July – September

• Net sales amounted to SEK 449 (401) million, an increase of 12.1 percent and an organic* decrease of 9.5 percent.

• EBITA* amounted to SEK 87 (104) million and adjusted to SEK 94 (110) million. The EBITA margin* amounted to 19.3 percent (26.0) and adjusted to 20.9 percent (27.3).

• Adjusted EBITDA** amounted to SEK 117 (128) million and adjusted EBITDA margin amounted to 26.1 percent (31.8).

• Operating profit amounted to SEK 66 (97) million and adjusted* to SEK 73 (102) million.

• The operating margin was 14.6 percent (24.2) and adjusted to 16.2 percent (25.5).

• Profit after tax amounted to SEK 38 (65) million.

• Earnings per share were SEK 0.48 (0.99) before and 0.48 (0.98) after dilution.

• Cash flow from operating activities increased to SEK 103 (97) million.

• Net cash* as of September 30 was SEK 250 (224) million.

• On September 25, Andrew Kellett started his position as interim CFO.

January – September

• Net sales amounted to SEK 1,219 (1,182) million, an increase of 3.2 percent and an organic* decrease of 12.1 percent.

• EBITA* amounted to SEK 213 (307) million and adjusted to SEK 262 (323) million. The EBITA margin* amounted to 17.4 percent (26.0) and adjusted to 21.5 percent (27.3).

• Adjusted EBITDA** amounted to SEK 324 (375) million and adjusted EBITDA margin amounted to 26.6 percent (31.7).

• Operating profit amounted to SEK 172 (286) million and adjusted* to SEK 221 (301) million.

• The operating margin was 14.1 percent (24.2) and adjusted to 18.2 percent (25.5).

• Profit after tax amounted to SEK 115 (194) million.

• Earnings per share were SEK 1.60 (2.94) before and 1.60 (2.93) after dilution.

• Cash flow from operating activities decreased to SEK 130 (242) million.

• On March 9, it was announced that Lars Bäckman, Chief Legal Officer, will retire and leave Biotage in September 2023.

• On April 28, Maja Nilsson informed that she is leaving the position as CFO.

• On June 1, Biotage completed the acquisition of Astrea Group Holdings Company Ltd ("Astrea"), which was announced on 15 February 2023. As part of the transaction 13,954,103 ordinary shares were issued in June.

• On September 25, Andrew Kellett started his position as interim CFO.

Message from the CEO
Biotage´s total sales of SEK 449 million, including the new group member Astrea Bioseparations, represents a reported growth of 12 percent. We delivered reported growth in the Americas and EMEA, representing approximately 80 percent of our business. Our relentless focus on improving gross margins has been successful and I see Biotage today as a stronger and more diversified company than ever.

Our commitment to improve gross margins is paying off with an increase of 2.8 points to 62.9 (60.1) percent. We also delivered adjusted EBITDA of SEK 117 (128) million in the quarter and 26.1 (31.8) percent margin. At the same time, we continued to invest in R&D, with total gross spend in the quarter of SEK 58 (35) million to ensure we have a future pipeline of market leading products.

Parts of our business are still recovering from the swift changes in the market due to a decline in demand for Scale Up solutions connected to the manufacture of COVID-19 vaccines, as well as decelerating sales of Small Molecules systems in China. In spite of the continuing challenging market environment, our cashflow from operating activities in the quarter improved by SEK 6 million to SEK 103 (97) million.

Improved margins and cashflow are signs of success for the gradual implementation of our margin expansion and cost optimisation programme. Sales remain robust in most parts of the business. Two out of our three geographic markets are growing, EMEA and Americas, where we had a new record quarter. Sales in APAC are down compared to the third quarter of last year. We have and will continue to take all appropriate actions to ensure all our businesses have the right sized cost base to continue to trade profitably and maximise the market opportunities.

Four out of our six product focus areas are growing. Diagnostics, which includes our oligonucleotide business acquired with ATDBio, grew 50%. I see this as proof that Biotage has the processes to successfully integrate acquired companies and make their businesses grow. Driven by both the oligo business and newly acquired Astrea Bioseparations, with its business in the product focus area Biologics & Advanced Therapeutics, enabled our aftermarket ratio comprising of consumables and services to expand to 65 (52) percent in the quarter. When it comes to Small Molecules & Synthetic Therapeutics, we want to defend our market share in order to retain a strong position when the markets in which we operate start to grow again. In China for example, we are diversifying our local business with an increased focus on growing market areas and application expertise. Drug discovery being a dynamic and exciting industry, will inevitably need new equipment, tools, and solutions in the future, so I do not doubt that capital expenditure will bounce back. Then our growth will, too. Already in the third quarter of this year, the hesitancy among customers to invest in systems has lessened slightly.

A testament to the strength of the group is our gross cash balance of SEK 501 (441) million and a net cash of SEK 250 (224) million. This tells me that Biotage is a healthy company with a strong balance sheet.

Biotage’s strategy is to have a global presence, diversification of product portfolio, markets in attractive new niches to find exciting application areas, and to strengthen recurring revenue. This makes the company more robust in the face of sudden market changes, such as with the pandemic. In this sense, the newly acquired Astrea Bioseparations has been positive in this first full quarter as part of the group.

Astrea Bioseparations has expanded its manufacturing and warehousing capabilities in the US with a new facility in Canton, Massachusetts, which will be completed in the fourth quarter. This reflects growing demand for its innovative chromatography solutions in North American markets. The increased footprint will cut delivery lead times and boost customer support.

Also, at Biotech Week Boston late in September, a disruptive and sustainable new technology came live with Astrea Bioseparations’ launch of scaled-up versions of their nanofiber chromatography purification technology. These technologies have been tailored specifically for cell and gene therapies.

As of 25 September, I am happy that we have a new interim CFO Andrew Kellett. Recruitment of a permanent successor as CFO continues.

A lot more can be said about the strengths of our company and people. I feel confident that we will close the year successfully, with a strong commitment to both improve sales and control costs throughout the organisation. We will diligently push on in our continued efforts to make Biotage a leading life science and diagnostics tools company in the markets we operate in.

Uppsala, October 25, 2023

Tomas Blomquist
President and CEO