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iZafe Group AB (publ.) presents today, August 25, its report for the second quarter.

Financial Performance in Summary

  • Net sales for the quarter amounted to SEK 403 (84) thousand, a growth of 380% compared to the corresponding quarter last year. The increase in turnover can partly be attributed to organic growth, partly to growth through acquisition, when Pilloxa was acquired in December 2022. Excluding the turnover from the acquired company, the growth amounted to 198%. The quarter’s turnover consists of income attributable to the sale of the digital pharmaceutical robot Dosell and the sale of the medical device Pilloxa. Pilloxa AB was acquired on 28 November 2022 and is therefore not included in the quarter’s turnover for the previous year.
  • Operating profit for the quarter amounted to SEK -5,097 (-5,184) thousand.
  • Profit after financial items for the quarter amounted to -5,136 (-5,233) TSEK.
  • Cash flow for the period amounted to SEK -3,496 (-7,155) thousand.
  • Earnings per share for the quarter before / after dilution amounted to SEK 0.0 (-0.1).
  • Equity per share amounted to SEK 0.2 (0.4) at the end of the period.
  • The equity ratio at the end of the period amounted to 82.4 (81.8) percent. 

Significant events during the quarter

  •  iZafe has signed a cooperation agreement with Spanish Ti-Medi for the rights to sell and market the medication robot Dosell. Ti-Medi’s minimum commitment over a four-year period is worth at least SEK 12 million.
  • iZafe has signed a cooperation agreement with MDM Pulse for the right to sell and market the medicine robot Dosell in Portugal. MDM Pulse’s minimum commitment over a five-year period amounts to SEK 12.2 million to subsequently generate a recurring license income of at least SEK 4.2 million annually.

Significant events after the end of the quarter

  •  iZafe successfully completed all necessary technical integrations and adaptations to launch Dosell on the Dutch market. The company will now deliver 50 units for testing. After successful testing, the remaining 1,000 units will be delivered successively during the year.

Comments from CEO
I am pleased to share with you the latest progress and developments in our company during the past quarter. Despite an initially low turnover, our focus on the right strategies and measures has resulted in a positive increase in our turnover. This increase, although it may be modest, marks a turning point in the right direction. Together with our continuous effort to streamline and reduce costs, we now stand on a stable foundation.
I feel confident that the liquidity we obtained in March will be sufficient to bring us to a cash flow positive position. Our determination to optimize our finances and capital utilization has set us on this promising path forward. I would like to express my heartfelt thanks to you for your continued trust and investment in our company. Your faith in us has been a decisive factor in our success.
During the first half of the year, we communicated about several significant orders that lie ahead. Now our top priority is to ensure that the deliveries of these orders are carried out smoothly. One of our most challenging tasks is to deliver 1,000 units to the Netherlands before the end of this year. The first 50 units will be used to guarantee a seamless customer experience with our innovative solution, uniquely tailored to the needs of the Dutch market. The setup is a result of our joint work with investments from both the partner, Dutch IVE Ventures, and us, where IVE Ventures invested in a comprehensive system where Dosell has a key function. Tests are currently underway and are expected to be completed shortly. When potentially needed fine adjustments in the customized system solution are in place after feedback from the tests, we will gradually deliver the remaining units according to plan.
We also see positive progress in Spain, where plans are progressing as previously communicated. During Q2, an agreement worth minimum SEK 12 million over four years was secured, including 1,800 Dosell units. The Spanish partner Ti-Medi delivers today solutions to facilitate correct medication to over 650 pharmacies in Spain and Portugal. During the autumn, we are working intensively to adapt Dosell and the customer journey for the Spanish market, which will hopefully lead to an extensive launch during the first quarter of 2024.
Also in Italy we have worked further to develop our collaborations. Our partner has been working for some time to achieve a wider acceptance of sachets in the Italian market. They are currently conducting a funding round to secure the necessary capital to accelerate sales of our pharmaceutical robots along with their innovative sachets on a larger scale.
In the UK, we are on the verge of completing our first pilot, which is a milestone for us. This marks the start of gradually increasing sales that are expected to pick up from the turn of the year. The UK is a market with huge potential, and we foresee steady growth as the market matures.
In our home region, the Nordics, our work with municipalities in Sweden and Norway has yielded results. The decision to expand the use of Dosell within these municipalities is a clear indication that our product is appreciated for its simplicity, functionality and its ability to relieve care by ensuring correct medication at the right time. I am optimistic that we will see increasing demand also here in the Nordics during the autumn, and a positive trend that is expected to grow significantly in the coming year.
Our latest acquisition, Pilloxa, has added additional value to our portfolio. Our focus now is on ensuring customer satisfaction through smooth deliveries and maximizing the potential of our new customers. Going forward, we aim to merge our concepts into a world-unique concept that can help the patient at all stages; regardless of how they manage their medication, but right now our primary focus is on ensuring that Dosell deliveries to our partners around Europe.
In summary, we are stronger and more well prepared than ever. With a stable liquidity that is expected to bring us to a cash flow positive position, together with the majority of orders received and a growing demand, we are enthusiastically looking forward to the upcoming autumn. I am convinced that, together with my amazing team, we will be able to achieve outstanding results.
Again, many thanks for your invaluable trust as a shareholder.
Anders Segerström
CEO, iZafe Group

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