INTERIM REPORT THE FIRST QUARTER 2019
· Net sales amounted to MSEK 420.8 (267.1). This corresponds to an increase of 58%. The growth is attributable to products acquired during the period.
· Net sales decreased by 6% compared to pro forma numbers for the same period 2018. At comparable exchange rates, sales decreased by 8%. The decrease in net sales is mainly attributable to the Norwegian market, where a weak flu season and residual order situation affected the outcome.
· EBITDA amounted to MSEK 153.0 (88.7), corresponding to an EBITDA margin of 36.4% (33.3%).
· The gross margin was 55.8% (56.8%).
· Cash flow from operating activities amounted to MSEK 91.8 (41.5).
· Earnings per share were SEK 0.25 (0.45).
· Cash and short-term investments amounted to MSEK 493.6 (295.2) at period end.
· On January 2, 2019, Karo Intressenter announced that it raised the consideration in its cash offer to SEK 38.00 for each share in Karo Pharma, that they extended the acceptance period until January 17, 2019, and that the condition relating to obtaining the required regulatory and regulatory permits, approvals, decisions or similar had been fulfilled. The offer was later extended until February 12th.
· An extraordinary general meeting on February 14, resolved that the board of directors shall consist of six ordinary board members without deputies. The general meeting resolved on the re-election of Håkan Åström and the new election of Bo Jesper Hansen, Erika Henriksson, Vesa Koskinen, Christoffer Lorenzen and Åsa Riisberg to the Board of Directors until the end of the Annual General Meeting 2019.
IMPORTANT EVENTS AFTER PERIOD END
· On April 3, 2019, it was announced that Karo Pharma’s Board appointed Christoffer Lorenzen as the new CEO of Karo Pharma, thereby replacing Peter Blom. Christoffer assumes his new position on July 1, 2019. Until then, Ulf Mattsson has the role of acting CEO.
COMMENT ON OPERATIONS
During the first quarter of 2019, revenues continued to grow with 58 per cent. Pro-forma sales declined, partly due to a weak influenza season in Norway and delivery problems at a manufacturer. The quarter was positively impacted by the acquired products from LEO Pharma. Integration of the product portfolio from LEO Pharma is now in its final phase and we note that our key markets outside the Nordic region are developing positively. Our main focus in 2019 will be to continue to develop and optimize the business and to launch the new products we have in plan.
Karo Pharma has grown sharply in recent years, mainly driven by strategic acquisitions. In a short time, the company has established itself as a successful Specialty Pharma company in the Nordic region and has now entered Europe. In January 2019, EQT, through Karo Intressenter AB, acquired a majority stake in Karo Pharma. EQT will be able to support the company with both expertise and capital, which will be critical for implementing the company’s strategy going forward and achieving our long-term goals.
An extraordinary general meeting in February decided to elect a new Board of Directors under Bo Jesper Hansen’s leadership. The new board has appointed Christoffer Lorenzen as the new CEO of Karo Pharma from July 1, 2019. Until then, I have been given the opportunity to assume the role of acting CEO. During April, I familiarized myself with the business and worked intensively with the management to enable Karo Pharma’s continued growth journey and to help Christoffer to a flying start. I have great confidence in Karo Pharma’s prospects of becoming a successful international Specialty Pharma company.
This report has not been subject to auditor’s review.
AGM May 16, 2019
Interim report Jan-June July 19, 2019
Interim report Jan-Sept Nov 1, 2019
Year-end report 2019 Feb 13, 2019
All reports will be available on the corporate web site at the respective dates above.
Stockholm on April 26, 2019
Karo Pharma AB (publ)
FOR FURTHER INFORMATION, PLEASE CONTACT
Ulf Mattsson, Acting CEO, +46 70 976 94 66,
Mats-Olof Wallin, CFO, +46 76-002 60 10, email@example.com
ABOUT KARO PHARMA
Karo Pharma is a specialty pharma company that develops and markets products to pharmacies and directly to healthcare providers. The share is listed on Nasdaq Stockholm in the Mid Cap segment.
The information in this report is such that Karo Pharma is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on April 26, 2019 at 8.30 a.m. CET.