OssDsign - Growth despite COVID-19 headwinds
+37% organic growth y-o-y / +4% q-o-q An eventful and transformative quarter Lined up for an exciting 2021 Sales SEK 1. 7m below ABGSCe due to COVID-19 OssDsign delivered Q4’20 sales of SEK 6. 8m (-20% vs. ABGSCe), growing 33% y-o-y (+38% organic, -8% FX), and +4% q-o-q despite the resurge of the COVID-19 pandemic.
Similar to the trends we saw in Q3’20, Europe continues to outperform where Germany and France drove 81% organic y-o-y growth for the region. The more profitable US region however declined 9% y-o-y due to COVID-19. We estimated sales of SEK 0.
7m stemming from Japan, but the planned Q4’20 launch of OssDsign Cranial in the region has been delayed due to COVID-19. With sales volumes below our expectations and the relative strength in Europe (~63% of Q4’20 sales), the quarterly EBIT of SEK -25m came in 15% below our estimates. OssDsign ended the quarter with a cash position of SEK 49m (vs.
SEK 54m in Q3’20), supported by the ~SEK 65m equity raise following the Sirakoss acquisition in November 2020. Solid underlying developments We were hoping that the Q4’20 report would provide more detailed information regarding the launch of OssDsign Cranial in Japan, progress in establishing a distribution partner in France and regulatory status for OssDsign Facial. Nevertheless, the acquisition of Sirakoss was a transformative event for OssDsign, and the newly added bone graft substitute remains on track for first US sales in H2’21.
We also note that OssDsign now has completed the expansion into new corporate headquarters, with modern and larger production facilities allowing for benefits of scale. Expecting improvements for an exciting 2021 OssDsign finished a challenging 2020 with an impressive 49% y-o-y organic growth. While COVID-19 remains an uncertainty, the ongoing vaccination programme supports OssDsign’s expectations of improvements of the situation during 2021.
We expect more details on the webcast today at 10:00 CET, can be followed via the link https:.
