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Devyser Diagnostics AB (FRA:OL0) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...

In This Article:

  • Revenue: SEK 54.8 million, up 7.9% from SEK 50.7 million in Q1 last year.

  • Gross Margin: 83.4% for the quarter.

  • EBIT: Minus SEK 21 million, including SEK 8 million in one-offs and SEK 6 million in FX headwinds.

  • Cash Position: SEK 114 million at the end of the quarter.

  • EMEA Market: Largest market, but grew less than usual this quarter.

  • USA Market: Gained market share with strong growth.

  • Asia Pacific Market: Continued strong growth from small numbers.

  • Distributor Sales: Mix of smaller thermal orders and steady growth from smaller distributors globally.

  • New Product Launches: Recent product launches accounted for approximately 18% of total revenues in the past year.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Devyser Diagnostics AB (FRA:OL0) reported its second strongest revenue quarter in company history, with SEK 55 million, marking an 8% growth compared to Q1 last year.

  • The company achieved a gross margin of 83%, indicating strong profitability potential.

  • Devyser is focusing on two key customer segments: clinical genetic labs and transplantation laboratories, which are expected to address unmet diagnostic needs.

  • The company is advancing its transplantation diagnostics strategy by decentralizing tests, which could lead to faster turnaround times and lower costs.

  • Devyser has initiated an FDA project for its cfDNA product, with promising early adoption by US customers even before FDA approval.

Negative Points

  • The EBIT was negative at minus SEK 21 million, impacted by SEK 8 million in reorganization costs and SEK 6 million in FX headwinds.

  • Revenue growth of 7.9% was lower than the previous quarter, indicating potential volatility in quarterly performance.

  • The EMEA region, while the largest market, showed less growth than usual this quarter.

  • The company faced challenges with a strong Swedish Krona, leading to a SEK 6 million negative FX impact.

  • There are ongoing restructuring costs that will continue to impact financials into Q2.

Q & A Highlights

Q: Can you provide more details on the distributor sales and expectations for future orders? A: We do not provide specific guidance on individual customers, including Thermo Fisher. Orders have been coming in during Q1 and continue into Q2, but no further specifics are available. - Fredrik Dahl, Interim CEO

Q: How confident are you in achieving the 30% organic growth target for 2025? A: We are very confident in meeting our goals and milestones. Despite quarterly fluctuations, there is no reason to change our guidance for the full year. - Fredrik Dahl, Interim CEO