CS MEDICA A/S (CSMED), a Danish MedTech company specializing in CBD-infused medical devices, concluded the fiscal year 2023/2024 with a transformative fourth quarter, marked by progress and positive revenue growth. However, the quarter was also characterized by financial constraints to scale and a last-minute postponement of a M&A initiative impacted the annual revenue, leading to a 46% deviation from projected outcomes, shifting to expected completion in the next fiscal year.

Fourth Quarter Financial Performance Highlights:

• Net Sales: Achieved mDKK 3.9, a substantial increase from mDKK 0.073 in Q4 of the previous year.
• Gross Profit: Rose to mDKK 1.44 from mDKK 0.047.
• Operating Profit: Improved to mDKK -2.8 from mDKK -4.6.
• Net Profit: Improved to mDKK -1.1 from mDKK -3.7.

Annual Financial Overview:

• Annual Net Sales: Reached mDKK 8.5, compared to mDKK 1.1 in the previous year, despite a 46% shortfall from the anticipated mDKK 15 due to a postponed merger and acquisition initiative.
• Annual Gross and Operating Profit: Showed marked improvements with gross profit at mDKK 3.2 and operating loss reduced to mDKK -12.5 from mDKK -17.9.
• Net Profit for the Year: Improved to mDKK -9.7 from mDKK -14.5.
• Liquidity and Equity: Cash and equivalents ended at mDKK -0.8, with equity at mDKK 6, showing a ratio of 17%, adjusted from 40%.

Significant Post-Quarter Events:

Following the close of the quarter, an Extraordinary General Meeting (EGM) on November 12, 2024, approved the conversion of founders' and family debt into equity to strengthen financial stability.

CEO’s Comments:

Our performance this quarter highlights CS MEDICA’s resilience and ability to execute our strategic initiatives effectively. The planned CANNORDIC IPO is set to provide capital to enhance our liquidity and scale operations. This quarter also saw significant strategic advancements, including a pivotal partnership with Nimbus Health, part of Dr. Reddy's Laboratories, to expand our footprint in the German market—our most mature market in Europe. Additionally, our compliance journey saw us successfully pass the second audit from our notified body as part of the MDR transition, further enabling us to convert more of our pipeline into active sales.

Looking Forward to 2025:

With a lean business model, robust strategies in place and expected financial reinforcement, CS MEDICA is optimistically positioned for a transformative year in 2025. The company remains dedicated to continuing its path of innovation, expanding market sales, and enhancing shareholder value.
 

For more information about CS MEDICA, please contact:
Gitte Lund Henriksen, CFO
Phone: + (45) 2774 2280
Email: glh@cs-medica.com
Website: https://www.cs-medica.com/
 

CS MEDICA A/S, a Danish MedTech pioneer, specializes in developing evidence-based, CBD-integrated treatments for pain management, autoimmune and stress-related disorders. With a focus on patient-centric care, our products range from innovative R&D to registered over-the-counter substance-based medical devices and dermaceuticals. Our flagship CANNASEN® brand, alongside our own-label solutions, exemplifies our dedication to safe, high-quality treatments for both human and veterinary health globally. The company is listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information, visit cs-medica.com and LinkedIn.
 

CANNORDIC A/S, a subsidiary of CS MEDICA Group, is a pioneering MedTech company specializing in innovative substance-based medical devices containing bioactive CBD. Our dedication to enhancing lives by integrating innovation, science, technology, and natural cannabis compounds positions it as a pioneer in the medical technology industry. The company ensures robust research, development, manufacturing, compliance, data insights, and commercialization processes.