Biohit’s Q3 has followed the stepping stones

Translation: Original comment published in Finnish on 10/5/2023 at 6:30 am EEST

Biohit that reports semi-annually does not publish business reviews for Q1 and Q3 but the company reports on its progress in the CEO’s blog. The company’s message concerning business development during Q3 is positive and in line with our expectations. Therefore, we see no reason to update our view or forecasts at this stage. The company also said that it is working carefully on the new strategy and the process should be completed in November.

The outlook remains positive

Biohit reiterated its previous guidance that turnover for the whole year will be EUR 12–13 million, which would mean EUR 5.5-6.5 million for H2. Our estimate is close to the mid-point of the range for the whole year at EUR 12.4 million. The company did not comment on the EBIT guidance (increasing from the 2022 level) in the blog post. Our EBIT estimate for 2023 is EUR 1.9 million (2022: 1.1 MEUR). Biohit reported that the supply chain challenges that plagued it last year have eased, which was the company’s message already in the H1 report.

A strategy update is expected later in the year

Biohit is renewing its strategy and the process has been ongoing since April. The company says it has focused on a careful analysis of the current situation examining the products, market areas and the company’s weaknesses, strengths and potential. The process has included interviews with distributors and end-users to understand their needs. Based on the analysis, business goals are defined for products and market areas. Biohit says that it aims to use the strategy as a daily prioritization tool that helps achieve the goals. The new strategy should be completed in November. We are especially looking forward to information on the company’s longer-term direction and targets, for which visibility is currently low, as we have stated in the recent Initiation of coverage report.