During the fourth quarter,
Hofseth BioCare laid plans for a reorganized and more effective
sales process as well as an expansion of the Midsund plant.
Hofseth BioCare ASA had
operating revenues of NOK 26.7 million in the fourth quarter of
2015, compared to 9.1 million in the fourth quarter of 2014.
The insurance claim after
the breakdown of the steam boiler at the Midsund plant was settled
for NOK 23 million, which is booked in the fourth quarter.
Operating EBITDA in the
quarter was NOK 1.1 million. After write-down effects EBITDA was
negative NOK 9.8 million, compared to negative 23.6 million in the
fourth quarter 2014. Operating profit (EBIT) was negative NOK 16.3
million, compared to negative 28.2 million in the same quarter last
year.
Cash flow from operations
was NOK 48.9 million, compared to 8.9 million in the corresponding
quarter last year. Cash and cash equivalents was at MNOK 28.9 by
the end of the period.
"The quarterly numbers are
not satisfactory. This is partly due to write-downs of inventory,
but our market and sales activities have also progressed at a
slower pace than we had expected. We are now taking action to
improve this," said Jon Olav Ødegård, CEO of Hofseth BioCare
ASA.
During the first half of
2016, the company will utilize more of the organization in an
effort to boost sales. So far, the two key products have been
OmeGo(TM) and ProGo(TM) in terms of hours spent by the sales
department. However, as the planned factory expansion is completed,
the PHP protein and CalGo(TM) will emerge as products with improved
product qualities. Hofseth BioCare aims to re-launch these improved
products in the global market space with a more targeted approach.
The steps taken will utilize internal resources in a more effective
way to increase the overall sales push. These measures are already
implemented in the organization.
The factory expansion
project at Midsund is the biggest endeavor for Hofseth BioCare in
2016. The goal of this expansion is to improve the product quality
of ProGo(TM), PHP and CalGo(TM). For all these products, we expect
to see positive effects in both volumes sold and pricing.
Especially for ProGo(TM), we are excited to see the market's
response to this new generation product.
Whilst continuing the strong
focus on research and development of attractive finished products,
the company has commenced a cost reduction initiative in a bid to
reduce inventories and consequently warehouse costs through bulk
sales to ingredient producers. This initiative is also intended to
generate a more stable cash flow, which in turn will support the
further development of the company.
Please see HBC's Q4 2015
report attached.
For further information,
please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no
About Hofseth
BioCare:
Hofseth BioCare is a Norwegian biotech company that offers
high-value ingredients and finished products for humans and pets.
The company is founded on the core values of sustainability,
traceability and optimal utilization of natural resources. Through
an innovative hydrolysis technology, Hofseth BioCare is able to
preserve the quality of salmon oil, proteins and calcium, prepared
of fresh salmon off-cuts. Hofseth BioCare's objective is to
contribute to the efficient use of marine resources and deliver
quality products for ingredients and finished consumer products in
the nutrition market.
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.