iZafe Group’s Year-end Report, October-December 2023

STOCKHOLM, SWEDEN / ACCESSWIRE / February 9, 2024 / iZafe Group (STO:IZAFE-B) iZafe Group AB (publ.) presents today, February 9, its report for the fourth quarter.

Financial summary:

  • Net sales for the quarter amounted to 679 (194) TSEK, a growth of 250% compared to the same quarter the previous year. The increase in sales is attributed to both organic growth and growth through acquisitions, as Pilloxa was acquired in 2022. The quarter’s sales consist of revenues related to the sale of the digital medication robot Dosell as well as sales of the medical device Pilloxa. Pilloxa AB was acquired on November 28, 2022, and therefore only partially included in the quarter’s sales for the previous year.
  • Operating profit (EBIT) for the quarter amounted to -20,475 (-5,556) TSEK. A one-time impairment of 15,234 TSEK related to excess values and goodwill arising from the acquisition of Pilloxa affects the result. The impairment is not cash flow-affecting. The impairment was made because the company decided to prioritize its resources for a limited period to scale up the distribution of the Dosell product in more markets.
  • Operating profit before depreciation (EBITDA) for the quarter amounted to -3,386 (-4,318) TSEK.
  • Result after financial items for the quarter amounted to -20,389 (-5,570) TSEK.
  • Cash flow from operating activities for the quarter amounted to -1,946 (-5,972) TSEK.
  • Earnings per share for the quarter before / after dilution amounted to -0.07 (-0.02) SEK.
  • Equity per share at the end of the period amounted to 0.1 (0.3) SEK.
  • The solvency ratio at the end of the period amounted to 73.2 (76.8) percent.

Significant events during the quarter:

  • iZafe entered into an agreement with Atea Sverige AB after winning a procurement with the Västra Götaland Region for the provision of Dosell. The procurement covers between 1,800 and 2,250 units with an estimated value of 42-52 MSEK. The contract period is two years with the possibility of an additional two-year extension.
  • iZafe received an official order for 1,000 units of Dosell from IVE Ventures (“IVE”) in accordance with the agreement announced on February 27, 2023. These units are produced as soon as possible and are expected to be delivered to IVE in February 2024.

CEO’s Comment:
It is with great pleasure and pride that I summarize another successful quarter and the eventful year 2023 for iZafe Group. Our journey from start-up to scale-up phase has been inspiring, and the result of our dedicated work and strategic direction.

During the year, we have successfully negotiated deals totaling an impressive amount of 106-124.7 MSEK over the next 4-6 years from 2024 onwards. The projected recurring revenue of 37 MSEK annually from the fourth year, with an impressive 90% margin, underscores the strength of our business model and provides a clear indication of the stability and profitability we are now achieving. Increasing our net sales by 150% compared to the previous year in the full year 2023 is a clear signal that business is starting to gain momentum.

One of the highlights of the year was our successful procurement win with the Västra Götaland Region together with ATEA. The win means that Dosell will, for the first time, become a prescribed medical device, allowing 46 municipalities to incorporate Dosell into their operations. This success will enable everyday life, security, and quality of life to be enhanced for as many as 1,800-2,200 users, as the procurement includes the same number of Dosell units. Additionally, all relatives who feel reassured in ensuring the right medicine at the right time, as well as valuable time for healthcare professionals, can be spent on other than medication sorting, thanks to Dosell. The procurement is expected to generate a value of 42-52 MSEK and further strengthen our position and trust in the Swedish market.

On the international stage, we have established important partnerships, including the exclusive cooperation agreement with IVE Ventures in the Netherlands. Just before the turn of the year, the first order for 1,000 units was placed, with a commitment to at least 1,000 Dosell annually for three years and a total value of approximately 16 MSEK. We look forward to delivering these 1,000 units in the first quarter of this year. The order to IVE is a clear sign of our increasing influence and success in the European market.

We continue to drive our partner strategy for smooth scalability and sustainable revenue. Our partners are key to our expansion, and our business model with hardware sales, recurring license fees, and cost efficiency enables a stable and continuous revenue stream.

The growing interest from our partners has allowed us to set higher demands and pressure our existing partners to achieve desired volumes. Over the coming year, this trend will intensify, and our focus will be on partners with significant commitments. At the same time, we are evaluating which collaborations should be terminated considering that we operate in different size segments and therefore cannot deliver according to our requirements.

Our successful investment in Dosell has opened up new opportunities, and we plan to increase pressure on the market with higher volumes. This temporarily means reduced focus on Pilloxa, resulting in the need for write-downs regarding excess values and goodwill arising from the acquisition. This adjustment is necessary to ensure a stable financial foundation and good results in the future. I look forward to further developing Pilloxa to its full potential once we have taken Dosell to levels that provide the group with the financial conditions needed.

I would like to extend a warm thank you to our employees, board, and shareholders for your continued support and trust. Together, we look forward to a continued exciting journey characterized by growth and innovation.

Thank you for being an active part of our journey.

Anders Segerström
Chief Executive Officer, iZafe Group

Contacts

Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12

iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm

E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group

About iZafe Group AB (publ.)

iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.

The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company’s solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.

The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.

iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. Mangold Fondkommission AB is the company’s Certified Adviser. Further information is available at www.izafegroup.com

This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-09 08:30 CET.

Image Attachments

Q4 2023 Bild

Attachments

Interim Report Q4 2023
Q4 intervju

SOURCE: iZafe Group

View the original press release on accesswire.com

Staff

Recent Posts

Daily Fit Notes Rolls Out Affordable Fitness Solutions for the Modern Lifestyle

Daily Fit Notes, founded by Justin Brey in New York, launches a text-based subscription fitness…

2 days ago

WillowWood Rebrand by DD.NYC Wins Gold Anthem Award for Product and Innovation in 2024 Rebrand

MT. STERLING, Ohio, Dec. 20, 2024 /PRNewswire/ -- WillowWood, a global leader in prosthetic solutions,…

2 days ago

Quantum Biopharma Announces Closing of Second Tranche

TORONTO, ON / ACCESSWIRE / December 20, 2024 / Quantum BioPharma Ltd. (NASDAQ:QNTM)(CSE:QNTM)(FRA:0K91) ("Quantum BioPharma"…

2 days ago

Glow Lifetech Announces Completion of Final Payment under Swiss Pharma Share Exchange Agreement and Debt Settlement

Toronto, Ontario--(Newsfile Corp. - December 20, 2024) - Glow Lifetech Corp. (CSE: GLOW) (OTC Pink:…

2 days ago