Equity Research Nosa Plugs: First impression Q3, 2024

This morning, Nosa Plugs reported its Q3 2024 earnings. Below are our first impressions of the report.

• Net sales during the quarter came in significantly higher than Q3 of 2023 at SEK 4.3 million (1.9), a growth YoY of 124%. The outcome was significantly above our estimate of SEK 3.3 million, a 30% difference. The growth was attributable to strong performance from products like smell training, launching in pharmacies in both Sweden and Germany.
• The gross profit amounted to ~ SEK 3.0 million (1.3) representing a margin of 68 % (67) and a growth YoY of  ~ 130%. Our estimate was SEK 2.3 million.
• EBITDA came in at SEK -1.7 million (-3.6) compared to our estimate of SEK -1.2, a deviation from our estimate of 33%.
• EBIT amounted to SEK -2.2 million (-3.9) as compared to our estimate of SEK -1.8 million, representing a deviation from our estimate of 22%.

The quarter was strong, with sales outpacing last year as well as our estimates. NOSA secured new partnerships during the quarter, including a new distributor in Belgium. Furthermore, as was mentioned in the interview following the previous quarter, NOSA was granted ISO certification 13485. This is, for many distributors, a must-have before doing business. In terms of costs, NOSA was  still higher than what we expected. Other external expenses landed on SEK -3.4 million, compared to our estimate of -1.9 million. Summarily, all lines below the gross profit came in lower than what we had estimated. Information regarding drug delivery was also given. However, instead of a big reveal it was clarified that the application will be sent in by the end of the year. This is delayed compared to what we had expected, but we do not see it as a big enough delay to warrant any doubts regarding the validity of the project.

Taken together, Carlsquare Equity Research views the quarter as a strong one with impressive growth. However, costs remain elevated and drug delivery still eludes us.

Watch our interview with CEO, Adrian Liljefors, in conjunction with the report here

Read our latest update on Nosa Plugs here

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