BioMaxima summarizes 2022 and prepares for further growth

BioMaxima summarizes 2022 and prepares for further growth
BioMaxima SA, a leading Polish manufacturer and exporter of laboratory diagnostics, reports record financial results for the third year in a row. In 2022, the BioMaxima SA Group generated net revenues of PLN 143 867 thousand, which represents an increase of 81.90% compared to the previous year. Operating profit plus depreciation (EBITDA) for 2022 reached PLN 36 874 thousand. The net profit for 2022 amounted to PLN 28,885 thousand and is higher than the net profit achieved in the previous year by 182 %. The year ended is the first year when the Company’s shares were listed on the regulated market of the WSE.
– “The year 2022 was not only a record year in terms of financial results, but it was also full of other important events for the position and future of BioMaxima SA. The first listing of the company’s shares on the main floor of the WSE took place on 31 January 2022. The dynamic development of BioMaxima was noticed and the company was included in the prestigious FT1000 ranking of the Financial Times newspaper as one of the fastest growing European companies of the year. This development was made possible by the systematic hard work of our team and by reinvesting the funds earned by BioMaxim.” – Łukasz Urban, President of the Management Board of BioMaxima - “We are consistently implementing the strategy described in the Prospectus of building a strong Polish manufacturer of tests used for diagnosing infections, the only manufacturer of systems for determining drug sensitivity in the region of Central Europe,” he added.
Stable revenue
Revenues from sales related to COVID-19 diagnostics in the second half of 2022 amounted to only approx. 3% of the total revenue of the company. In contrast, sales of non-COVID-19 products increased by 38% in 2022 compared to the previous pandemic in 2019. Revenues of most of the Company’s traditional product ranges are growing steadily and reached historically record values in 2022. For example, total microbiology sales increased by 19% year-on-year compared to 2021, rapid tests by 46% and diffusion discs for susceptibility testing by 140%.
The strategy will drive future development
The construction of the new production plant of the Company and the adaptation of the warehouse and office building with a total usable area of 2350 m2 has already been completed in Lublin. BioMaxima SA is now awaiting the issue of a usage permit, which will increase the infrastructure available to the Company to 6000 m2 in total. The next stage of the investment will be the expansion of production capacity in the microbiology segment in the existing building, the completion of which is planned for the 3rd quarter of this year.
The Issuer conducts development work aimed at developing a technology for the production of tests including new assays from blood and other body fluids, as well as in industrial applications.
During the meeting with investors, the Management Board assessed that the above investment and development projects, implemented within the framework of the strategy described in the Prospectus of BioMaxima SA, will successively, within 3 years from their completion, generate additional revenues in the segment of drug sensitivity (AST), rapid tests, molecular diagnostics and microbiology, amounting to between PLN 45 and 75 million per year.
Automation and robotization of production and warehouse processes implemented as part of the investment will significantly increase the scale and operational efficiency and reduce the unit costs of manufacturing the product. The Management Board expects that, in the described time horizon, the effect of scale should also be expected in the form of higher EBITDA growth generated by the Company relative to total revenues.
Favourable trends in the market environment
During the meeting with investors, the management board also pointed to events such as the introduction of the reimbursement of the examination procedure with differentiated triple tests for upper respiratory tract infections in Poland, or the act on the profession of pharmacist, which gives pharmacists the right to perform diagnostic tests, which are beneficial incentives for the development of the market for rapid tests.
It was also noted that as a result of widespread testing during the COVID-19 pandemic, rapid diagnostics became widely public awareness. An example of this trend in Poland is the amendment of the Labour Law and the introduction of de facto mandatory testing of employees by employers.
The global drug susceptibility testing market (disk diffusion systems, MIC tests, substrates and automated systems) was estimated at US$3.22 billion in 2020. It is expected to grow at an average rate of 5.5% per annum to reach USD 4.2 billion by 2025 (MarketsAndMarkets, 2020). The problem of rapid determination of drug sensitivity, for example in connection with sepsis diagnostics and the need to introduce modern solutions enabling earlier implementation of targeted therapy, is gaining interest in Poland from the public as well as from decision makers.
Good financial situation
In 2022, the Company paid PLN 1 948 thousand as dividends. In the third quarter of 2022 reali