Financial Reports

Wed, 18 May 2016

INTERIM REPORT JANUARY - MARCH 2016

JANUARY – MARCH 2016

- Net sales amounted to SEK 79.3 (70.8) million
- EBITDA was SEK 5.2 (3.7) million
- Basic earnings per share were SEK -0.02 (-0.06)

SIGNIFICANT EVENTS

Increase in net sales and gross profit
- Net sales increased by 12% to SEK 79.3 million
- Gross profit increased by 17% to SEK 38.4 million

Positive EBITDA of SEK 5.2 million for the period
- Continued sales growth with a healthy gross margin
- Higher volumes provide economies of scale

Future outlook 2016
- Maintained net sales
- Positive EBITDA

OPERATIONS

Sales and profitability continued to increase in the first quarter
Sales continued to grow during the first quarter of the year and the company has recorded its highest quarterly sales to date for the first three months of the year. The increase has exceeded expectations and it is partly attributable to direct sales to customers, which were delivered ahead of schedule. The rate of growth, however, has as expected, slowed compared to last year. First quarter 2016, net sales increased by 12% to SEK 79.3 (70.8) million, of which SEK 19.4 (23.0) million in the Nordic region, SEK 30.5 (25.4) million for Northern Europe, SEK 24.3 (19.3) million for Southern Europe and SEK 5.1 (3.1) million in Rest of World. The increase in sales is primarily attributable to countries outside the Nordic region.

The increase in sales is also associated with an improvement in gross margin. For the first quarter of 2016, gross profit increased by 17% to SEK 38.4 (32.9) million compared to the same period last year, which, together with higher economies of scale, has resulted in positive EBITDA of SEK 5.2 (3.7) million. 

Optimization of the product portfolio
The registration procedures for the company’s two products developed in-house are progressing on schedule, with expected launches in several of Bluefish’s most important market during the latter part of 2016 and 2017.

In the first quarter, Bluefish signed its first outlicensing agreement pertaining to one of the two products now in the registration phase, that have been developed in-house. Product outlicensing provides the company with opportunities to create sales in markets where Bluefish does not have its own operations. Launch of the product is expected sometime during the 18-24 months subsequent to signing the agreement, since the product must first become registered and approved.

The composition of the product portfolio in each market is critical to the company’s future growth and profitability. The expected earnings potential of products is also continually evaluated. Thus, the company continued investing in new product licenses and development projects. Investments are made selectively and only in the markets where Bluefish feels there is high potential in terms of both sales and profitability. During the first quarter, the product portfolio grew with the addition of one licensed product. Current products that are now in the registration phase are expected to be launched starting at the end of 2016, through to 2018.  

FUTURE OUTLOOK
The growth in sales and improved profitability in 2015 has created a strong platform for the company’s continued development. The company expects both sales and profitability to stabilize in 2016 at comparable levels to 2015, even though fluctuations will likely occur between quarters. New product launches during the latter part of 2016 and 2017 are expected to refuel sales growth, along with having a positive impact on profitability over time.

For more information, contact

Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: karl.karlsson@bluefishpharma.com

Susanna Urdmark, CFO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: susanna.urdmark@bluefishpharma.com

About Bluefish Pharmaceuticals
Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of approximately 80 products and is growing.

www.bluefishpharma.com

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