Comments by the CEO and Group President

Q2 focused on cost optimization

In line with our strategic priorities, we launched a restructuring program in Q2 with the aim of reducing both production cost and operating expense. We reduced with eight headcounts that results in an annual saving impact of 8 MSEK. We will continue our efforts to lower the structural cost going forward.

Sales in the second quarter declined organically by 3.6%, primarily driven by lower instrument sales in the US. Currency impacted sales with +1.1%. YTD 2024 we report an organic growth of 1%.

Gross margin improved to 43.1% in the quarter vs LY (42.7%) despite lower sales. Utilization of the manufacturing capacity in Q2 was lower than Q1 and effected the margin negatively because of lower instrument sales.

Adjusted for one-time costs, operating expenses in the quarter decreased 5% over LY with decreasing costs for all functions except R&D where we continue to invest.

Adjusted for the one-times costs reported in the quarter the operating margin improved to 7.2% (6.2). Cash flow from operating activities continued to improve to 14 MSEK (3) and liquidity remains solid with cash and available credit facilities at 82 MSEK.

First 100 days as CEO

Through the countless introductory meetings, I have had with team members across our organization I have learned that Boule is resting on a foundation of truly great people that are united by the desire to deliver quality diagnostics and great service to our customers.

Visiting our sites in Sweden, US, and our partner-site in India I have realized that Boule has some unique capabilities in our ability to develop and manufacture an entire hematology lifecycle from high quality, robust analyzers through proprietary reagents and controls to aftermarket service, support, and continuous education.

And speaking with partners, distributors, and customers I have learned that Boule, with its history of pioneering hematology, dating back to the 1950’s, has earned a strong brand recognition in the market and a very loyal following of both distributors and end-users.

From a strategic perspective however, I see a need for us to challenge the way we do things by creating a culture of continues improvement and further develop our ability to execute.

We operate in an attractive but highly competitive decentralized hematology market and therefore we need to improve our processes and operating efficiency across all functions to secure our profitability and position in the market.

With that understanding I have defined the following three focus areas:

• Expand operating margins through disciplined execution and reductions in structural cost

• Accelerate growth through strategic organic investments

• Building a better, stronger, growth-oriented portfolio

I would like to thank my team for all the hard work done in the last months, and I am thankful for the trust from our shareholders and customers. 

Torben Nielsen

CEO and Group President