Interim Report Q2 2026
Boule Diagnostics Interim Report Q2 2026
Quarter April-June 2026
- Net sales amounted to SEK 112.2 million (129.3), corresponding to a decrease of 13.3 percent. Organic sales growth amounted to -5.3 percent, currency effects amounted to -8.0 percent.
- The number of instruments sold decreased by 41.2 percent to 605 (1029).
- Gross profit amounted to SEK 45.9 million (50.0), corresponding to a gross margin of 40.9 percent (38.7).
- Adjusted operating profit amounted to SEK 3.3 million (4.4), corresponding to an adjusted operating margin of 2.9 percent (3.4).
- Non-recurring expenses amounted to SEK 2.9 million (4.5), attributable to the impairment of the Group's assets in Russia.
- Operating profit amounted to SEK 0.4 million (1.3), corresponding to an operating margin of 0.3 percent (1.0).
- Profit for the period amounted to SEK -1.7 million (-7.1).
- Earnings per share before and after dilution amounted to SEK -0.04 (-0.15).
- Operating cash flow amounted to SEK -2.4 million (2.9).
- The Group's available cash and cash equivalents, including unutilized overdraft facilities, amounted to SEK 26.2 million (39.2) as of June 30.
Comments from the President and CEO
I took up my position on June 22 and have spent just over a week as CEO of the company at the end of this quarter. My first time has, and will be, characterized by familiarizing myself with the business to form an idea of priorities going forward. Despite the short time in the company, I have already been impressed by the competence and commitment that exists in the company – there is a pride and desire to build a strong Boule. In the near future, I will continue to familiarize myself with the company and look forward to driving the journey of change that the company is in together with the board, management and employees.
Operational and market performance
Sales development in the second quarter was characterized by a challenging market environment, where sales during the quarter decreased by 13.3% percent compared to the previous year. Exchange rate fluctuations represented significant headwinds, while the underlying organic decline was considerably more moderate. Order intake for both instruments and consumables decreased compared to the previous year, mainly due to geopolitical tensions in the Middle East, including the conflict with Iran, disruptions to shipping related to the situation in the Straits of Hormuz and limited access to US dollars for several key customers in the region.
In light of these challenges, it is gratifying to see that OEM sales, after a weak first quarter, are recovering with both organic growth and good and improved profitability compared to the same period last year, while VitalScientific U.S. made a positive contribution to the quarter's overall earnings. We also see an improvement in our overall gross margin of 2.2 percentage points compared to the previous period, partly due to an increased share of OEM sales.
Furthermore, it is gratifying to see that after a weak start to the year, sales of instruments in the veterinary segment increased by 35% compared to the same period last year. During the next six months, we expect a number of instrument procurements and this, combined with lower inventory levels at several important distributors, means that we look forward to the second half of the year with confidence.
Financial performance
The Group's sales amounted to SEK 112 million, compared to SEK 129 million in the previous year, which corresponds to a decrease of 13%. Development was mainly affected by negative currency effects of -8.0% but also by negative organic growth corresponding to -5.3%.
Gross profit amounted to SEK 45.9 million, corresponding to a gross margin of 40.9%, compared to 38.7% last year. The strengthening of the gross margin reflects a positive product mix with a higher share of reagents and OEM sales, but it should also be noted that the negative currency effect represents a headwind for the gross margin.
Adjusted EBIT for the quarter was SEK 3.3 million, compared to SEK 4.4 million in the previous year. The operating margin therefore decreases from 3.4% last year to 2.9% this year. Lower sales are the main reason for this decrease.
Operating cash flow amounted to SEK -2.4 million, compared to SEK 2.9 million last year, mainly caused by high interest expenses. The underlying structural trend of cost savings and improved management of working capital that Boule Diagnostics has implemented in recent years thus remains, as does our focus on these areas.
Operational excellence and quality
In the second quarter of the year, we strengthened our operational capabilities by expanding our commercial presence with a new Regional Sales Manager in Cameroon to accelerate growth in French-speaking West Africa, streamlining our direct service support organization in the U.S. in both field and back-office functions, and establishing a dedicated LATAM task force to improve customer support and increase our ability to quickly meet customer needs across the region.
Furthermore, during the quarter, we established separate Operations functions for CDS and diagnostics, which creates conditions for a strengthened focus in each segment.
Following the three successful audits by BSI and FDA conducted in the first quarter, we completed a fourth regulatory audit conducted by the Korean authorities in the second quarter without any remarks. The continued positive outcome confirms the strength of our quality management system, the efficiency of our compliance processes and the high and consistent quality of our manufacturing operations.
I would like to thank our employees for your commitment during a challenging quarter and our customers, partners and owners for your continued confidence in Boule Group.
Johan Folkunger
CEO
Boule Group