2022
-
Operative EBITDA
EUR 1.8 million (EUR 1.7 million ) -
EBIT
EUR 1.5 million (EUR 1.3 million ) -
Cash at the end of the period
EUR 1.7 million (EUR 2.1 million 31 December 2022 ) -
Fair value of
Genetic Analysis AS investmentEUR 0.2 million (EUR 0.3 million 31 December 2022 ) - Revenue from international operations 98.4% (98.2%) of total revenue
-
Equity ratio 73.2% (68.3%
31 December 2022 )
BIOHIT GROUP
| 1-6/2023 | 1-6/2022 | 1-12/2022 |
Revenue (MEUR) | 6.5 | 6.1 | 11.0 |
EBITDA (MEUR) | 1.7 | 1.6 | 1.6 |
Operative EBITDA (MEUR) | 1.8 | 1.7 | 1.8 |
Operating profit/loss (MEUR) | 1.5 | 1.3 | 1.1 |
Profit/loss before taxes (MEUR) | 1.7 | 1.1 | 0.9 |
Profit/loss for the period (MEUR) | 1.4 | 0.9 | 0.6 |
Average number of personnel | 42 | 44 | 45 |
Number of personnel at the end of the period | 42 | 47 | 43 |
Equity ratio (%) | 73.2% | 70.7% | 68.3% |
Earnings per share (EUR), Undiluted | 0.09 | 0.06 | 0.04 |
Earnings per share (EUR), Diluted | 0.09 | 0.06 | 0.04 |
Shareholders' equity per share (EUR) | 0.59 | 0.52 | 0.50 |
Average number of shares during the period | 15,080,349 | 15,045,593 | 15,045,593 |
Number of shares at the end of the period | 15,113,593 | 15,045,593 | 15,045,593 |
CEO
PROFITABLE GROWTH
The early part of the year was in many ways even more encouraging than the figures suggest, as the vast majority of the Chinese deliveries in accordance with the
Sales through distributors increased by 22% from the reference period. The growth of the subsidiaries was even faster than this, with sales in
Sales are being boosted especially by quick tests, which are a significant product group. Their sales increased by 40% from the reference period.
The year 2022 marked a turning point for
As a company,
Even though we have focused heavily on sales, product development has not been forgotten either. It is the job of product development to ensure that sales, which have reached a good pace, will continue to have something to sell in the future as well. New versions are being developed of existing products and there are also completely new innovations in the pipeline.
We are receiving public support from the EU and Business Finland for two R&D projects. The total amount of grant funding is
The company's cash and cash equivalents amounted to
Finally, it should be mentioned that we have continued to invest in more active investor communication than before.
OUTLOOK FOR 2023
Revised guidance for 2023
We expect our revenue to be
More information of the risks can be found in the section Short-term risks and uncertainties.
The previous guidance for 2023, issued on
We expect our EBIT to increase in 2023 compared to 2022 (in 2022:
REPORTING
REVENUE AND RESULT
January-June
Consolidated revenue and operating income
| 1-6/2023 | 1-6/2022 | Change | 1-12/2022 |
Revenue MEUR | 6.5 | 6.1 | 0.4 | 11.0 |
Change compared with the previous year (%) | 6.2% | 50.9% |
| 17.0% |
Operating income MEUR | 1.5 | 1.3 | 0.2 | 1.1 |
Operating income | 23.2% | 22.1% |
| 10.3% |
REVENUE BY MARKET AREA
EUR million | 1-6/2023 | 1-6/2022 | 1-12/2022 |
0.1 | 0.1 | 0.2 | |
2.9 | 2.3 | 4.6 | |
0.2 | 0.1 | 0.3 | |
2.6 | 3.1 | 4.7 | |
Other countries | 0.7 | 0.5 | 1.1 |
Revenue from contracts with customers | 6.5 | 6.1 | 11.0 |
ALTERNATIVE PERFORMANCE MEASURES
Bridge calculation of operative EBITDA
EUR million | 1-6/2023 | 1-6/2022 | Change | 1-12/2022 |
Operating profit/loss | 1.5 | 1.3 | 0.2 | 1.1 |
Depreciation and amortization | 0.2 | 0.2 | -0.0 | 0.5 |
IFRS 2 share-based payments | 0.1 | 0.1 | -0.0 | 0.2 |
Operative EBITDA | 1.8 | 1.7 | 0.1 | 1.8 |
BALANCE SHEET, FINANCING AND OPERATIONAL CONTINUITY
On the
Our financial position has remained steady. On the
The company has managed to keep its working capital on a good level and the management believes that working capital and the company's other financial assets will cover the operations for the next 12 months. The company is not dependent on external financing to be able to guarantee the continuity of its operations. Cash flow from operating activities was
RESEARCH AND DEVELOPMENT AND CLINICAL STUDIES
R&D operations focus on innovations as well as product development and improved usability. Biohit also employs external experts and subcontractors in its R&D operations. Development costs of
A new version of the quick test of the GastroPanel® product family, GastroPanel® quick test NT, developed for the primary diagnosis of upper stomach problems and reflux symptoms, was introduced to the market. GastroPanel® quick test NT has improved usability and is suitable for analyzing fingertip and venous blood samples.
The clinical performance studies of the GastroPanel® rapid test based on lateral flow strip technology have been continued in the Asia-Pacific region in two different hospitals covering more than 400 test subjects. Regarding the fingertip blood test, the results still show more than 83% concordance with the result obtained based on the gastric examination and the test piece sample.
There have been no challenges in using the test, but based on end-user feedback, the test is easy to use, and its accuracy meets clinical requirements. More clinical trials are planned to be carried out in Europe.
In other respects, product development has continued with the preparation of product documentation in accordance with the new European Union IVD ((EU) 2017/746) and MD ((EU) 2017/745) regulations.
INVESTMENTS
Gross investments during the H1/2023 reporting period totaled
PERSONNEL
During the review period, the
SHORT-TERM RISKS AND UNCERTAINTIES
The company's most significant risks relate to the success of product development and to the registration of products.
Due to the nature of the industry, regulation can slow down sales growth. The product registration processes vary by market area, and taking over new markets can be slow.
Due to the EU's new IVDR regulations, the launch of new products will be slower than before on account of the bottlenecks built into the regulation (e.g. the notified body requirement and the very limited number of these bodies).
The sale of certain GastroPanel® products in China constitutes a significant individual account for the company. Otherwise, the company is not significantly dependent on individual customers or deliveries.
High dependence on China and the tense global political situation are risks. Sanctions and protectionist trade policies would harm companies that depend on exports.
High inflation is also a threat to Biohit's competitiveness.
The goal of the company's liquid asset investment activities is to achieve returns with a low risk of capital loss. The investment portfolio consists of deposits, investment funds and corporate bonds.
Central to risk management is the adequate diversification of investments between asset categories, investment instruments and counterparties. The company's investment portfolio is subject to equity risk, which is managed through diversification and allocation decisions. In addition, the investment portfolio is subject to interest rate risk, which is managed by adjusting the duration of the portfolio, if necessary. Furthermore, the potential instability of financial markets might negatively affect the value of investments.
The company's investment in the shares of the listed Norwegian company Genetic Analysis AS is subject to changes not only in the share value, but also in the EUR/NOK exchange rate.
The sales and balance sheet of Biohit's UK subsidiary are denominated in GBP, and so the weakening of the pound against the euro is a risk for the company. Otherwise, the company's business is mostly denominated in EUR, and the indirect effects of exchange rate fluctuations are not estimated to be of significant importance.
The prolongation of the war in Ukraine does not seem to have direct effects on the medical device market, but indirect effects, such as financial market turbulence, may have negative effects on the company's financial position.
Biohit Oyj's Remuneration Report for the Governing Bodies is published. The Remuneration Report for the Governing Bodies is available at https://www.biohithealthcare.com/en/investors/.
A total number of 68,000 new Biohit Plc B-shares have been subscribed for with stock options I 2021A and stock options I 2022A between
The Annual General Meeting (AGM) of Biohit Oyj held on
Distribution of dividends
With a unanimous decision of the shareholders participating in the AGM, the AGM resolved in accordance with the proposal of the Board of Directors that no dividend is paid for the financial period ended on
Members of the Board of Directors
The AGM resolved that five (5) members are elected to the Board of Directors and that CEO Liu Feng, CEO Kalle Härkönen, Ph.D. Lea Paloheimo, Ph.D (Jur.), LL.M. Vesa Silaskivi and professor Osmo Suovaniemi are elected as members of the Board of Directors until the end of the next AGM.
Additionally, the AGM resolved that the Chairman of the Board of Directors and the other members of the Board of Directors are paid a meeting fee of
Election of the Auditor and remuneration for the Auditor
With a unanimous decision of the shareholders participating in the AGM, the AGM elected authorized public accountants
Biohit Oyj's Board of Directors has in its meeting on
Silaskivi is an experienced board professional and thus a valuable contributor to the company's growth.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
There are no events to report after the close of the review period.
ADMINISTRATION
Biohit Oyj's Management Team
The members of Biohit's Management Team are: CEO Jussi Hahtela, CFO Jussi Sorvo, Production Director Suvi Elomaa, Research and Development Director Panu Hendolin, Sales and Marketing Director Ilari Patrakka and Quality and Regulatory Affairs Director Daniela Söderström.
SHARES AND SHAREHOLDERS
Biohit Oyj's number of shares is 15,113,593 (15,045,593) of which 2,975,500 (2,975,500) are Series A shares and 12,138,093 (12,070,093) are Series B shares. The Series B shares are quoted on NASDAQ Helsinki in the Small cap/Healthcare group under the code BIOBV.
BIOBV/NASDAQ OMX Helsinki | 1-6/2023 | 1-6/2022 | 1-12/2022 |
High (EUR) | 2.14 | 2.15 | 2.15 |
Low (EUR) | 1.57 | 1.08 | 1.05 |
Average (EUR) | 1.85 | 1.74 | 1.71 |
Latest (EUR) | 1.78 | 1.17 | 1.57 |
Turnover (EUR) | 2,609,006 | 2,704,393 | 6,398,774 |
Turnover volume | 1,408,151 | 1,553,678 | 3,751,374 |
Shareholders
At the end of the reporting period on
Further information on the shares, major shareholders and management shareholdings is available on the company's website.
ACCOUNTING PRINCIPLES
This half year financial release has been prepared in accordance with the requirements of the IAS 34 Interim Financial Reporting standard. Development costs were capitalized in the accounting period of
Biohit Oyj has applied the same accounting principles in preparing this half year financial report as for its financial statements 2022 except for aforementioned matter and IFRS standard changes and interpretations implemented in 2023. Changes in new IFRS standards and interpretations have no material impact in this half year financial report. The figures in the half-year financial report have not been audited.
In 2021 Biohit received funding for the development and launch of quick tests from the
Alternative performance measures and items affecting comparability:
Certain items that are not related to the underlying business or non-cash valuation items that have material effect on the profit and loss for the period are adjusted as items affecting comparability. These items can arise, for example from:
- Impairment of assets
- Sale or acquisition of asset or business
- Share based payment expenses in accordance with IFRS 2
Additionally, Biohit Oyj presents the following alternative performance measures:
EBITDA | EBIT + depreciation and amortization |
Operative EBITDA | EBIT + depreciation and amortization - items affecting comparability |
CONSOLIDATED INCOME STATEMENT
EUR million | 1-6/2023 | 1-6/2022 | Change | 1-12/2022 |
Revenue | 6.5 | 6.1 | 0.4 | 11.0 |
Change in inventories of finished goods and work in progress | 0.0 | -0.0 | 0.0 | -0.0 |
Other operating income | 0.1 | 0.1 | -0.0 | 0.3 |
Materials and services | -2.0 | -1.7 | -0.3 | -3.8 |
Employee benefit expenses | -1.8 | -1.9 | 0.2 | -3.6 |
Other operating expenses | -1.2 | -1.0 | -0.1 | -2.2 |
EBITDA | 1.7 | 1.6 | 0.1 | 1.6 |
Depreciation and amortization | -0.2 | -0.2 | 0.0 | -0.5 |
Operating profit/loss | 1.5 | 1.3 | 0.2 | 1.1 |
Financial income | 0.4 | -0.0 | 0.4 | 0.1 |
Financial expenses | -0.2 | -0.2 | 0.0 | -0.4 |
Profit/loss before taxes | 1.7 | 1.1 | 0.6 | 0.9 |
Income taxes | -0.3 | -0.2 | -0.1 | -0.3 |
Profit/loss for the financial period | 1.4 | 0.9 | 0.5 | 0.6 |
Items of comprehensive income that may later be reclassified through profit or loss |
|
|
|
|
Translation differences | 0.0 | -0.0 | 0.0 | -0.0 |
Items that will not be reclassified to profit or loss |
|
|
|
|
Changes in the fair value of equity investments at fair value through other comprehensive income | -0.1 | -0.5 | 0.4 | -0.6 |
Other comprehensive income total | -0.1 | -0.5 | 0.4 | -0.6 |
Comprehensive income for the period | 1.3 | 0.4 | 0.9 | -0.0 |
Earnings per share calculated from earnings attributable to the owners of the parent company
| 1-6/2023 | 1-6/2022 | 1-12/2022 |
Undiluted earnings per share, (EUR) | 0.09 | 0.06 | 0.04 |
Diluted earnings per share, (EUR) | 0.09 | 0.06 | 0.04 |
CONSOLIDATED BALANCE SHEET
EUR million | |||
ASSETS |
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|
|
NON-CURRENT ASSETS |
|
|
|
Intangible assets | 0.1 | 0.1 | 0.0 |
Property, plant and equipment | 0.1 | 0.2 | 0.1 |
Right-of-use assets | 0.7 | 1.0 | 0.9 |
Other financial long-term assets | 0.1 | 0.1 | 0.1 |
Deferred tax assets | 0.0 | 0.0 | 0.0 |
Total non-current assets | 1.1 | 1.3 | 1.1 |
|
|
|
|
CURRENT ASSETS |
|
|
|
Inventories | 0.7 | 0.8 | 0.9 |
Trade and other receivables | 5.1 | 3.5 | 2.8 |
Other current financial assets | 3.9 | 4.2 | 4.1 |
Cash and cash equivalents | 1.7 | 1.6 | 2.1 |
Total current assets | 11.4 | 10.1 | 9.9 |
|
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|
|
TOTAL ASSETS | 12.5 | 11.4 | 11.0 |
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SHAREHOLDERS' EQUITY AND LIABILITIES |
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Shareholders' equity attributable to the owners of the parent company |
|
|
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Share capital | 2.4 | 2.4 | 2.4 |
Fair value reserve | -1.8 | -1.6 | -1.7 |
Invested unrestricted equity fund | 5.2 | 5.1 | 5.1 |
Translation differences | -0.1 | -0.1 | -0.1 |
Retained earnings | 3.3 | 2.0 | 1.8 |
Total shareholders' equity | 9.0 | 7.9 | 7.5 |
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NON-CURRENT LIABILITIES |
|
|
|
Lease liabilities | 0.5 | 0.8 | 0.7 |
Deferred tax liabilities | 0.0 | 0.0 | 0.0 |
Other liabilities | 0.0 | 0.0 | 0.0 |
Total non-current liabilities | 0.6 | 0.8 | 0.7 |
|
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CURRENT LIABILITIES |
|
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Trade payables | 0.6 | 0.5 | 0.7 |
Tax liabilities | 0.4 | 0.2 | 0.1 |
Lease liabilities | 0.3 | 0.3 | 0.3 |
Other liabilities | 1.7 | 1.8 | 1.8 |
Total current liabilities | 3.0 | 2.8 | 2.9 |
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Total liabilities | 3.5 | 3.6 | 3.6 |
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TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 12.5 | 11.4 | 11.0 |
INTANGIBLE ASSETS
Statement of changes in intangible assets on
EUR million | Capitalized development costs | Other Intangible Assets | Total |
|
|
|
|
Acquisition cost |
| 1.9 | 1.9 |
Increases | 0.1 |
| 0.1 |
Acquisition cost | 0.1 | 1.9 | 2.0 |
|
|
|
|
Accumulated depreciation and impairment |
| -1.9 | -1.9 |
Depreciation | -0.0 | -0.0 | -0.0 |
Accumulated depreciation and impairment | -0.0 | -1.9 | -1.9 |
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Book value | 0.0 | 0.0 | 0.0 |
Book value | 0.1 | 0.0 | 0.1 |
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Statement of changes in intangible assets on
EUR million | Capitalized development costs | Other Intangible Assets | Total |
|
|
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|
Acquisition cost |
| 1.9 | 1.9 |
Increases |
| 0.0 | 0.0 |
Acquisition cost |
| 1.9 | 1.9 |
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|
|
Accumulated depreciation and impairment |
| -1.8 | -1.8 |
Depreciation |
| -0.1 | -0.1 |
Accumulated depreciation and impairment |
| -1.9 | -1.9 |
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Book value |
| 0.1 | 0.1 |
Book value |
| 0.0 | 0.0 |
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STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Statement of changes in consolidated shareholders' equity on
EUR million | Share capital | Invested unrestricted equity fund | Translation differences | Fair value reserve | Retained earnings | Shareholders' equity |
Shareholders' equity | 2.4 | 5.1 | -0.1 | -1.7 | 1.8 | 7.5 |
Share based payments |
|
|
|
| 0.1 | 0.1 |
Exercise of share options |
| 0.1 |
|
|
| 0.1 |
Adjustment of translation differences |
|
|
|
| 0.0 | 0.0 |
Total comprehensive income for the period |
|
| 0.0 | -0.1 | 1.4 | 1.3 |
Shareholders' equity | 2.4 | 5.2 | -0.1 | -1.8 | 3.3 | 9.0 |
Statement of changes in consolidated shareholders' equity on
EUR million | Share capital | Invested unrestricted equity fund | Translation differences | Fair value reserve | Retained earnings | Shareholders' equity |
Shareholders' equity | 2.4 | 5.1 | -0.1 | -1.1 | 1.0 | 7.3 |
Share based payments |
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|
| 0.1 | 0.1 |
Adjustment of translation differences |
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|
| 0.0 | 0.0 |
Total comprehensive income for the period |
|
| 0.0 | -0.5 | 0.9 | 0.4 |
Shareholders' equity | 2.4 | 5.1 | -0.1 | -1.6 | 2.0 | 7.9 |
FINANCIAL ASSETS MEASURED AT FAIR VALUE
FINANCIAL ASSETS MEASURED AT FAIR VALUE
The company has classified the hierarchies of financial assets according to the availability of data on market terms and other price data. The fair values on level 1 of the hierarchy are based on the quoted (unadjusted) prices of identical assets or liabilities on active markets. The group has mainly used valuations provided by its asset management partner as a source of price data for determining the fair value of these instruments. The company has verified that the price data represents genuine, frequent market transactions involving the instruments in question. In significant part, the fair values of level 2 instruments are based on other input data than the quoted prices included in level 1, although this data can be obtained for the assets or liabilities in question either directly (as a price) or indirectly (as a derivative of the price). The Group uses generally accepted valuation models to determine the fair values of these instruments and the input data for these models are based in significant part on observable market data. The level in the fair value hierarchy at which a certain item measured at fair value is classified overall based on the significant input data on the lowest level with regard to the entire item measured at fair value. The significance of input data is evaluated in its entirety in relation to the item valued at fair value. The original book value of other receivables corresponds to their fair value because the effect of discounting is negligible in view of the maturity of the receivables.
CASH FLOW STATEMENT
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RELATED PARTY TRANSACTIONS
Biohit Oyj sold
COLLATERAL, CONTINGENT LIABILITIES, AND OTHER COMMITMENTS
EUR million | |||
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Collateral granted on behalf of the parent company |
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Guarantees | 0.0 | 0.0 | 0.0 |
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Collateral and contingent liabilities total | 0.0 | 0.0 | 0.0 |
NEXT FINANCIAL REPORT AND 2024 FINANCIAL REPORTING
Biohit will publish a schedule for 2024 financial reporting and Annual General Meeting later this year.
Helsinki
Biohit Oyj
Board of Directors
Additional information:
CEO Jussi Hahtela
tel. +358 9 773 861
investor.relations@biohit.fi
www.biohithealthcare.com
Biohit Oyj in brief
Biohit is a globally operating Finnish biotechnology company. Biohit's mission is "Innovating for Health" - we produce innovative products and services to promote research and early diagnosis. Biohit is headquartered in Helsinki, Finland, and has subsidiaries in Italy and the UK. Biohit Series B share (BIOBV) is quoted on Nasdaq Helsinki in the Small cap/Healthcare group. www.biohithealthcare.com
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