FINANCIAL SUMMARY 

• Net sales for the first quarter amounted to SEK 10,751 thousand (5,037)
• The operating loss amounted to SEK 9,241 thousand (15,331)
• Loss after tax amounted to SEK 10,171 thousand (16,734)
• Earnings per share before and after dilution were SEK -0.12 (-0.46)
• Cash and cash equivalents per 31 March 2024 amounted to SEK 28,348 thousand (23,600). Shortly after the end of the quarter, the company's cash and cash equivalents increased by approximately SEK 7 million as a result of incoming payments from customers.

 
EVENTS DURING THE FIRST QUARTER 

• In January, the fifth order for NLAB Saga® with a value of approximately SEK 8.5 million was received from a recurring customer in China. Since June 2024, the customer has placed orders for NLAB Saga® with a total value of approximately SEK 18 million.
• The end date for the loan from Flerie Invest AB has been extended to 2 July 2027 from 5 July 2025. The loan will be paid off in stages as follows:
  - SEK 5 million to be amortized on June 30, 2025
  - 1/3 of the remaining to be amortized on June 30, 2026
  - The remainder to be amortized on 30 June 2027

SALES RECORD FOR A SINGLE QUARTER
The first quarter of the year meant a sales record for a single quarter for the company and a good start to the new year. The ongoing positive customer dialogues combined with a continued stabilization of the production process create good conditions for increased sales growth during the year.
 
Net sales for the quarter amounted to SEK 10,751 thousand and consist mainly of sales of our silica media NLAB Saga®. In January, we received the fifth order for NLAB Saga® from a recurring customer in China, with a value of approx. SEK 8.5 million. Since June 2024, the customer who uses NLAB Saga® in the production of GLP-1 analogues has placed orders for a total of approx. SEK 18 million. We continue to work closely with this customer and believe that more orders will come from them during the year. During the quarter, we also delivered a small production order to an insulin manufacturer, as well as several evaluation orders to customers where we are working to take them from using our product on a lab scale to implement it in large-scale production.

Our team works intensively with both new and existing customers. So far, this has yielded results in China, but we are also seeing positive signals for several of our products in India. When we have several customers who are closer to buying our products, it becomes clear that they all have the same checklist, but that they may have different ways of prioritizing. They evaluate us regarding product quality, application knowledge, delivery capacity and the company's long-term approach. Customers who prioritize product quality and application knowledge rank us the highest, while those who want a supplier they have worked with before or who has a strong track record rank us lower. This means that every new deal we make builds our credibility with other customers.

We are currently experiencing strong demand, especially for the product that manufacturers of GLP-1 analogues traditionally buy. What is holding us back is that we lack sufficient volumes of stocks of that product type for the demand we are now seeing. There is also a great need for other products, but here the timing of the various projects comes into play – the customers' production schedules and internal processes are both difficult to predict and to influence for us.

During Q1, we increased resources for the work to stabilize the large-scale production of silica and implemented improvements in several process steps. These changes will have an effect at the end of the second quarter with a significant increase in output and better predictability in production, which lays the foundation for higher sales going forward. We have also made adjustments to address the need for products for GLP-1 manufacturing. The production process was initially set up so that the majority would be product types that are mainly used in insulin purification. Adjustments mean that the majority now produced are product types that are primarily used in the purification of GLP-1 analogues. 

In summary, we are confident that we will deliver growth during the year, while it is likely that sales will vary from quarter to quarter.

I get a lot of questions about our purification media NLAB® Siv. I was recently in India and had a very good dialogue with the customer to whom we delivered NLAB® Siv last year at a value of just over SEK 4 million. The customer has made major capacity investments and restructuring in their production facility with requirements for regulatory approvals as a result. This has affected their schedule and thus their ability to order more from us. They emphasize that they are satisfied with our product, which together with their capacity expansion, means that I continue to be positive that orders will come, even if I do not know when.

Last year, we developed another non-silica-based purification media, NLAB® Idun, as a complement to NLAB Saga® in the purification of peptide-based drugs. By adding NLAB® Idun to our product portfolio, we can further streamline our customers' workflows and thus reduce their production costs even more. During the first quarter, several customers have evaluated a beta version of NLAB® Idun with good results and we plan to launch the product in the second half of this year.
The world around us is turbulent right now and there is a great deal of general concern regarding access to the all-important American market. So far, the ongoing trade war has not affected our business, and the US tariffs hit the same for all silica suppliers since no one has production in the US. Our customers may become affected, but we cannot see that yet. GLP-1 drugs are in short supply, and of those in commercial production, as well as those in late-stage development, a vanishingly small proportion are manufactured in the US. To satisfy the current demand, producers outside the US will therefore be needed for a long period to come.  Of course, we continue to monitor the development closely.

Despite a shaky surrounding world, I see a bright outlook for Nanologica's development in 2025. The combination of strong global demand and our improvement and expansion of production capacity means that I expect strong sales growth in the second half of the year. I look forward to reporting on continued progress during the rest of the year.
 
 
Södertälje in April 2025 
Andreas Bhagwani, CEO