January – March 2025

• Net sales totaled SEK 32,292 (25,808)* thousand, with a growth rate of 25%, excluding license revenue, 22% when adjusted for currency effects. Net sales, including the divested Antibody Business and license revenue, totaled SEK 32,292 (40,057)** thousand, with a decrease of -19%, -21% when adjusted for currency effects.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 8,906 (8,291)* thousand. EBITDA including the divested antibody business and license revenue totaled SEK 8,906 (18,568)** thousand.
• Operating profit (EBIT) totaled SEK 6,391 (6,333)* thousand. EBIT including the divested antibody business and license revenue totaled SEK 6,391 (15,833)** thousand.
• As a result of the Swedish krona strengthening during the period against both the USD and the EUR, with the greatest strengthening and impact related to the USD, the operating profit was impacted by currency translation effects amounting to -2,703 (1,251) thousand SEK, the majority of which is unrealized.
• Profit/loss for the period totaled SEK 3,456 (12,742) thousand.
• Earnings per share*** totaled SEK 0.05 (0.19).
• Comprehensive income for the period totaled SEK 4,613 (14,350) thousand.
• Cash flow from operating activities was SEK 10,652 (18,090) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 175,410 (136,793) thousand.

*Previous year excluding the divested antibody business. The antibody business was divested on August 19, 2024.
** Previous year including the divested antibody business
***Earnings per share are calculated by dividing profit by the weighted average number of shares during the year. There is no dilutive effect.

Message from the CEO

We begin the year with a very strong performance in the first quarter. Sales in our core business increased by 25%, marking our best-ever quarter in the enzyme business, excluding license revenues.

I am pleased with the growth this quarter. It is particularly gratifying to see that we continue to deliver broad and balanced growth—both geographically and across our product portfolio. Our service business also continues to show positive development. Growth has been strong across all our key geographic markets, with North America contributing the most. Our service offering has demonstrated solid growth over the past twelve months, and we saw continued strong activity and expansion in this area during the first quarter, especially in antibody modification and antibody-drug conjugates (ADCs).

I am also satisfied with our operating profit, not least in the light of the significant negative currency effects resulting from the strengthened Swedish krona. Despite a direct negative exchange rate variance of -2.7 MSEK, we delivered a strong operating result, with an EBITDA margin of 28%. At the same time, we maintained a high gross margin and continued to generate solid cash flow from operating activities.

Concerns regarding a potential trade war, driven by the introduction of tariffs, affected both the end of the first quarter and the start of the second. We are well-positioned to manage tariffs based on the rates currently mentioned in public discourse. We already have an established operational presence through our U.S. subsidiary, which helps mitigate the impact of tariffs, while our facility in San Diego provides additional operational flexibility. Consequently, we assess that the direct impact of tariffs, for both our customers and our business, will be very limited.

At the same time, restructuring and reprioritization within the NIH (National Institutes of Health) are underway as result of initiatives introduced by the new U.S. administration. NIH funding is primarily directed toward academic research. Our customer base consists almost exclusively of the global biopharma and biotech industry, which together account for more than 90% of our revenue streams. Consequently, sales to academic customers in the U.S. represent only a very small portion of our business. Therefore, we currently assess that the impact of reduced NIH funding will be very limited in the short to medium term. The FDA is also undergoing changes, but we have not yet seen any negative effects on customer activity as a result.

Our ambitions for continued growth—through a broader product portfolio, commercial focus, and strong customer relationships—remain firm. We have healthy liquidity, and together with our cash flows, this provides solid conditions for continued investment in our future growth. We remain in a strong position and continue to pursue our long-term growth strategies, which also include inorganic growth initiatives for which our cash position offers strategic flexibility. While the financial markets are currently experiencing turbulence driven by macroeconomic and geopolitical dynamics, such environments also present opportunities for our long-term growth strategies.

The start of the second quarter has shown continued strong customer activity despite prevailing macroeconomic uncertainty. This supports my positive outlook on our business and our growth prospects going forward.

In closing, I would like to extend my sincere thanks to all employees at Genovis for their fantastic efforts at the start of the year - efforts that reflect our commitment to providing our customers with tools to help develop the medicines of the future.