Presentation

Boule Diagnostics is a Swedish diagnostic company specialising in proprietary instruments and consumables for blood cell counting. The company offers automated blood cell counting systems for global human and veterinary market. Sales are foremost conducted via global distributors in more than 100 countries. The firm was founded in 1992 and is headquartered in Spånga, Sweden.

Recent highlights
Following the new regulations IVD(R), Boule is adapting its business to fulfil the requirements of what is needed to supply on European markets. Moreover, Boule signed a distribution agreement with Fujifilm Europe, a supplier of medical technology to the veterinary market. The initial agreement covers the supply of Exigo H400 to customers in three European countries, however, negotiations regarding whether to expand the distribution are ongoing.
As part of the development of the new instrument platform and preparation for the regulatory application, Boule has undertaken a collection of external clinical data to optimize the algorithms that classify blood cells.
Net sales in Q2 amounted to SEK 141m, corresponding to a 27% increase y/y (14% y/y in constant currency) and an all-time-high first-quarter revenue. The growth was mainly driven by collaboration with distributors and advantageous exchange rates. Gross margin landed at 38% (42.9%), indicating a margin decrease compared to Q1.

Outlook
Gross margin and profitability levels are expected to remain low, owing to the unstable supply chain affected by the new IVD(R) regulations, component shortages, and logistics challenges. Also, revenue from the capital invested in Russian firms is set to remain low, resulting in declining growth in the east European regions. However, Boule will continue to develop its international market position and establish new distribution agreements to promote future growth. We expect the gross margin to recover to 42% in Q3. However, revisions to our gross margin assumptions and opex imply that we reduce our EBITDA forecast for 2022-2024 by 6-9%.