iZafe Group AB (publ.) today presents its report for the third quarter on November 17.
Financial Highlights Summary
- Net sales for the quarter amounted to 512 (75) TSEK, a growth of 583% compared to the same quarter the previous year. The increase in sales can be attributed to both organic growth and growth through acquisitions, as Pilloxa was acquired in December 2022. Excluding revenue from the acquired company, the growth amounted to 317%. The quarter's revenue consists of income related to the sale of the digital medication robot Dosell and sales of the medical device Pilloxa. Pilloxa AB was acquired on November 28, 2022, and therefore is not included in the quarter's revenue for the previous year.
- Operating profit for the quarter amounted to -5,012 (-5,680) TSEK.
- Profit after financial items for the quarter amounted to -5,004 (-5,751) TSEK.
- The cash flow for the period amounted to -3,192 (-4,513) TSEK.
- Earnings per share for the quarter before/after dilution amounted to 0.02 (-0.08) SEK.
- Equity per share at the end of the period amounted to 0.2 (0.3) SEK.
- The solvency ratio at the end of the period was 82.9 (75.2) percent.
Key Events During the Quarter
- iZafe successfully completed the implementation of Dosell in Spain. Several adjustments and tests have been conducted to ensure a successful pilot that has commenced.
- iZafe introduced its new visual identity and expression during the quarter, aligning better with the company's current position and direction. In connection with this, the new website was launched, available in both Swedish and English.
- iZafe carried out all necessary technical integrations and adjustments to launch Dosell in the Dutch market. Consequently, the first delivery could take place as part of the 1,000 units communicated to be delivered to the Dutch partner IVE Ventures in 2023.
Key Events After the End of the Quarter
- iZafe, together with Atea Sverige AB, was awarded a contract in the procurement with the Västra Götaland Region for the provision of Dosell. The procurement covers between 1,800 and 2,250 units with an estimated value of 42–52 MSEK. The contract period is two years with the possibility of an additional two-year extension.
CEO's Comment
We look back on a quarter where our business plan and strategy have yielded results in both growth and successful major procurement, marking a significant milestone. An increase in net revenue by a staggering 583 percent compared to the same quarter the previous year, even considering a lower revenue base, is a clear indication of the positive trend we have established. This is the outcome of our dedication to refining our business model while maintaining a cost-effective structure.
Despite increased revenue, we have preserved our modest size, underscoring our determination to optimize every investment and talent within our team. This has been and will continue to be a central component of our ambition to avoid additional external capital and to maintain a cash flow that is both stable and proportionate to our growing income.
On the international stage, we have achieved significant progress, especially in Holland, where the implementation of the first 100 units of our product has been met with enthusiastic reception. It is a strong testament to the quality of our product and the customer journey our partner has crafted. This success is crucial as it forms the cornerstone of our ability to deliver at scale.
In Sweden, we have taken a significant step forward by winning a comprehensive procurement with the Västra Götaland Region, covering 47 municipalities. We are preparing to sign the contract in the coming days, a step that confirms our company’s growing influence and trust within the sector.
It is particularly heartening to see increasing interest from municipalities seeking effective and user-friendly alternatives to the more complicated and costly solutions they have used in the past. Our offering, Dosell, is at the forefront of this demand, and we are enthusiastic about more and more people recognizing its value.
With a plan for larger deliveries in both the Swedish and Dutch markets and expectations of other regions increasing their demand in the coming year, we stand on the threshold of a period of expansion. These prospects reinforce our focus on providing our partners and customers with unparalleled service and support.
Regarding Pilloxa, successfully integrated into our group over the past year, I am pleased to report significant progress. Our ongoing collaboration with the German pharmaceutical company Chiesi has paid off, with their team expressing deep satisfaction with our solution. Their positive view of our technology and its potential to change the lives of patients with rare diseases is a powerful affirmation of our work. Together, we strive to expand Pilloxa’s applications, aiming to broaden our impact across a wider spectrum of diseases and geographic markets.
Interest in both our service and the innovative pillbox is overwhelming, and we have received numerous inquiries that we are eager to address. We are carefully planning the next steps, with continuous improvements and adjustments to refine our service before launching it on a full scale. This work aligns with our overarching vision to contribute to a healthier future with the right medication at the right time, every time. It is with great satisfaction that I see Pilloxa’s offering not only complement but also reinforce our core vision of improving patients’ health and quality of life.
We close the year 2023 with strong and growing demand for our product, as well as a firm belief that our strategic direction and operational excellence will continue to bear fruit. I want to express my deepest gratitude to our board and employees for their tireless work and to our shareholders for their unwavering trust and support.
Thank you for being part of this exciting journey.
Anders Segerström
Chief Executive Officer, iZafe Group
