Navamedic ASA: Q2 and first half 2020 financial results

OSLO, Norway, Aug. 20, 2020 /PRNewswire/ -- Navamedic ASA (OSE: NAVA) grew revenues by 5.5% in the first half of 2020 compared to the same period last year. The company reported revenues of NOK 42.1 million in the second quarter of 2020 with an EBITDA of NOK -2.1 million, affected by Covid-19. Navamedic continued to strengthen its growth platform in the period and reiterates its mid- to long-term ambition of building a NOK 500 million company.

"In the first half of the year, we took important steps as a pureplay Nordic pharma company targeting growth in Northern Europe. We continued to grow our portfolio of existing products, added exciting new products to our pharmacy and hospital offering, and expanded products to new geographies. We are pleased to see the uptake of products like Mysimba and Alflorex, both solid examples of our portfolio's attractiveness, the value of our local expertise and strong relationships with customers and patients," says Kathrine Gamborg Andreassen, Chief Executive Officer of Navamedic, and continues.

"During the period, we have also worked to manage the Covid-19 situation and limit effects on supply and demand as a result of the pandemic. In the second quarter, we experienced some lower sales across our product categories, and volatility for Imdur®. We took immediate action to handle the situation, in parallel to making strategically important growth investments in our organization and platform. We are overall pleased to see that our efforts have paid off."

One of the key events in the period was the acquisition of marketing authorizations for a series of antibiotics for hospital use in the Nordics, in a transaction which was completed on 4 August 2020. The transaction adds a tender-based annual turnover of approximately NOK 25 million to Navamedic's portfolio and marks the beginning of a long-term collaboration with a solid European supplier. Another important event was the signing of a long-term exclusive distribution agreement for ThermaCare® in the Nordics and in the strategically important Dutch market.

"We execute on our growth strategy by securing and increasing value through ownership to products and brands, and we will launch products in at least one country in each launch window going forward. We are continuing our growth journey with a mid- to long-term ambition of building a NOK 500 million company with strong gross margins and underlying profitability," says Gamborg Andreassen.

Revenues in the second quarter of 2020 were NOK 42.1 million (47.2 million in the second quarter of 2019). The gross margin was 34.8% (34.4%), while the EBITDA was NOK -2.1 million (0.9). Result before tax in the second quarter of 2020 was NOK 0.4 million (-0.9). In the first half of 2020, revenues were NOK 97.8 million (92.7), while EBITDA was NOK -1.4 million (1.4).

Navamedic is hosting a webcast presentation of the second quarter and first half 2020 financial results, Thursday 20 August at 08.30 CET. Due to the Covid-19 situation, the presentation will only be held as a live webcast, on www.navamedic.com/investors/financial-results. Representatives from Navamedic will be CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand.

EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the attached second quarter and first half 2020 presentation on slide 19.

For further information, please contact:

Kathrine Gamborg Andreassen, CEO, Navamedic
Mobile: +47 951 78 680
E-mail: kathrine@navamedic.com

Lars Hjarrand, CFO, Navamedic
Mobile: +47 917 62 842
E-mail: lars.hjarrand@navamedic.com

About Navamedic

Navamedic ASA is a Nordic pharma company and reliable provider of high-quality products, delivered to hospitals and through pharmacies, meeting the specific needs of patients and consumers by leveraging its highly scalable market access platform, leading category competence and local knowledge. Navamedic is present in all the Nordic countries, the Baltics and Benelux, with sales representation in the UK and Greece. Navamedic is headquartered in Oslo, Norway, and listed on the Oslo Stock Exchange (ticker: NAVA). For more information, please visit www.navamedic.com

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

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