Stockholm, Sweden – iZafe Group AB (publ.) (NASDAQ First North: IZAFE B) – today November 9, releases its Q3 Interim Report.
Condensed statement of financial performance
- Net sales for the quarter totaled SEK 701 thousand (3,344). Sales for the quarter comprise revenue related to the sale of Dosell. In previous years, this item also included revenue attributable to the iZafe Security business area, which was sold.
- Operating profit for the quarter totaled SEK 7,255 thousand (-4,028) including one-off effects related to the sale of iZafe AB. Excluding the sale of the Security business area the operating was SEK -6,745 thousand (-4,028).
- Operating profit for the quarter totaled SEK 7,103 thousand (-4,130) including one-off effects related to the sale of iZafe AB. Excluding the sale of iZafe Security, earnings after financial items totaled SEK -6,897 thousand (-4,130).
- Cash flow for the period was SEK 8,818 thousand (-456), as a result of the payment received for the sale of iZafe AB.
- Earnings per share for the quarter, basic and diluted, totaled SEK 0.2 (-0.2).
- Equity per share at the end of the period was SEK 1.1 (1.4).
- The equity ratio at the end of the period was 87.4 percent (51.7).
Significant events during the year
- iZafe Group sold the Security business area, thereby creating a dedicated and financially strong Life Science company focused on the Healthcare business area and the Dosell medication dispensing robot.
- Following a successful pilot project in Norway, iZafe’s partner Doro Care AS placed an initial order for 50 medication dispensing robots.
- iZafe’s Italian partner has initiated an operational phase at a pharmacy in the Trento region, where equipment that packages medications in sachets has been installed.
- A pilot project was initiated with the care service provider Attendo. The goal of the project is to produce documentation for decision-making regarding the potential implementation of the Dosell medication dispensing robot for use in Attendo’s home services business.
- A pilot project was initiated with the care service provider TioHundra AB involving 30 medication dispensing robots. The results will provide a basis for identifying areas where welfare technology can contribute to more efficient, safer operations at TioHundra in Norrtälje Municipality, Sweden.
- iZafe published a patent application that the company submitted relating to the further development of the Dosell medication dispensing robot. The application is international and will enable iZafe Group to have patents approved in over 150 countries.
Comments by the CEO
At the beginning of the quarter the sale of iZafe Security closed successfully, thereby freeing up the resources needed to accelerate commercialization and globalization of the Dosell medication dispensing robot. The sale was carried out after the iZafe Group Board of Directors conducted an evaluation to determine how the current organization and product offering could ultimately result in profitability and a return on investment. Together with management, we concluded that iZafe should become a dedicated Life Science company, for which reason the decision to sell the safety and security business was a logical step in the process.
A dedicated Life Science company based on Dosell has the best prospects for growth. Through future investments in the product and market, combined with an organization that focuses solely on one business area, we become a strong participant on a rapidly growing market in Sweden and abroad.
I am pleased with the way that we have maintained our close contacts with customers and partners despite the coronavirus pandemic and interest in Dosell and our technology has increased as a growing number of decision-makers and opinion leaders have recognized the importance of digitalization within health services and elderly care. However, like most other participants in the market, we have noted that purchasing decisions and deployment have taken longer since health services and society have been forced to prioritize where time should be spent. Globalization has its challenges in that we have not been able to visit new markets in person. Net sales for the quarter totaled SEK 701 thousand (3,344), relating exclusively to revenue attributable to Dosell. The corresponding period last year also included revenue attributable to the iZafe Security business area, which was sold. Operating profit for the period totaled SEK 7,255 thousand (loss: -4,028) including the one-off effect related to the sale of iZafe Security. Excluding the sale, the operating loss was SEK -6,745 thousand (loss: -4,028).
Our business with our Norwegian partners has continued according to plan and we have seen favorable commercial development for Dosell in Norway. We have completed the validation of sachets in Finland and look forward to the upcoming first pilot project. On the Swedish market, an important milestone was achieved when we launched pilot projects with care service providers Attendo and TioHundra. The projects enable us to demonstrate the possibilities that Dosell represents regarding facilitating and creating safer medicine dispensing within the home help services and personal assistance business area in Sweden.
Collaboration within the framework of the Sempli Farma project in Italy has increased sharply after the total lockdown that Italy imposed last spring. Marketing of the concept has begun with Dosell occupying a prominent position. We look forward to the developments in Italy with great excitement and we can conclude that the consumer version of Dosell that is being launched there also has great potential in other markets. We have also noticed strong interest in Dosell from other countries, especially the UK and Germany.
After the end of the quarter a submitted patent application relating to further development of Dosell was published, which will enable us to achieve our ambition to create a healthcare setting at home through Dosell and the Dosell app.
Given current trends in society and our strong position, I am confident that we will be able to continue to launch and commercialize Dosell in our markets.