Navamedic ASA published their Q1 2022 trading update Tuesday 10th of May. The company reports overall solid financial results for the first quarter, including revenue growth of 7.4% compared to the corresponding period last year and a strong gross margin of 39.4%.
Navamedic’s 12 months rolling revenue grew 33% y/y to NOK 283 mill in the first quarter, and the company has delivered positive rolling 12 months EBITDA for five consecutive quarters. Gross margin was 39.4 percent in the first quarter, unchanged compared to the corresponding period in 2021. EBITDA was NOK -0.4 mill compared to NOK 2.6 million in the first quarter last year. The reduced EBITDA was a result of increased marketing spend related to launches of new products.
“We had a solid first quarter with continued growth driven by new product launches and strong development for existing products within medical nutrition, consumer health and branded generics. Our type of business will always experience some volatility in revenue growth from quarter to quarter due to pipeline effects, and in the first quarter, we experienced a temporary halt in the supply of our obesity product Mysimba. These supply challenges have been resolved and we will receive delivery of Mysimba in May. We are still on track to meeting our target of 20% annual organic growth for 2022 and onwards,” said Kathrine Gamborg Andreassen, CEO of Navamedic.
“We have proven our growth model over time and continue to deliver on our ambition to untap the full potential of our existing portfolio, enter into new distribution agreements, develop new brands and do bolt-on acquisitions of products and portfolios. Today we announce an updated mid-term ambition of becoming a NOK 1 billion revenue company,” said Kathrine Gamborg Andreassen.
“In the first quarter we successfully launched SmectaGO®, an innovative on-the-go product for treatment of diarrhea, and we target the launch of at least one new product in one of our countries in each launch window,” said Kathrine Gamborg Andreassen.
Navamedic also continues to execute on its M&A strategy. In May 2022 the acquisition of Impolin AB was announced, which strengthens Navamedic’s position in the market for obesity treatment. Impolin’s portfolio consists of products with a strong position in Sweden, and Navamedic’s ambition is to launch Modifast, a range of diet and meal replacement products, in Norway in 2023, followed by rollout in Finland and Denmark.
