- Significantly improved results
- Continuous very positive development in core business Medical Consumer
- Improved results but declining sales in business unit Lifestyle Consumer
GROUP
2022 FIRST QUARTER (jan-mar)
- Net sales of products SEK 8 874 (8 908) thousand
- Gross profit SEK 4 869 (5 596) thousand, 55% (63%)
- Operating loss SEK -6 654 (-10 875) thousand
- Loss per share -0,008 (-0,059) SEK
Word from our CEO
It is with great joy we can report that the positive development of the core business, clinically proven intimate self-care products, continues in to 2023 with strong sales growth, new partner agreements and continuous very positive development in the home market Sweden. The development in our business unit Lifestyle Consumer, which mainly focuses on sustainable period products, remains challenging. Our focus in this business area is primarily to reduce costs, improve bottom line and gradually turn the sales around with a focus on selected markets. It is therefore encouraging that earnings improved in the first quarter. The efforts to turn the sales around continues.
In January, we signed an exclusive distributor agreement for Central America with Windsor Pharmaceutical, headquartered in Panama, concerning our self-tests for vaginal infections and amniotic leakage. The products will be sold under Windsor Pharmaceuticals’ own brand Amniotest. We are very pleased to have landed this agreement with Windsor Pharmaceutical, which has a specific focus on women’s health in Central America.
After the period, we signed an equally significant agreement with the listed German medical device company Siemens Healthineers for the distribution and marketing of our patented test for vaginal infections. This agreement is attractive in many aspects. With a partner with a turnover of €21.7 billion last year, we will have a very strong force behind educating users concerning the benefits of our unique and patented technology, raising awareness, and driving sales. It is a quality mark that Siemens Healthineers add our novel technology around vaginal infections to its portfolio.
During the Covid pandemic, we saw a growing trend among people to take greater responsibility for their own health with self-care products and at the same time relieve healthcare systems worldwide. It is important then that these self-care solutions are clinically proven. As a result, in 2022, we formed the Medical Consumer business unit with a focus to offer consumers innovative and clinically proven self-care solutions. I am happy to see how this trend is developing in a very positive direction.
Within Medical Consumer, Sweden constitutes an important reference market. The rapid growth in 2022 compared to the previous year continues and during Q1 2023 we recorded an all-time high in Sweden for an individual quarter. After the end of the period, we also announced that the leading product VagiVital AktivGel will be available at approximately 300 of Apotek Hjärtat’s 400 physical stores. We expect continued rapid growth for the VagiVital range in Sweden in 2023.
Medical Consumer is since 2022 Peptonics’ core focus and accounted for 70% of sales in Q1 2023, corresponding to a growth of almost 60% compared to the same period in 2022. The focus of Lifestyle Consumer is, as mentioned above, to improve its bottom line. Compared to the same period in 2022, the result in Lifestyle Consumer improved with 53%, while sales dropped 52%.
Thanks to a successful rights issue during the first quarter 2023, we have gained a solid financial position and a strong ownership structure, where the two largest owners together control roughly 30% of the capital and votes in the company, divided between Maida Vale with 15.7% and Vidarstiftelsen with 14.6%. Our new strong and long-term owner base contributes, apart from the financing, with competence and a global network in the areas where we operate. I view this very positively. It provides a completely different opportunity for our future expansion by enabling accelerated growth with new products, strengthening our organization and distribution network, and reaching out to new geographies.
With a firm financial position and a continued positive development going forward of our very focused commercial plan and exciting business relations globally, I look forward to updating you on upcoming milestones.
Erik Sundquist
CEO
FINANCIAL INFORMATION
Group
Revenue – Sales of goods during the first quarter amounted to SEK 8,874 (8,908) thousand. Which is just below compared to the same quarter last year. The sales have not increased compared to the corresponding period last year is explained by the fact that the LifeStyle Consumer business area has declined due to increased competition and thus a lower return on investment regarding marketing skills that have been reduced as a result. Other operating income for the quarter was SEK 193 (521) thousand.
Costs – Costs for the first quarter amounted to SEK -15,721 (-20,303) thousand.
Costs of goods sold for the quarter amount to SEK -4,005 (-3,312) thousand, which corresponds to a gross profit of SEK 4,869 (5,596) thousand and a gross margin of 55% (63%). The reason for the reduced gross margin is primarily a change in customer mix, as the first quarter of 2023 contains a larger proportion of partner business. The main reason for reduced costs is extensive organizational efficiency improvement.
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Profit – The group’s result after net financial items for the first quarter amounted to SEK -7,998 (-11,258) thousand. The improved result is an effect of implemented efficiencies.
Financial position and liquidity – Cash and bank as of March 31, 2023, amounted to SEK 15,307 (17,461) thousand.
Shareholders equity – The group’s equity as of March 31, 2023 amounted to SEK 82,737 (67,761), which gives an equity ratio of 86 (70) percent.
Liabilities – The group’s short-term liabilities amounted, as of March 31, 2023, to SEK 13,198 (28,430) thousand. During the quarter, there was a repayment of interest-bearing debts of SEK 21,462,000. Remaining liabilities are only of a short-term nature.
Organization – During the period, the average number of employees was 34 (34). At the end of the period, the number of employees amounted to 34 (34).
Audit
This Interim Report has not been reviewed by the Company’s auditors.
Assurance
The board of Directors and the CEO assure that the interim report provides a fair overview of the company’s operations, position and results.
FINANCIAL CALENDER
Annual General Meeting 2023-05-24
Quarterly report, 2 2023-08-11
Quarterly report, 3 2023-10-24
Year-end report, 2023 2024-02-23
The annual general meeting will be held on May 24, 2023, in Stockholm. The annual report will be available on the Company’s website, www.peptonicmedical.se, no later than 3 weeks before the general meeting and can then also be requested from the Company by e-mail erik.sundquist@peptonicmedical.se.
Stockholm on 24 April, 2023
Jan Bardell, Chairmen of the Board Daniel Rudeklint, Board member
Anders Blom, Board member Anders Norling, Board member
Erik Sundquist, CEO
For more information please contact:
Erik Sundquist, CEO PEPTONIC Medical AB. Phone: +46 722 499 043
Note: This document has been prepared in both Swedish and English. The Swedish version shall govern in case of differences between the two documents. The document contains certain statements about the Company’s operating environment and future performance. These statements should only be regarded as reflective of prevailing interpretations. No guarantees can be made that these statements are free from errors.
COMPANY BRIEF
PEPTONIC Medical AB (publ) is an innovative biomedical company that conducts research on and development of drugs and medicaldevices in the field of women’s health. Our vision is to offer safe and effective treatments for women-specific diseases and medical conditions. PEPTONIC Medical launched VagiVital® in July 2018. This is a hormone-free product for the treatment of vaginal atrophy and vaginal dryness. See www.vagivital.com
The company was founded in 2009 and the share has been traded since2014 on Spotlight (www.spotlightstockmarket.com , short code: PMED in Stockholm.
Since August 2020, Lune Group Oy Ltd. is a wholly ownedsubsidiary of the Pe Medical. Lune Group Oy Ltd. is a company founded by Heli Kurjanen in 2005. The company’s business concept is to leada menstrual revolution in a positive spirit. By focusing onsustainable development, environmental issues and the promotion of sexual health, the company has developed to take the lead for the menopausal companies. Lunette® menstrual cups are an alternative to disposable menstrual protection and last for several years. Thecompany has resellers in 50 countries and sells Lunette products toover 100 countries via its web shop. Lune Group has in the USA the subsidiary Lune North America Inc. Lunette® menstrual cups are designed, manufactured, and packaged in Finland. For more information about Lunette®, visit www.lunette.com.
