Hofseth Biocare ASA: HBC First Quarter 2018 Financial Report

Hofseth BioCare ASA (HBC) had sales revenues of NOK 14.8m (6.4m) in the first quarter of 2018. Operational profit (EBITDA) for the first quarter 2018 was negative NOK 14.9m (-15.5m, adjusted for one-off sales of buildings in Q1/17).
 
Cash flow from operations during the first quarter was negative by NOK 11.7m compared to negative NOK 17.1 in the sOame quarter last year. Cash and cash equivalents ended at NOK 23.8m by the end of the period.
 
HIGHLIGHTS
- Attended FI Europe trade show with new customer leads in new industries. Sales to new customers, both in the human and pet food markets
- The company has released its fifth ingredient, CollaGo(TM), a Salmon Collagen Tripeptide, with more that 25 % collagen Type I & III. The product will mainly be sold in the US market
- Strong increase in sales revenues compared to the first quarter 2017 and continue to deliver positive gross margins.
- Approved plans at Midsund municipality for future expansion of the Midsund plant.
- Further improvement on PetGo(TM) yields after process adjustments done in April 2018.
- Started the second phase testing on HBC's Salmon peptides to treat enterocolitis in neonate babies and sarcopenia in geriatric patients, at the Stanford School of Medicine in California.
 
OUTLOOK
- The Company is increasing intake of salmon raw material, resulting in higher gross margins, and expect positive EBITDA during the third quarter.
- New customers within the human nutrition industry are currently placing long term orders for shipments from summer and onwards. The new contracts, combined with existing shipment program is expected to have positive effects on our results in 2018. Shipments includes both ProGo®, CollaGo(TM) and CalGo®.
- Increased average price gain on OmeGo® after multiple orders on Brilliant Salmon Oil for pets, human nutrition contracts, and higher pricing for our salmon oil to feed customers.
 
HBC processed 2,662 metric tons (2,187MT) of salmon and trout raw material in the quarter, resulting in 1,092MT of finished goods.
 
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, Palo Alto 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 - Q1 2018 Financial Report