J. Molner AS Consolidated interim report for the first 6 months of 2024 (unaudited)Tallinn, 2024-09-17 08:00 CEST --
Management report
The Management Report has been prepared for the consolidated financial results of J. Molner AS, The J. Molner Company OÜ and The J. Molner Company LLC (hereinafter the “Group “) for the first half year of 2024.
During the first half of year 2024, the Group continued the development of its own generic drugs and the provision of analytical chemistry and method development services to third parties. Revenue for the first six months 2024 increased to EUR 1,305,327, up 382% from the same period 2023. Growth was achieved through the performance of our hydrocortisone butyrate topical solution in the United States and a growth in our analytical and development services in the United States, Canada, and Europe.
The Group continued to invest in its pipeline of pharmaceuticals for the United States and Canada. In April 2024, we received approval for the first Estonian-developed abbreviated new drug application (“ANDA”) from the US Food and Drug Administration (“FDA”). We anticipate launching this product in the fourth quarter of 2024. In addition, we continued our development efforts to return to market two further approved ANDAs owned by the Group and five licensed products for the US market. We anticipate reintroducing two of these products in the second half of 2024 and the balance in 2025, subject to satisfactory data and the consent of the US FDA.
In Canada, the Group’s marketing partner launched the first of our injectable drugs, norepinephrine bitartrate, to market in June 2024. We have one further pending abbreviated new drugs submission (“ANDS”) under active review at Health Canada. We continue to evaluate opportunities to build our pipeline of drugs for the institutional sector in Canada through a combination of inlicensing, development, and acquisition.
Important notes:
• The Group's business is not seasonal.
• The Group's activities are not accompanied by significant environmental and social impacts.
• Interest rates did not change significantly during the financial year and the period of preparation of the annual report.
As per 30.06.2024 the total consolidated unaudited balance sheet of J. Molner AS was EUR 4,306,345 (as per 30.06.2023, EUR 2,338,793). The total consolidated balance sheet increased by 84% compared to the total consolidated balance sheet on 30.06.2023. As per 30.06.2024, consolidated current assets amounted to EUR 1,217,724 (as per 30.06.2023 EUR 933,392), which is 28% of total assets (as per 30.06.2023 40%).
As per 30.06.2024 consolidated fixed assets amounted to EUR 3,088,621 (as per 30.06.2023 EUR 1,405,401), which is 72% of total assets (as per 30.06.2023 60%). As per 30.06.2024 the consolidated liabilities of J. Molner AS amounted to EUR 3,460,225 (as per 30.06.2023 EUR 1,429,663), which is 80% of the total balance sheet (as per 30.06.2023 61%). As per 30.06.2024 the consolidated equity was EUR 846,120 (as per 30.06.2023 EUR 909,130), which is 20% from total balance sheet (as per 30.06.2023 39%).
In the first half of 2024 the Group’s investments to fixed assets were EUR 481,683, including EUR 358,589 on research and development. Depreciation expenses for the first 6 months of 2024 amounted to EUR 42,628.
In January 2024, subsidiary of J. Molner AS The J. Molner Company OÜ concluded a subordinated loan agreement with no specific repayment term which extended the existing credit facility of The J. Molner Company OÜ up to USD 2,750,000. The interest rate applicable in respect of the additional amount is 7% per year. As per 30.06.2024 the consolidated unaudited loan liabilities were EUR 2,686,917 (as per 30.06.2023 EUR 1,206,153), of which EUR 279,734 is short term liabilities (as per 30.06.2023 EUR 277,483) and EUR 2,407,183 (as per 30.06.2023 EUR 928,670) is long term liabilities. In the first half of 2024 interest on the loans was EUR 137,120. In the period 01.01.2023-30.06.2023 the interest on loans was EUR 56,969 EUR.
As per 30.06.2024 the consolidated unaudited sales revenue was EUR 1,305,327, on 30.06.2023 the consolidated unaudited sales revenue was EUR 270,769. Consolidated unaudited sales revenue for the first half of 2024 increased by 382% compared to the first half of 2023. In 30.06.2024 the consolidated unaudited loss was EUR 982,119, on 30.06.2023 the consolidated unaudited loss was EUR 444,526.
As per 30.06.2024 The Group had 29 employees, 1 member of the management board and 3 members of the supervisory board. In January – June 2024 the consolidated unaudited labor costs amounted to EUR 721,973, of which EUR 5,125 was the costs of the reserve provided to employees.
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Financial Ratios |
30.06.2024 |
30.06.2023 |
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Current Ratio |
1,16 |
1,86 |
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Net Working Capital |
164 682 |
432 399 |
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EBITDA |
-724 972 |
-378 369 |
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Equity Ratio, % |
19,65 |
38,87 |
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Return on Total Assets, % |
-75,24 |
-164,17 |
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Total Debt Ratio, x |
0,80 |
0,61 |
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Current Ratio = Current assets / Current liabilities |
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Net Working Capital = Current assets - Current liabilities |
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EBITDA = Operating profit + Depreciation and impairment loss |
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Equity Ratio = Equity / Cost of Assets *100 |
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Return on Total Assets = Net Profit / Revenue *100 |
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Total Debt Ratio = Liabilities / Total liabilities and owners` equity |
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The consolidated interim accounts
Consolidated statement of financial position
(In Euros)
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30.06.2024 |
31.12.2023 |
30.06.2023 |
Note |
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Assets |
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|
|
|
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Current assets |
|
|
|
|
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Cash and cash equivalents |
611 512 |
92 522 |
675 300 |
2 |
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Receivables and prepayments |
518 601 |
316 330 |
248 704 |
3 |
|
Inventories |
87 611 |
72 242 |
9 388 |
4 |
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Total current assets |
1 217 724 |
481 094 |
933 392 |
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Non-current assets |
|
|
|
|
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Investments in subsidiaries and associates |
262 |
263 |
263 |
|
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Receivables and prepayments |
9 595 |
9 595 |
2 377 |
3 |
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Property, plant and equipment |
291 511 |
213 402 |
159 185 |
6 |
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Intangible assets |
2 787 253 |
2 426 307 |
1 243 576 |
7 |
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Total non-current assets |
3 088 621 |
2 649 567 |
1 405 401 |
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Total assets |
4 306 345 |
3 130 661 |
2 338 793 |
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Liabilities and equity |
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Liabilities |
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Current liabilities |
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|
|
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Loan liablities |
279 734 |
267 645 |
277 483 |
8 |
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Payables and prepayments |
773 308 |
688 677 |
223 510 |
9,10 |
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Total current liabilities |
1 053 042 |
956 322 |
500 993 |
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Non-current liabilities |
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|
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Loan liablities |
2 407 183 |
1 911 170 |
928 670 |
8 |
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Total non-current liabilities |
2 407 183 |
1 911 170 |
928 670 |
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Total liabilities |
3 460 225 |
2 867 492 |
1 429 663 |
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Equity |
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|
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Equity held by shareholders and partners in parent company |
|
|
|
|
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Issued capital |
1 686 001 |
1 686 001 |
1 686 001 |
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Share premium |
612 327 |
612 327 |
612 327 |
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Other reserves |
3 401 781 |
1 836 711 |
1 842 013 |
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Retained earnings (loss) |
-3 871 870 |
-2 786 685 |
-2 786 685 |
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Annual period profit (loss) |
-982 119 |
-1 085 185 |
-444 526 |
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Total equity held by shareholders and partners in parent company |
846 120 |
263 169 |
909 130 |
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Total equity |
846 120 |
263 169 |
909 130 |
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Total liabilities and equity |
4 306 345 |
3 130 661 |
2 338 793 |
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Consolidated income statement
(In Euros)
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|
01.01.2024 -
30.06.2024 |
01.01.2023 -
30.06.2023 |
Note |
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Revenue |
1 305 327 |
270 769 |
11 |
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Other income |
7 198 |
4 636 |
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Work performed by entity and capitalised |
275 301 |
282 793 |
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Raw materials and consumables used |
-1 043 961 |
-93 127 |
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Other operating expense |
-538 222 |
-320 150 |
12 |
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Employee expense |
-721 973 |
-517 658 |
13 |
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Depreciation and impairment loss (reversal) |
-42 628 |
-9 458 |
6,7 |
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Other expense |
-8 642 |
-5 632 |
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Operating profit (loss) |
-767 600 |
-387 827 |
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Interest expenses |
-137 120 |
-56 969 |
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Other financial income and expense |
-77 399 |
270 |
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Profit (loss) before tax |
-982 119 |
-444 526 |
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Annual period profit (loss) |
-982 119 |
-444 526 |
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Profit (loss) from shareholders and partners in parent company |
-982 119 |
-444 526 |
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Consolidated statement of cash flows
(In Euros)
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|
01.01.2024 -
30.06.2024 |
01.01.2023 -
30.06.2023 |
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Cash flows from operating activities |
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|
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Receipts of sales of goods and rendering of services |
843 854 |
205 681 |
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Payments to suppliers for goods and services |
-1 205 401 |
-714 684 |
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Payments to employees |
-410 201 |
-264 531 |
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Other cash flows from operating activities |
-247 943 |
-87 090 |
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Total cash flows from operating activities |
-1 019 691 |
-860 624 |
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Cash flows from investing activities |
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Purchase of property, plant and equipment and intangible assets |
-511 638 |
-93 452 |
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Other cash payments to acquire other financial investments |
0 |
-2 377 |
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Interest received |
51 |
63 |
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Total cash flows from investing activities |
-511 587 |
-95 766 |
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Cash flows from financing activities |
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|
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Loans received |
1 847 705 |
908 894 |
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Other cash inflows from financing activities |
202 563 |
0 |
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Total cash flows from financing activities |
2 050 268 |
908 894 |
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Total cash flows |
518 990 |
-47 496 |
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Cash and cash equivalents at beginning of period |
92 522 |
722 796 |
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Change in cash and cash equivalents |
518 990 |
-47 496 |
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Cash and cash equivalents at end of period |
611 512 |
675 300 |
Consolidated statement of changes in equity
(In Euros)
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Issued Share Other Retained capital premium reserves earnings(loss) |
Total |
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|
|
31.12.2022 |
1 686 001 |
612 327 |
750 000 |
-2 786 685 |
261 643 |
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Annual period profit (loss) |
0 |
0 |
0 |
-444 526 |
-444 526 |
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Changes in reserves |
0 |
0 |
1 092 013 |
0 |
1 092 013 |
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30.06.2023 |
1 686 001 |
612 327 |
1 842 013 |
-3 231 211 |
909 130 |
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Annual period profit (loss) |
0 |
0 |
0 |
-640 659 |
-640 659 |
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Changes in reserves |
0 |
0 |
-5 302 |
0 |
-5 302 |
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31.12.2023 |
1 686 001 |
612 327 |
1 836 711 |
-3 871 870 |
263 169 |
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Annual period profit (loss) |
0 |
0 |
0 |
-982 119 |
-982 119 |
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Changes in reserves |
0 |
0 |
1 565 070 |
0 |
1 565 070 |
|
30.06.2024 |
1 686 001 |
612 327 |
3 401 781 |
-4 853 989 |
846 120 |
* In the first half of 2024, the voluntary reserve increased in the amount of EUR 1,559,945 as of 30.06.2024 and the option reserve of 5,125 euros are reflected in changes in other reserves.
For additional information please contact:
Jason Grenfell-Gardner
J. Molner AS
Management Board member
+372 536 00 346
jason@jmolner.com
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