Hofseth Biocare ASA: SECOND QUARTER AND H1 2022 FINANCIAL REPORT
HBC recorded gross operating income of NOK 25.8 million (31.0 million) in the second quarter. For the first half of 2022, HBC achieved a turnover of NOK 56.6 million (47.9 million). Cost of sales (CoGS) amounted to NOK 17.7 million (21.6 million) in the quarter. Operating profit (EBITDA) for the quarter was NOK -18.3 million (-14.6 million) and operating loss (EBIT) was NOK 26.8 million (22. 7 million) in the second quarter and NOK 60.3 million (51.5 million) in the first half. 2022.
Operating cash flow in the first quarter was NOK -8.8 million compared to -NOK -17.9 million in the first quarter of last year. Net cash flow from investing activities amounted to NOK -4.6 million in the first quarter, compared to -NOK -11.5 million in the corresponding quarter of last year. Cash flow from financing activities amounted to -5.9 million NOK in the first quarter, compared to -4.9 million NOK in the first quarter of 2021.
Second Quarter Highlights
- The second quarter was impacted by limited supply of salmon cuts due to soaring salmon prices, which resulted in unusually low raw material production volumes. However, very strong demand and favorable market prices resulted in net sales of NOK 25 million with a gross margin of 31%, compared to 21% in the same period last year.
- We have successfully completed our second preclinical trial of bioactive peptides in SPH in prostate cancer after publishing the results of our first preclinical trial in the journal Marine Drugs. We demonstrated that adding the peptides to standard of care enhanced anti-tumor activity in drug-sensitive and drug-resistant cell lines.
- Optimization of the manufacturing of the main eosinophilia modulator lipopeptide MA-022 has been successfully completed. Preclinical trials with MA-022 as a lead drug in eosinophilic esophagitis are planned.
For more information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Telephone: +47 93632966
About Hofseth BioCare ASA:
HBC is a Norwegian supplier of consumer and pet health ingredients and an incubator for new pharmaceutical drugs. Research is ongoing to identify the individual elements of its ingredients that modulate inflammation and immune response with preclinical studies underway at several clinics and academic research labs. Leading clinical and preclinical candidates are focused on developing an oral treatment for inflammatory diseases caused by eosinophils (a type of white blood cell). Clinical trials with the oil are underway to improve lung inflammation in eosinophilic asthma and COPD (“smoker’s lung”) as well as in COVID.
Other avenues focus on protecting the gastrointestinal (GI) system against inflammation (including ulcerative colitis and orphan necrotizing enterocolitis) and the use of salmon protein hydrolyzate peptide fractions (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 use of natural resources and full traceability. Using innovative hydrolysis technology, HBC can preserve the quality of fat, protein and calcium in fresh leftover salmon.
Hofseth BioCare is headquartered in Ålesund, Norway, with branches in Oslo, London, Zürich, Ningbo, New Jersey and Palo Alto.
This information is subject to the disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Act.