iZafe Group AB (publ.) - today April 29, releases its Q1 Interim Report.
Summary of financial performance
- Net sales for the quarter amounted to SEK 376 (172) thousand. Sales for the quarter consist of revenues attributable to the sale of the digital medication robot Dosell.
- Operating profit for the quarter amounted to SEK -6,984 (-7,219) thousand.
- Profit after financial items for the quarter amounted to -7,032 (-8,891) TSEK.
- Cash flow for the period amounted to SEK -6,987 (10,789) thousand. The positive cash flow for the comparison period is primarily a result of a short-term loan that was taken up.
- Earnings per share for the quarter before / after dilution amounted to SEK -0.1 (-0.3).
- Equity per share at the end of the period amounted to SEK 0.5 (0.6).
- The equity/assets ratio at the end of the period was 80.8 (52.2) percent.
Important events in the quarter
- The company produces and delivers 450 Dosell units to partners.
- Dosell Consumer is marketed in campaigns in Sweden's largest TV channels.
- The company's Italian partner Sempli Farma starts the commercial phase.
- 14 new municipalities start the implementation of Dosell with the ambition to increase the number after evaluation and planning.
Comments from the CEO
Our vision is to make it easier for people to take the right medicine at the right time, and therefore our business model is based on integrating our products and services with so-called welfare platforms. The purpose of integrating into welfare platforms is that our data should be combined with data from other sensors to demonstrate the health effects of the right use of medicine. We also want to simplify the introduction and use of digital aids to minimize the number of systems to work with.
I’ve been talking about entering the exciting part where the company has become ripe for a commercial phase with a substantial sale for a long time. During the first in the quarter of 2022, this has finally happened, and it is with pleasure that we are well on our way to achieve more extensive sales in all our markets and in both B2B and B2C channels.
B2B – from ensuring routines to broader sales in the Nordic region
From the time we finished Dosell 2.0 and our partners in the Nordic markets had time to undergo extensive testing to finally give their approval in the fourth quarter of last year, it is gratifying that the commercial phase has now begun. Together with our partners in Sweden and Norway in particular, we’ve now started to introduce our medication-dispensing robot in the municipalities that want to digitize and modernize healthcare with the help of a digital welfare platform and our Dosell.
This also takes time, but it is gratifying that we have now started the implementation with such a large number of municipalities as 14. The process is designed so that the municipality brings in a smaller number of Dosells to begin with to ensure all new processes and routines. During the implementation, we go through a checklist together to ensure that after one to three months all parts from the checklist are put in place. Once this is done and approved, the municipality can then introduce Dosell on a broader front with a larger number.
B2C – good results from TV advertising in Sweden and commercialization in Italy
To compensate for the lengthy processes for introducing Dosell in municipalities, we have launched our consumer version of Dosell in Sweden, which enables safe medical use for anyone who multi-medicates. It is clear that Dosell helps people of all ages and life situations, gives the relatives calmness and improves compliance. In order to spread the awareness of Dosell, we’ve invested heavily in TV advertising in Sweden to reach out widely to the target group. The TV campaign has been a success since it has increased the awareness for medicinal robots as a concept and increased the brand awareness for Dosell, and we have also seen that our business-to-business sales have profited from the marketing campaign.
In our second consumer market, Italy, our partner has created a team that actively works with sales to 20,000 pharmacies in Italy where Dosell is the final component of the overall Sempli Farma concept. In this concept, the user receives their medications packed in sachets directly in their local pharmacy, while compliance with the medication can be checked and statistics obtained.
Increased understanding of medication errors and future possibilities
In the beginning of April, our founder and Dosell's inventor Göran Sjönell visited TV4's morning program Malou Efter Tio, where Göran highlighted the problems of medication errors. In Europe, 200,000 people die annually as a result of poor compliance, which entails costs of €128 billion and, of course, great suffering for users and their relatives. It’s becoming obvious that in order to ensure quality healthcare and keep the citizens healthy for as long as possible at home, we need a society that digital aids are put in place.
In the future, we will also look at further solutions of how we can ensure safe medical use in other ways than just patients who have their medicine packaged on sachets. We still believe that sachets are the safest way to get their medications delivered, but we need to broaden our range to be able to help everyone who multi-medicates. In Europe, there are about 179 million people that takes minimum five prescription medications per year.
Reduced costs and increased sales
During the quarter, we reduced our costs while increasing sales compared to the previous quarter. We increased the number of customers with active subscriptions with 37 percent and we cut costs despite investments in TV campaigns and social media campaigns. During the quarter, we’ve further developed our product and we plan to develop our product offering continuously to ensure that we are at the forefront of the digitalization of medication. It’s in our strategy to first get proof of the concept in our home market and in the markets where we already have established partners, before expanding our business to further markets focusing on Europe. We see that the expansion is in relative proximity as we have started dialogues with interested partners in new markets.
In the first quarter of 2022, iZafe has continued to take important steps to realize our vision. In our B2B channel, we continued to build on the Nordic markets and our B2C sales are now available in both Sweden and Italy. With this strong base, we look forward to an exciting continued 2022.