Spineway: Half-year results 2024

SPINEWAY

Half-year results 2024

• Half-year sales of EUR 6.5 million (+20%)
• Improvement in operating results
• Full impact of austerity measures visible in the second half of 2024

Spineway’s Board of Directors meets on September 23^rd2024, chaired by Stéphane Le Roux, approved the half-year financial statements as of 30 June^th2024.

Spineway, a specialist in innovative implants for the treatment of severe spinal disorders, continues its organic growth (excluding scope effect) and achieves sales of EUR 6.5 million in the first half of 2024, an increase of 20% compared to the first half of 2023.

The gross margin remains at a normative level of 69%, stable compared to the end of 2023 and in line with the Group’s forecasts.

During the period, Spineway continued its regulatory investments to obtain new export authorizations and CE/MDR certifications. The Company has initiated a cost optimization plan that includes rationalization of headcount and operating costs, resulting in a reduction in net operating costs in the first half of the year, the full impact of which will be seen in the second half of the fiscal year.
As of 30 June^thThese efforts and the growth in sales enabled a significant increase in operating profit by almost €500,000 to -€770,000 by January 1, 2024, compared to -€1,256,000 in the previous year (+39%).

The financial result amounts to -€2,096,000 and includes the recognition of an extraordinary financial charge of €1.4 million related to the compensation mechanism of the Negma financing agreement. As explained³the contract provides for compensation in the event of a stock market price below the nominal value of the share. The unfavourable change in Spineway’s share price at the beginning of the 2024 financial year led to compensation in the event of the cancellation of tranches. To protect itself against this mechanism, Spineway reduced the nominal value of its share in February⁴This financial charge did not result in any cash outflow for the Group and was entirely financed through Spineway shares.

Taking into account an extraordinary result of €-515,000, which mainly includes extraordinary personnel costs related to the reduction in staff, the net result amounts to €-3,381,000. Adjusted for the extraordinary nega costs, the Group’s net profit remains stable at €-1.9 million.

Cash of €1.6 million at the end of June 2024

As of 30 June^th2024, 1,688 convertible bonds (OCA), linked to the OCA⁵ Issue and subscription agreement, were converted into 1,525,525,254 shares. Thus, Spineway’s share capital at the end of June 2024 after the share consolidation amounts to €155,856.65 and consists of 3,463,477 shares of €0.045 each.

At the end of June 2024, Spineway’s cash balance stood at EUR 1.6 million and net debt remained low at EUR 0.3 million against equity of EUR 20.7 million, corresponding to a leverage ratio (net debt/equity) of 1.3%.

Further developments

In line with its strategy, Spineway is intensifying its commercial developments and continuing its approval processes for Spine Innovations and Distimp products for major exports. To this end, the Group is increasing the number of conferences and training sessions for surgeons on its ESP prostheses, particularly in Latin America and Asia.⁶

Spineway is focused on launching a premium range of implants and instruments to more broadly cover the degenerative spine segment. In addition, Spineway is working to internalize the production of its ESP prostheses to be able to respond more quickly and optimize production costs. To this end, the company has entered into a partnership with a subcontractor to develop its own production line, which should be operational by the end of the year.

The good focus of the Group’s activities combined with a continuous improvement in operating costs should enable the Group to⁷ with the aim of returning to profitability in the medium term.

Next meeting :
October 15, 2024 – Revenue for the third quarter of 2024

SPINEWAY IS ELIGIBLE FOR PEA-PME
Find out all about Spineway at www.spineway.com

This press release has been prepared in English and French. In case of discrepancy, the French version prevails.
Spineway develops, manufactures and markets innovative implants and surgical instruments for the treatment of serious diseases of the spine.
Spineway has an international network of over 50 independent distributors and generates 70% of its turnover through exports.
ISIN: FR001400BVK2 – ALSPW

Contacts:

1 – See the explanation of this fee on page 2 of the net result
2 – Net result adjusted for the extraordinary nega fee of €1,467,000

3 – Press release of 27 October 2020
4 – Press release dated February 29, 2024
5 – Press release dated 25 May 2023
6 – Press releases dated June 26, July 24 and September 12, 2024
7 – With regard to operating results