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Hofseth Biocare ASA: FOURTH QUARTER 2022 & FULL YEAR FINANCIAL REPORT
In Q4, the ingredients business continued to show favorable momentum with growth of 87 %, compared to same quarter last year on an underlying basis, generating sales revenues of NOK 34m, compared to NOK 18m in the same period last year.
The finished goods business delivered record fourth quarter and Full Year revenue and cash margin, with revenue at +68 %, NOK 31.7m, compared to 18.8m in the same period in 2021, and the fourth quarter alone delivering NOK 10.7m, compared to 3.7m last year.
HBC has seen a 103 % increase in sales from 31m in the second half of 2021, to 63m in H2 2022. In addition, we have lowered cost base and increased our gross margins on all products.
Cash flow from operations during the fourth quarter was NOK -5.5m, compared to NOK -16.2m in fourth quarter last year. Cash and cash equivalents decreased by NOK 13.8m during the quarter, leaving total holding of cash and cash equivalents at NOK 69.4m in free liquidity, including credit facility, by the end of 2022.
Highlights in the fourth quarter
In October, Stanford School of Medicine successfully completed pre-clinical trial work testing ProGo bioactive peptides in effective gut health support.
HBC has hired Mrs. Christel Kanli as new CFO/COO. She has extensive global experience from Orkla ASA and several start-ups and will start in March 2023.
First significant ProGo order from China for iron deficiency applications commenced in Q4 and the pipeline is building.
Please find the HBC Q4 2022 Financial report attached.
For further information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no
About Hofseth BioCare ASA:
HBC is a Norwegian consumer and pet health ingredient supplier and an incubator for new pharmaceutical drug leads. Research is ongoing to identify the individual elements within its ingredients that modulate inflammation and the immune response with pre-clinical studies ongoing in multiple clinics and university research labs. Lead clinical and pre-clinical candidates are focused on developing an oral treatment for inflammatory disease driven by eosinophils (a type of white blood cell). Clinical trial work with the oil is ongoing to ameliorate lung inflammation in eosinophilic asthma and COPD ("smokers lung").
Other leads are focused on the protection of the Gastro- Intestinal (GI) system against inflammation (including ulcerative colitis and the orphan condition necrotizing enterocolitis) and using peptide fractions of salmon protein hydrolysate (SPH also known as 'ProGo') as a Medical Food to help treat age-related Sarcopenia, and as a treatment for Iron Deficiency Anemia.
The company is founded on the core values of sustainability, optimal utilization of natural resources and full traceability. Through an innovative hydrolysis technology, HBC can preserve the quality of the lipids, proteins and calcium from fresh salmon off-cuts.
Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Ningbo, New Jersey and Menlo Park, CA.
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
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