WSE: Bioton – (Last valuation: 5.34 PLN/share as of 20.04.2023)
Aa
Share
1Q23 results - high base a year ago, neutral
Revenues in 1Q23 amounted to PLN 34.4 million (-31% y/y), EBITDA PLN 11.2 million (+29% y/y), EBITDA adjusted for the balance of other operating activities PLN 11.1 million (+38% y/y), net result PLN -0.1 million (vs. PLN -3.1 million in 1Q22). The main impact on the decrease in sales in 1Q2023 compared to 1Q2022 was lower sales of insulin on international markets (mainly China, Vietnam and Libya) and on the Polish market - in 1Q2022 there were additional sales related to the conflict situation in Ukraine in the amount of PLN 5.3 million. On the other hand, the company achieved an increase in sales of products in the area of oral anti-diabetic drugs and in the area of gastrology. The main influence on the percentage increase in gross sales margin was the change in the sales structure between Poland and foreign markets, as well as the receipt of PLN 5.2 million in aid in connection with the increase in electricity and natural gas prices. Operating cash flow in 1Q23 was +3.2 million PLN (vs. +3.6 million PLN a year ago), and CAPEX was 5.3 million PLN. Net debt at the end of 1Q23 amounted to PLN 71 million according to our estimates (vs. PLN 67 million at the end of 2022). No new information on the analog project in the report. Neutral.
Revenues
Revenues in 1Q23 amounted to PLN 34.4 million (-31% y/y) due to declines in domestic and export insulin sales. The company notes that there were additional sales in 1Q22 related to the conflict situation in Ukraine in the amount of PLN 5.3 million. Sales of insulin in the main export market - China amounted to PLN 0.4 million vs. PLN 15.2 million in 1Q22, which we attribute to a large stocking of this market last year. On a positive note, we see an increase in sales in the area of other products - it amounted to PLN 8.6 million (+22% y/y).
Operating profit and costs
Gross profit on sales in 1Q23 amounted to PLN 19.7 million (+26% y/y), and the margin increased from 31% to 57% due to a higher share of more profitable domestic sales and the receipt of PLN 5.2 million in public aid due to increases in electricity and natural gas prices. Selling, general and administrative expenses totaled PLN 16 million (vs. PLN 14.6 million in 1Q22, +9% y/y). EBITDA in 1Q23 was PLN 11.2 million (+29% y/y), EBITDA adjusted for the balance of other operating activities was PLN 11.1 million (+38% y/y), net income was PLN -0.1 million.
Last valuation: 5.34 PLN/share as of 20.04.2023. Price on the day of issue 3.54 PLN.
Krzysztof Radojewski
Deputy Head of Research and Advisory Department
