Hofseth BioCare ASA: HBC Fourth Quarter 2017 Financial Report

Hofseth BioCare ASA (HBC) had operating revenues of NOK 118.5m (20.2m in 2016) in 2017 and operational profit of minus NOK 11.2m (negative 144.6m). Equity ratio was 20.1% (33.6%).
In the fourth quarter, HBC had operating revenues of NOK 26.4m (3.1m) in the fourth quarter of 2017. Cost of Goods Sold (CoGS) amounted to NOK 19.8m (8.2m) in the period. Operational profit (EBITDA) for the fourth quarter 2017 was negative NOK 6.6m (negative NOK 12.9m).
Cash flow from operations during the fourth quarter was negative by NOK 23.0m, mainly due to increased trade receivables and payables, compared to positive NOK 1.0 in the same quarter last year. Cash and cash equivalents increased by NOK 12.3m during the quarter, leaving total holding of cash and cash equivalents at NOK 42.1m by the end of the period.
Total equity amounted to NOK 37.1m (NOK 53.6m) giving an equity ratio of 20.1% (33.6 %) for the group.
- In October, HBC attended the trade show FI Japan in Tokyo together with our partner Alliance Seafood.
- In November, HBC signed a new financing facility of NOK 35m to secure working capital for increased sales and production.
- 69 % increase in overall production in the fourth quarter, due to better utilization of the Berkåk plant capacity
- New production methods developed to increase protein yields have been developed and implemented
- Attended FI Europe trade show with new customer leads in new industries
In the fourth quarter 2017 HBC Midsund processed 2,764 tons of salmon raw material, which equals that the Midsund plant processed in total 9,230 tons of raw material in 2017.
In the fourth quarter 2017, 1,124 tons of finished goods in total were manufactured at all HBC plants, compared to 665 tons in the third quarter. This gives an increase of 69 per cent compared to the previous quarter. Reasons for the increase are higher yields, increased capacity, and tall manufacturing at Berkåk. These numbers are expected to increase further for 2018.
For further information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no
Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no
About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.
Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
HBC - Q4 2017 Financial Report