Polygiene AB (publ.) Interim Report 1 Januari–30 June 2018

Publish date: 23 Aug 2018

Strong growth in April and May and earnings improve

Q2 in brief

  • In the second quarter, net sales were to MSEK 16.6 (14.6), which corresponds to a 14% increase compared to the same period last year.
  • The operating profit/loss (EBIT) for the period improved compared to the same period last year and amounted to MSEK -1.9 (-3.7).
  • Cash flow for the second quarter was MSEK -4.2 (-3.5).
  • The gross margin amounted to 63% (65%).
  •  Strong growth during the first two months of the quarter temporarily slackened off in June. The third quarter initially shows signs of strong growth.
  • Establishment of a dedicated sales force in North America.
  • Focus on increasing brand partners’ repeat purchase and penetration rates.

Events during Q2 2018 (April-June)

  • The Kickstarter success Organic Basics launched Silvertech 2.0 with Polygiene Stays Fresh Technology.
  • Newly appointed management team for Polygiene as a result of the 100-day situational analysis after the change of CEO at yearend.
  • All Polygiene board members and the new CEO acquired shares in the Company in connection with a block transaction, May with a total value of MSEK 1.2, executed on 25-28.
  • Polygiene has signed a liquidity agreement with Erik Penser AB in accordance with stock exchange regulations.
  • A new business system was implemented.
  • Appointment of to Grant Thornton as the new auditor in connection with the annual general meeting.
  • A warrant program for the entire Polygiene staff was launched in June.
  • The employment of Christian von Uthmann, previously CEO and last responsible for developing new markets, was terminated with immediate effect in April.

Significant events after Q2 

  • The Los Angeles-based premium brand, Denim of Virtue, launched a jeans collection with Polygiene odor control through the VTV Hyundai Home Shopping Network.
  • Polygiene signed an exclusive distribution agreement with Swedish material science company Prebona. The agreement initially extends over a three-year period and provides Polygiene access to Prebona’s patented OdorControl technology, which is expected to complement Polygiene’s product portfolio and broaden its offering to brand partners.
  • Polygiene pressed charges against former CEO Christian von Uthmann for gross fraud and disloyalty to principal. Charges were filed with Malmö police authorities and the Company is awaiting a decision whether authorities will initiate a preliminary investigation.
  • Polygiene expanded its sales organization in North America to get closer to our brand partners and to increase repeat purchase rates.
  • Polygiene exhibited for the first time with its own booth at the Outdoor Retailer trade show in Denver, Colorado. This is in line with the Company’s updated strategy for the North American market.

This information is information that Polygiene AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08.30 CET on 23 August 2018.