PhotoCure ASA (PHCUF) Q1 2025 Earnings Call Highlights: Strong European Growth Amid US Challenges

GuruFocus News

Fri, May 9, 2025, 12:09 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• PhotoCure ASA (PHCUF) reported a 7% gross maturation successful Q1 2025, with an 11% summation successful European business.

• The institution achieved affirmative EBITDA maturation for the eighth consecutive quarter, indicating beardown operational performance.

• PhotoCure ASA (PHCUF) expanded its progressive accounts by 17% twelvemonth implicit year, reflecting palmy marketplace penetration.

• The institution completed a stock buyback program, acquiring astir 500,000 shares, which tin heighten shareholder value.

• PhotoCure ASA (PHCUF) maintained a beardown currency presumption with astir $260 cardinal successful currency and nary semipermanent debt, providing fiscal stability.

• The US marketplace faced a important diminution successful flexible cystoscopy sales, with a 71% driblet successful Q1 2025.

• Timing of income and terms increases successful 2024 affected buying patterns, impacting gross maturation successful the US.

• Operating expenses accrued owed to congresses, concern meetings, and inflation, affecting profitability.

• The institution experienced a nett nonaccomplishment of 2.4 cardinal successful Q1 2025, compared to a nett nonaccomplishment of 7.9 cardinal successful the aforesaid play past year.

• Cash travel from operations decreased to 4.1 cardinal successful Q1 2025, down from 8.4 cardinal successful the erstwhile year, chiefly owed to little EBITDA.

• Warning! GuruFocus has detected 2 Warning Sign with PHCUF.

Q: Can you springiness an update connected erstwhile you expect reclassification to happen? Does the cuts successful the US authorities impact the clip frame? A: Dan Schneider, CEO: There is nary statutory request for the FDA to enactment connected the reclassification petition from Carl Stors. However, important efforts person been made to stress the request for entree to bluish airy cystoscopy, supported by manufacturers, patients, and cardinal sentiment leaders. We are optimistic astir advancement this year, with legislature enactment and ongoing unit connected the FDA.

Q: Given that the US volition instrumentality precocious tariffs connected pharmaceuticals and that accumulation is successful Europe, however does that interaction Photocure and what volition beryllium the feasibility of producing successful the US? A: Eric Dahl, CFO: The interaction of imaginable tariffs is minimal, arsenic the outgo of goods sold for the US is little than 5%. Even with a 25% tariff, the interaction would beryllium astir 1.25% of revenue. Moving accumulation to the US is not presently indispensable owed to the debased interaction of tariffs.

Q: Weaker measurement improvement successful the US, however person the maturation developed into Q2? A: Eric Dahl, CFO: While I can't supply circumstantial details astir Q2, the improvement meets our expectations. Dan Schneider, CEO, added that maintaining guidance indicates a affirmative outlook for Q2.