Enzymatica - Global footprint driving growth
Sales +91% y-o-y for a positive EBIT margin of 4% Geographic expansion continues with new partnerships We expect operating leverage to bring profitable growth Q4: Impressive sales growth of 91%, 2% above ABGSCe In the seasonally strong Q4, Enzymatica generated sales of SEK 42. 3m (+2% vs. ABGSCe of SEK 41. 6m) for 91% y-o-y growth.
Direct sales markets in Sweden and Denmark continued to decline as hygiene and social distancing led to fewer cases of the common cold. ColdZyme continues to show resilience in the market downturn, with an R12m Swedish market share of 7. 1% (7.
0% in Q3’20). Enzymatica received orders for launches in several markets through the expanded agreement with STADA and Sanofi’s launch of ColdZyme in France and Italy. The gross margin of 61.
4% came in below ABGSCe of 72. 9%, driven by the majority of sales coming from distributor markets. Paired with solid cost control, the strong gross margin led to adj.
EBIT of SEK 0. 9m (vs. ABGSCe of SEK -0.
2m). Solid cost control led to EBIT of SEK 1. 8m (-52% vs.
ABGSCe SEK 3. 7m). Operating cash flow was SEK -8.
2m, and Enzymatica ended the quarter with a cash position of SEK 24. Set for geographic expansion across ~50 distributor markets Enzymatica generated 82% y-o-y growth in FY’20, primarily driven by intense geographic expansion via distribution partnerships. Two new partnerships were announced in the quarter: a further expanded agreement with STADA into the Nordics and a deal with MS Pharma for the MENA region.
Enzymatica now has distributor agreements for ColdZyme in ~50 markets and the product is currently sold in ~30 markets across three continents. Several large market opportunities are set for launch in 2021/2022 such as Japan, China and the MENA region. EV/sales of 12-7x ‘21e-‘23e for a 31% sales CAGR ’20-‘23e We raise our sales estimates for ‘22e on the back of additional distribution agreements.
We also trim our gross margin assumptions owing to the increasing share of distributor sales as.
