Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Instrument unit sales grew 17% year over year, reflecting a strategic focus on growing the install base.
- 5-part instrument sales more than doubled, indicating strong market demand for this technology.
- Operating expenses were reduced by 47% due to restructuring initiatives, improving cost efficiency.
- Positive operating cash flow of 2.9 million SEK was achieved, marking a critical milestone.
- Strengthened executive leadership team with expertise in R&D and project execution to support strategic transformation.
Negative Points
- Organic sales declined by 3.3% compared to the previous year.
- Gross margin declined to 38.7% from 43.1% due to a lower average selling price and product mix.
- Consumable sales were 12% below last year, largely due to delayed payments and shipments.
- Operating margin decreased to 4.5% from 7.2% last year, impacted by lower sales and gross margin.
- Geopolitical instability and a weakening US dollar negatively affected financial performance.
Q & A Highlights
Q: About the gross margin and the sales price for the third part instruments, is this a new normal or how should we see this? Lower ASP.
A: Torben Nielsen, Chief Executive Officer: It is part of a new normal. We have taken a more focused approach to building up our install base, and consequently, we are having to be more aggressive on our pricing on the instruments. However, we are also seeing market prices deteriorating, possibly as a temporary measure to overcome geopolitical challenges. We should expect a lower ASP in general, especially on the entry-level 5-part instruments, which is RM 51. This is partly a new normal and partly a temporary reaction to the geopolitical situation.
Q: But you don't see further deterioration in ASP going forward. Do you see a risk of further deterioration?
A: Torben Nielsen, Chief Executive Officer: At this point, I do not see a risk of further deterioration. We have stabilized at a slightly lower level than historically on the 5-part instruments. The impact is amplified by significantly increased unit sales. The 5-part market price in the entry-level segment is stable at the current level. It may bounce back slightly upwards as the market normalizes over the coming quarters, but for now, I expect it to be stable.
Q: What are the main challenges in the US and LATAM markets?
A: Torben Nielsen, Chief Executive Officer: In these markets, high competitive pressure and lack of portfolio fit are the main challenges. We are focusing on strategic growth in these areas to overcome these issues.
Q: How did the geopolitical instability affect the quarter?
A: Torben Nielsen, Chief Executive Officer: The geopolitical instability led to longer supply chain lead times and delayed payments from key customers due to bank restrictions. This resulted in a larger than usual backlog.
Q: Can you elaborate on the strategic focus for future growth?
A: Torben Nielsen, Chief Executive Officer: We are focusing on growing our install base as a way of investing in future reagent business growth. This includes strengthening our executive leadership team with expertise in R&D and project execution, and validating new instruments for both human and veterinary portfolios.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
