Photocure (PHO) Q2 2024 earnings summary

Executive summary

• Product revenue grew 6% year-over-year in Q2 2024, with positive EBITDA and strengthened cash position; unit sales were level compared to Q2 2023, and year-to-date unit sales up 3%.

• Raised guidance for Saphira tower placements to 55-70 for 2024, reflecting strong U.S. momentum and successful rollout of the ForTec mobile strategy; Saphira now 46% of U.S. rigid installed base.

• Priority growth markets in Europe, especially the UK and Italy, delivered double-digit growth, with Germany showing strong upgrade-driven performance; European H1 unit sales up 4% despite Q2 order fluctuations and strikes.

• Strategic partnerships with ForTec and Richard Wolf aim to expand access and develop new flexible blue light cystoscopy systems, with a 24-30 month development period.

• Regulatory submissions for Hexvix and Cevira in China and potential EU and U.S. filings are expected to yield milestones and royalties in 2025.

Financial highlights

• Q2 total revenue reached NOK 145.4 million, with Hexvix/Cysview contributing NOK 122.4 million; H1 2024 revenues were NOK 263.5 million, up 5%.

• EBITDA for Q2 was NOK 27.8 million (NOK 29.2 million excluding business development expense), up from NOK 23.4 million in Q2 2023.

• Net profit for Q2 was NOK 12.3 million, compared to NOK 4.3 million in Q2 2023.

• Net cash flow from operations in Q2 was NOK 19.5 million; cash balance at quarter-end was NOK 267 million.

• Equity at quarter-end stood at NOK 500 million, representing 70% of total assets.

Outlook and guidance

• Maintains 2024 product revenue growth guidance of 6%-9% (constant currency) with positive EBITDA.

• Raised Saphira tower placement guidance to 55-70 units for 2024, including upgrades.

• Expects strong second-half performance in Europe, supported by Olympus launch and ongoing upgrades.

• ForTec mobile tower rollout anticipated to build momentum in H2, though specific growth contribution not yet quantified.

• Regulatory milestones in China and EU for Hexvix and Cevira expected in 2025.