LUND,
Sweden, July 18, 2024 /PRNewswire/ -- The Board
of Directors of Enzymatica AB (publ) has decided to update the
company's financial goals. The background is that the company will
likely develop the company's business model, so that in addition to
being a producer of consumer products, Enzymatica will also become
a supplier of enzyme formulations. The new business model is
estimated to yield a higher EBIT margin, but lower net sales
compared to the calculations that were the basis for the previous
financial targets.
In November 2021, Enzymatica's
board decided that the company's financial goal would be a net
turnover of at least SEK 600 million
and an EBIT margin of at least 28%, which would generate
approximately SEK 170 million in EBIT
at the end of 2026.
"The last year's great scientific progress with fantastic
results both in-vivo and in-vitro has attracted substantial
international interest. During the spring, we held discussions with
several potential partners and realized that some potential
partners want to control the production stage to a greater extent.
This applies above all to markets at a great geographical distance
from our contract manufacturer in Spain. Therefore, we will offer partners to
buy the enzyme from Enzymatica but manage the final production
themselves. Such a business model would affect the existing
financial targets and therefore we choose to start work on updating
them. We want to ensure that we make long-term correct decisions,
rather than trying to meet short-term goals," said Bengt
Baron, Chairman of the Board of Enzymatica AB.
A new business model would mean that the company gradually moves
from solely producing consumer products to also becoming a supplier
of enzyme formulations, based on the barrier technology that is
being successfully used in ColdZyme. By signing agreements with
leading players in major cold markets such as China, Japan
and the USA, the products can be
produced in the respective markets, instead of, as is the case
today, via a contract manufacturer in Spain. In this way, long transports of the
finished product can be avoided, which becomes more cost-effective
and also extends shelf life in stores. Such a model could also
facilitate the approval process with local authorities and offer a
more profitable business model for Enzymatica's partners. In
addition, it gives Enzymatica a higher EBIT margin, while
maintaining control over the company's barrier technology through
patent protection, scientific insights and knowledge of the
production process.
"The gradual transition to the new business model will affect
net sales and EBIT margin. Enzymatica is in a very dynamic time
with the completion of important independent scientific studies,
MDR certification, regulatory developments, partner negotiations,
as well as the plans for an alternative business model. The board
is therefore still convinced that the previous absolute EBIT target
of approximately SEK 170 million will
at least be reached. Given that negotiations with new potential
partners takes time, the goal will be postponed until 2027. The
goal for net sales will be announced at a later stage, once
discussions with partners have evolved", said Bengt Baron.
This information is information that Enzymatica is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out below, at 08:15
a.m. CET on July 18,
2024.
For more information, please contact:
Claus Egstrand, Chief Executive Officer, Enzymatica AB
Phone: +44 7780 22 8385 | Email: claus.egstrand@enzymatica.com
Bengt Baron, Chairman of the Board,
Enzymatica AB
Phone: +46 (0)708 59 30 09
This information was brought to you by Cision
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https://news.cision.com/enzymatica-ab/r/enzymatica-s-board-of-directors-updates-the-financial-targets,c4016236
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