ALVET TheraVet SA

• Significant sales growth in 2023, especially for BIOCERA-VET® OSTEOSARCOMA
• Portfolio strengthened with 4 new products added in 2023, for a total of 15 products
• Cash position of €1.15 million at December 31, 2023, giving financial visibility up to november 2024
• Several refinancing options under assessment

Regulatory News:

TheraVet (ISIN: BE0974387194 – ticker: ALVET) (Paris:ALVET), a pioneering company in the management of osteoarticular diseases in pets, today announces its Full-Year results for the year to December 31, 2023.

The Company also informs its shareholders and the entire financial community of the availability of the preparatory documents for the Ordinary General Meeting of the Company to be held on June 6, 2024 at 5 p.m. (CEST) at Anderlecht, Belgium.

All documents relating to this General Meeting are available on request from the Company, or can be consulted on the Company’s website under Shareholders / General Meetings.

Enrico Bastianelli, Chief Executive Officer of TheraVet, stated: “Despite a difficult socio-economic environment, sales in 2023 experienced significant growth, particularly for BIOCERA-VET® OSTEOSARCOMA which increased by 70% compared to the previous year. We also continued to strengthen our portfolio with the launch of BIOCERA-VET® ComboClean, a unique-of-its-kind product. Finally, in terms of new markets, since the announcement of the start of the evaluation of BIOCERA-VET® in horse bone cysts in February 2023, our teams have devoted important efforts to develop and successfully launch in March 2024 the equine versions of our BIOCERA-VET® product range. Our efforts are now focused primarily on the development of this market, in particular the competition horse segment, which is experiencinga good growth dynamic. Finally, the Company is studying different options to raise additional funds to ensure the Company's long-term future.”

Full-Year 2023 financial results

€ (Belgian GAAP)

December - 23

December - 22

Revenue

117,839

94,037

Other operating income

1,148,747

1,904,880

Stock of finished goods and work in progress

(8,817)

144,524

Produced fixed assets

960,216

1,507,741

Operating grants

76,813

53,508

Other operating income

120,535

199,107

Total operating income

1,266,585

1,998,917

Purchases and expenses

(2,377,685)

(3,680,826)

COGS

(74,588)

(211,396)

R&D expenses

(370,139)

(593,224)

Corporate and listed company related expenses

(121,067)

(190,573)

Marketing & Sales expenses

(186,617)

(240,268)

G&A expenses

(847,623)

(1,317,502)

Staff expenses

(770,425)

(1,124,566)

Other operating charges

(7,226)

(3,297)

EBITDA

(1,111,100)

(1,681,910)

Depreciation and amortization

(1,064,009)

(1,094,792)

EBIT

(2,175,109)

(2,776,702)

Financial income

558,635

427,044

Profit/loss for the period before taxes

(1,616,474)

(2,349,658)

Income taxes on the result

45,766

34,030

Net Profit/loss

(1,570,708)

(2,315,628)

Net Cash

1,147,082

3,185,671

In 2023, TheraVet followed its marketing strategy started in 2022 with educational programs (webinars), clinical cases communication,mainly through social network and mailing,and participation in key local and international orthopaedic and oncology events.

TheraVet’s commercial strategy based on a mixed model of direct and indirect sales was pursued with the signing of new distribution agreements in Italy (post-cloture event), Norway, Czech republic & Slovakia, and the intensification of joint promotional actions.In the United States, sales are currently only made directly, but following the official termination on April 22, 2024 of the agreement established with a defaulting distributor, advanced discussions with other distributors are underway to facilitate the penetration of the BIOCERA-VET® range in the United States.

TheraVet’s portfolio has been significantly strengthened in 2023. It currently contains 15 products (including 4 added since January 2023) to meet the preferences (synthetic vs. biological) and indications (volume of products, strengthening action or bone filling) that orthopedic veterinarians are faced with.

The Company generated €0.12 million of revenue, of which approximately 75% in Europe.

A total of 741 units from the BIOCERA-VET® range were sold. While the BIOCERA-VET® BONE SURGERY line still accounts for 80% of total sales, a 50% increase compared to 2022, BIOCERA-VET® OSTEOSARCOMA displayed strong growth in 2023, with an increase of almost 70% compared with 2022, underlining the interest aroused by this unique solution for the management of osteosarcoma in dogs. In the United States, sales, which only came from direct sales, gained momentum in 2023, with 173 units sold, representing a 5.7 -fold increase.

The Company also generated €0.96 million of “produced fixed asset” as a result of the activation of R&D expenses related to the BIOCERA-VET® and VISCO-VET® programs.

The development of preclinical and clinical programs as well as the marketing plan of BIOCERA-VET® products are in accordance with the Company development plan and are reflected by the “Purchases and expenses" globally aligned with last year expenses :

• COGS decreased by €0.14 million as compared to 2022 due to anticipated inventory stocking of products in 2022 to cover a large share of product sales in 2023;
• R&D expenses decreased by €0.22 million as compared to 2022, reaching €0.37 million. The decrease is driven by the shift in focus in 2023 to the commercialization of its recently developed product portfolio;
• Corporate and listed company related expenses decreased by €0.07 million as compared to 2022, driven by a focus of the company on cost efficiency measures throughout 2023;
• Marketing & Sales expenses decreased by €0.05 million as compared to 2022, with a limited impact of cost efficiency measures in this cost category, driven by the active focus of the Company on marketing and sales of its product portfolio;
• G&A expenses decreased by €0.47 milllion as compared to 2022, a significant reduction of 35%, reflecting the Company’s focus on cost and organizational efficiency throughout 2023;
• Staff expenses decreased by €0.35 million as compared to 2022, an equally significant reduction of 32%, as a result of the Company’s ongoing organizational efficiency initiatives.

Finally, the amortization of development expenses related to the BIOCERA-VET® and VISCO-VET® programs results in an operating loss of €2.2 million and a net loss of €1.6 million.

The Company’s cash and cash equivalents at December 31, 2023 amounted at €1.15 million, enabling it to fund operations to November 2024.

Post-closing Operational Highlights

On January 09, 2024, the Company began distributing its BIOCERA-VET® product range in Italy, Europe's fourth largest pet market. This distribution agreement comes after market evaluation and the start of several clinical trials in Italy with key opinion leaders.

On January 17, 2024, the Company announced the official launch of its BIOCERA-VET® product range in Germany. With a total population of 27 million pets (including 10.3 million dogs and 16.7 million cats), corresponding to 47% of owner households, Germany is the largest pet market in Europe.

On February 20, 2024, the Company announced the recruitment of Brakke Consulting to help it develop its growth strategy for the US market. Brakke is one of the leading consultancies specialising in the veterinary sector and has extensive experience in developing companies in this sector in the US market. Brakke's objective will be to help develop TheraVet's presence and recognition as a major player in the US orthopaedic market. He will also assist the Company in identifying potential M&A opportunities.

On March 13, 2024, the Company announced the launch of its equine business with the marketing of 2 new BIOCERA-VET® products for orthopaedic and dental surgery in horses. This launch marks the Company's entry into the high added-value equine market.

On March 20, 2024, the Company's Board of Directors decided to co-opt as a director the limited liability company FATAKI BV, whose permanent representative is Johan Dreesen, to replace Ms Julie Winand, who left her position within the Company and her directorship during the 2023 financial year. Confirmation of the appointment of FATAKI BV will be proposed at the next Ordinary General Meeting of the Company, scheduled for June 06, 2024.

On April 22 2024, after 18 months of unfruitful attempts due to factors beyond its control to start the distribution operations with its partner in the United States, the Company has decided to terminate the agreement and to focus on other distributors for which advanced discussions are underway.

Full-Year Report 2023

The 2023 Full-Year report for the year ended December 31, 2023 will be published today, 2024 and is available on the Company’s website, www.theravet-finances.com.

The statutory auditor has issued an unmodified report dated April 22, 2024 on the Company’s Full-Year accounts as of and for the year ended December 31, 2023, and has confirmed that the accounting data reported in the accompanying press release is consistent, in all material respects, with the accounts from which it has been derived.

Going concern

The financial statements were prepared on a going concern basis in accordance with the significant accounting policies set out below.

During 2023, the Company's equity remained above the share capital.

In addition, as the value of intangible assets and property, plant and equipment calculated on the basis of our discounted cash flow analysis was higher than their accounting value at December 31, 2023, these assets were not subject to any additional exceptional depreciation.

As the Company's balance sheet shows a loss carried forward of €-5,843,003 and a loss for more than two consecutive years, we are required to justify the application of the going concern accounting rules (article 3:6§6 of the Companies and Associations Code).

The current accounting loss is due to the fixed costs of running the Company, and to the development costs of the VISCO-VET® and BIOCERA-VET® projects, which are not covered by a grant. Cash flow has been sufficient to cover these costs.

Based on the current scope of its activities and best estimates of annual cash consumption, revenue and grants, as well as the absence of any significant impact of the political situation on its activities, the Company estimates that its cash and cash equivalents at December 31, 2023 should be sufficient to finance its operations until November 2024. On the other hand, cash and cash equivalents may not be sufficient to meet the Company's working capital requirements for the twelve months following the date of release of the financial statements for fiscal year 2023. These circumstances indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

The Board of Directors nevertheless considers it appropriate to prepare the Company's financial statements on a going concern basis, while implementing a plan to secure a new financial contribution to the Company.

The Company is currently considering several options for raising additional funds, whether through equity financing, collaboration, or a strategic tie-up with another player in the animal healthcare market. Based on its operating budgets, the management believes that the Company will be able to meet its financial obligations for the 7 months following the date of these financial statements. The management therefore believes that the going concern assumption is justified.

Financial calendar 2024

Ordinary General Assembly: June 06, 2024

Half-year business update: July 11, 2024

Half-year financial results: September 12, 2024

About TheraVet SA

TheraVet is a veterinary biotechnology company specialising in osteoarticular treatments for companion animals. The Company develops targeted, safe and effective treatments to improve the quality of life of pets suffering from joint and bone diseases. For pet owners, the health of their pets is a major concern and TheraVet’s mission is to address the need for innovative and curative treatments. TheraVet works closely with international opinion leaders in order to provide a more effective response to ever-growing needs in the field of veterinary medicine. TheraVet is listed on Euronext Growth® Paris and Brussels, has its head office in Belgium (Gosselies) with a US subsidiary.

For more information, visit the TheraVet website or follow us on LinkedIn / Facebook / Twitter

Forward-looking statements

This release may contain forward-looking statements. Forward-looking statements may include statements regarding the Company's plans, objectives, goals, strategies, future events, the safety and clinical activity of TheraVet’s pipelines and financial condition, results of operation and business outlook. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. These risks, uncertainties and other factors include, among others, those listed and fully described in the “Risk Factors” section in the Annual Report. TheraVet expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.

Statements of operations and comprehensive loss

 

31.12.2023

31.12.2022

Operating

1,266,585

1,998,916

Revenue

117,839

94,037

Stocks of finished goods and work and contracts in progress: increase (decrease)

 

-8,817

144,524

Produced fixed assets

960,216

1,507,741

Other operating income

197,348

252,615

Non-recurring operating charges

 

 

Operating charges

3,441,694

4,775,618

Goods for resale, raw materials and consumables

74,588

211,396

Purchases

115,734

146,696

Stock: increase/decrease

-41,146

64,700

Services and other goods

1,525,446

2,341,568

Remuneration, social security costs and pensions (+)/(-)

770,425

1,124,566

Amortisations of and other amounts written down on formation expenses, intangible and tangible fixed assets

 

1,064,009

908,651

Increase, decrease in amounts written off stocks contracts in progress and trade debtors : appropriations (write-backs) … (+)/(-)

 

0

186,141

Provisions for risks and charges - appropriations (uses and write-backs) … (+)/(-)

 

 

Other operating charges

7,226

3,297

Operation charges carried to assets as restructuring costs

 

Non-recurring operating charges

 

 

Operating profit (loss) (+)/(-)

-2,175,109

- 2,776,702

 

 

31.12.2023

31.12.2022

Financial income

593,758

473,836

Recurring financial income

593,758

473,836

Non-recurring financial income

 

 

Financial charges

35,124

46,792

Recurring financial charges

35,124

46,792

Non-recurring financial charges

 

 

Profit (loss) for the period before taxes (+)/(-)

-1,616,474

-2,349,658

Transfer fom postponed taxes

 

 

Transfer to postponed taxes

 

 

Income taxes (+)/(-)

45,767

34,030

Taxes

1,602

13,591

Adjustment of income taxes and write-back of provisions

47,369

47,621

Profit (loss) for the period (+)/(-)

-1,570,707

-2,315,628

Transfer from untaxed reserves

 

 

Transfer to untaxed reserves

 

 

Profit (loss) for the period available for appropriation (+)/(-)

-1,570,707

-2,315,628

Profit (loss) for the period (+)/(-)

-1,570,707

Profit (loss) per share for the period (+)/(-) – Direct

-0.487

Profit (loss) per share for the period (+)/(-) – Diluted

-0.4661

1 This diluted EPS calculation excludes potential new shares to be issued in the future based on the convertible obligations issued by the Company on November 20th, 2023, as well as based on potential new tranches of convertible obligations that could be issued in the future in the context of the Equity Line put in place by the company during the 2023 fiscal year

Statement of Financial Position

ASSETS

31.12.2023

31.12.2022

FORMATION EXPENSES

451,855

635,415

FIXED ASSETS

5,435,044

5,306,204

Intangible fixed assets

5,212,569

5,084,070

Tangible fixed assets

21,686

28,578

Land and buildings

 

Plant, machinery and equipment

19,816

23,064

Furniture and vehicles

1,870

5,514

Leasing and other rights

 

Other tangible fixed assets

 

Tangible assets under construction and advance payments made

 

Financial fixed assets

200,790

193,556

Affiliated companies

192,233

181,631

Participating interests

8,749

8,749

Amounts receivable

183,484

172,882

Other financial fixed assets

8,557

11,925

Amounts receivable and cash guarantees

8,557

11,925

CURRENT ASSETS

1,647,291

3,560,167

Amounts receivable after more than one year

 

Trade debtors

 

Other amounts receivable

 

Stocks and contracts in progress

123,342

91,013

Stocks

123,342

91,013

Raw materials and consumables

 

 

Work in progress

4,409

13,226

Finished goods

 

 

Goods purchased for resale

118,933

77,787

Contract in progress

 

 

Amounts receivable within one year

334,308

235,098

Trade debtors

18,228

34,019

Other amounts receivable

316,079

201,079

Current investments

 

 

Cash at bank and in hand

1,147,082

3,185,671

Deferred charges and accrued income

42,559

48,385

TOTAL ASSETS

7,534,190

9,501,785

LIABILITIES

31.12.2023

31.12.2022

 

 

 

EQUITY

6,049,198

7,521,135

Contributions

10,172,459

10,172,459

Available

322,394

322,394

Issued capital

322,394

322,394

Beyond capital

9,850,065

9,850,065

Share premium account

9,850,065

9,850,065

Revaluation surplues

 

 

Reserves

 

 

Legal reserve

 

 

Reserve not available

 

 

In respect of own shares held

 

 

Others

 

 

Untaxed reserves

 

 

Available reserves

 

 

Accumulated profits (+)/ losses (-)

-5,843,002

-4,272,294

Investment grants

1,719,741

1,620,971

PROVISIONS AND DEFERRED TAXES

Provisions for liabilities and charges

 

 

Deferred taxes

 

 

AMOUNT PAYABLE

1,484,993

1,980,651

Amounts payable after more than one year

1,000,600

897,058

Financial debts

1,000,600

897,058

Subordinated loans

12,500

37,500

Other loans

988,100

859,558

Trade debts

 

 

Advances received on contracts in progress

 

 

Other amounts payable

 

 

Amounts payable within one year

477,493

1,075,548

Current potion of amounts payable after more than one year

159,267

151,033

Financial debts

 

 

Credit institutions

 

 

Other loans

 

 

Trade debts

131,615

136,156

Suppliers

131,615

136,156

Bills of exchange payable

 

 

Advances received on contracts in progress

 

 

Taxes, remuneration and social security

100,527

239,943

Taxes

0

28,527

Remuneration and social security

100,527

211,415

Other amounts payable

86,084

548,415

Accruals and deferred income

6,900

8,045

TOTAL LIABALITIES

7,534,190

9,501,785

Cash Flow Statement

Cash flow Statement

31.12.2023

31.12.2022

 

 

 

Free cashflow

-538,996

-1,404,282

Net cash used in operations

-679,148

373,092

Net cash (used in)/from investing activities

-1,009,290

-1,554,457

Net cash (used in)/from financing activities

188,845

139,900

 

 

 

Net cash (decrease)/increase

-2,038,589

-2,445,747

Cash & cash equivalents at opening

3,185,671

5,631,418

Cash & cash equivalents at closing

1,147,082

3,185,671

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240422016529/en/

TheraVet Chief Operating Officer Sabrina Ena investors@thera.vet Tel: +32 (0) 71 96 00 43

NewCap Investor Relations and Financial Communications Théo Martin / Nicolas Fossiez theravet@newcap.eu Tel: +33 (0)1 44 71 94 94

Press Relations Arthur Rouillé theravet@newcap.eu Tel: +33 (0)1 44 71 00 15

NewCap Belgique Press Relations Laure-Eve Monfort lemonfort@newcap.fr Tél. : + 32 (0) 489 57 76 52