In this interim report, the aXichem group is presented, which consists of aXichem AB (publ), Incendia Pharma AB and aXichem AS (Norway). Amounts in brackets refer to the corresponding period of the previous year.
aXichem’s development 2024-01-01 – 2024-12-31
Turnover and results
The group's net sales amounted to SEK 8,570 thousand (SEK 1,809 thousand).
Operating profit amounted to SEK -15,827 thousand (SEK -17,318 thousand).
The group's profit after tax amounted to SEK -17,815 thousand (SEK -20,814 thousand).
Financial net SEK -1,956 thousand (SEK -3,471 thousand).
Cash flow and financial position
The group's cash and cash equivalents on December 30, 2024 amounted to SEK 14,359 thousand (SEK 4,309 thousand).
The equity ratio amounted to 94% (79%).
Investments
Investments in intangible, tangible or financial fixed assets have during the year been with SEK 6,499 thousand (SEK 5,103 thousand).
Depreciation
Depreciation of intangible and tangible fixed assets has during the year been done with SEK 4,277 thousand (SEK 3,834 thousand).
Stock data
Profit as of December 31, 2024 corresponds after tax to a profit per share of SEK -0,46 (-1,03).
Equity per share at the end of the period amounted to SEK 1,19 (SEK 2,26).
aXichem's development 2024-10-01 – 2024-12-31
Turnover and results
Net sales amounted to SEK 1,391 thousand (SEK 275 thousand).
The operating profit amounted to SEK -4,864 thousand (SEK -4,801 thousand).
The group's profit after tax amounted to SEK -5,314 thousand (SEK -5,532 thousand).
Financial net SEK -418 thousand (SEK -706 thousand).
Investments
Investments in intangible, tangible or financial fixed assets amounted to SEK 2,764 thousand (SEK 523 thousand).
Depreciation
Depreciation of intangible and tangible fixed assets amounted to SEK 1,137 thousand (SEK 1,016 thousand).
Share data
After tax, the periods result corresponds to a result per share of SEK -0,10 (SEK -0,26).
Events during the period
First quarter
Second quarter
Third quarter
Fourth quarter
Events after the period’s end
CEO’s statement
The operating year 2024 has ended and the year has been aXichem's strongest so far in terms of sales, with net sales for the year amounting to 8,570 thousand, which is very gratifying. Looking at the year’s fourth quarter net sales amount to SEK 1,391 thousand, coming from sale of aXivite, and the operating profit of the quarter amounts to SEK -4,864 thousand. Operating expenses for the quarter amount to SEK -6,346 thousand and are primarily linked to costs for marketing and sales activities and to costs for completing the company's application for Feed Additive approval in the EU.
The launch of aXiphen in Brazil continues
We entered 2024 with a fresh approval in Brazil for aXiphen and a goal to be able to conduct tests with a number of poultry producers during the year, in collaboration with our distributor Chr. Olesen. It is clear that the need to prevent salmonella is great, as is the interest from producers. The marketing activities in the form of advertising have given the product good attention. However, it took a little longer than we expected to start testing with larger poultry producers, but the process is underway and Chr. Olesen's team, like us, is positive about the development and the potential of aXiphen. We received this confirmation in the form of the order we received from Chr. Olesen after the end of the period. The value of the order, which will be delivered according to call-off in 2025, amounts to approximately SEK 7 million. A really good start to 2025 and an important milestone for us in the launch of aXiphen.
Two positive studies on the efficacy of aXiphen completed
During the fourth quarter, we continued our work on supplementary studies for our application to the European Food Safety Authority (EFSA) for Feed Additive approval for phenylcapsaicin in the EU. After the end of the period, on February 4, 2025, we announced that we had conducted a total of three efficacy studies with aXiphen, two of which show significant data regarding positive effects as a salmonella inhibitor, but that one study did not fully provide the results we desire in order to be able to supplement the application. EFSA requires three studies with significant positive data and we therefore decided to expand with another study. Our assessment is that when it is completed, we will have the final part in place for a complete application. We will notify the market when there is any significant change in the process and when submission is made.
aXivite had its best year yet in 2024
In the dietary supplements business area, aXivite has gradually shown its potential during the year. The training and weight control segments are strongly characterized by various trends and the US market is leading the way. In the US, we continue our collaboration with SEE Nutrition, which during the year gave us sales of three million SEK. Through SEE Nutrition, we continuously receive various ideas from producers who want to utilize the effect of phenylcapsaicin. Some of these ideas fit like a glove for our ingredient, one such example is the Silver Fern Brand, which has received undividedly positive reviews for its product "Metabolism", which contains aXivite, among other things. In order to be able to satisfy more exciting requests for end products, we launched a new formulation of aXivite, aXivite® TR (Target Release), in the fourth quarter. aXivite® TR is specially designed and developed to be the active ingredient in dietary supplements in the sports, training and weight control segment, where the heat of the product is not felt, but where the effect of phenylcapsaicin is the same.
Our agreement with the pharmaceutical company Uriach, which gives Uriach exclusivity for a melatonin formulation with aXivite, has contributed to our sales in 2024 in an excellent way. This means that the commitment within the framework of the agreement, which included 400,000 Euros has been well fulfilled. Uriach has launched its melatonin product, Aquilea – with aXivite as a bio-enhancer, in Spain in 2024. The plan is now for Portugal, Germany, Austria and Romania to follow and it will be exciting to follow the development.
With strengthened cash position into a new financial year
I would like to take this opportunity to thank the shareholders for the trust they have shown in the company during the year, not least in connection with the rights issue of units that was carried out in March 2024 and the exercise of the options, TO1A, in October. This provided the company with a total of SEK 46 million before issue costs during the year. With this, we have been able to continue to drive the business forward, carry out important studies for the Feed Additive application and activity for production, market and sales. It also feels satisfying that the company is now debt-free after repayment of the convertible loan, equivalent to approximately SEK five million, issued by Formue Nord.
Together with aXichem's team and board, I look forward to continuing the work on the commercialization of phenylcapsaicin as an ingredient for dietary supplements and additives in animal feed. I plan to be in Stockholm at the Aktiespararna event Stora Aktiedagen on March 12, 2025, at 2:20 PM. I hope that those of you who have the opportunity will listen in. Please also follow aXichem on LinkedIn where we regularly post about the company's activities.
Torsten Helsing, CEO
About aXichem AB (publ)
aXichem's business concept is to develop, patent and market nature-analog industrial compounds. aXichem's product is a natural analog substance called phenylcapsaicin, which is a synthetically produced and patented capsaicin. As phenylcapsaicin is synthetically produced and has several advantages compared to natural capsaicin, such as controllable quality and production process.
The product has benefits that makes it commercially interesting in several application areas, for example as ingredient in animal feed, as ingredient in dietary supplements, as a bio-enhancer and as a bio-repellent in marine applications. aXichem is currently marketing the product under different brands in two prioritized areas: aXivite® for dietary supplements and aXiphen® for poultry feed. aXiphen® has shown properties as a growth promoter and anti-salmonella additive in studies made in commercial poultry production settings. In the market segment for sports nutrition products aXivite® is today included in several products for weight control, improved metabolism, and gut health.
aXichem aims to become a global supplier of industrial natural analogue chemicals to players in the chemical industry who manufacture products containing aXichem's raw materials. The company’s share is listed on NASDAQ First North since 2013.
Future prospects
aXichem's commercialization of phenylcapsaicin under the brands aXiphen® in the animal feed market and aXivite® in the food supplement market continues. The production capacity and logistics through subcontractors are in place, as is a production process optimized for commercial volumes. The pace of development in the establishment of the products is determined by market approvals in the strategically important countries or regions, starting with the EU, USA, Brazil and India. aXichem cooperates with specialized distributors, who either have their own production or cooperate with innovative leading producers.
Within the Dietary Supplements business area, the company has market approval for aXivite® in the EU and in North America, and market establishment of the company's product is ongoing.
Within the Animal Feed Business Area, aXiphen® has been approved in Brazil since December 2023 for sale as an ingredient in chicken and pig feed, and market establishment is in an early phase. An application for market approval for aXiphen® in the EU is being processed by regulatory authorities and a corresponding application for the US market is being prepared. The company's strategic focus is to prioritize Brazil and the EU, as these markets have the best conditions for an initial establishment.
Financing
February 1, 2024, it was announced that the company's board, subject to the approval of the general meeting, had decided to carry out an issue of shares and warrants ("Units") with preferential rights for existing shareholders (“Rights Issue”) of approximately SEK 40.3 million before issue costs. A Unit consisted of five A shares and five warrants of series TO1A. The subscription price per Unit amounted to SEK 7.50, corresponding to SEK 1.50 per A share. The warrants were issued free of charge. The rights issue was covered to 70 percent by subscription and guarantee commitments. The boards decision was approved at an extraordinary general meeting, which was held on March 6, 2024.
The board also decided to take out a new convertible loan from Formue Nord Fokus A/S of approximately SEK 5.3 million, which partially replaced the existing convertible loan.
The outcome of the rights issue, which was 70 percent subscribed, was announced on March 26, 2024. Through the rights issue, approximately SEK 28.2 million was added to aXichem before issue costs. The number of shares in aXichem increased by 18,809,290, to 40,305,615, and the share capital increased by SEK 3,761,858, to SEK 8,061,123.
During the period 1–7 October, warrants of series TO1A were exercised at a rate of SEK 0.95. The warrants' subscription price corresponded to 70 percent of the volume-weighted average price for the company's shares on the Nasdaq First North Growth Market. The outcome from the exercise of the warrants series TO1A amounted to 17,862,853 shares. In addition, a targeted new issue of 946,437 A shares was carried out, to the investors who provided a so-called top guarantee in connection with the exercise period regarding the warrants of series TO1A. This meant that the company received SEK 18,809,290 before transaction costs and that the number of shares increased by 18,809,290, from 40,305,615 to 59,114,905, and that the share capital increased by a further SEK 3,761,858, from SEK 8,061,123 to 11,822,981 SEK.
Incentive program – Employee stock options
At the annual general meeting on May 31, 2022, it was decided on an option program of series 2022/2026 for employees and key persons in the company comprising 400,000 options with the right to subscribe for 400,000 A shares. As of the balance sheet date, 270,000 options were allocated to staff and key persons, of which 101,250 were vested.
The employee options are earned over 4 years, with a quarter each year, provided that the participant is employed by or otherwise engaged in the company on the grant date. The staff options are awarded free of charge. Earned employee options can be exercised during a three-year period, however no earlier than three years after the respective grant date. Each employee option gives the right to subscribe for 1 A share at a subscription price that corresponds to 140 percent of the volume-weighted average price for the company's A share during the five trading days immediately preceding the day on which the employee options are awarded. The subscription price and the number of A shares to which each employee option entitles may be subject to recalculation as a result of a bonus issue, split, issues or similar measures. In order to enable the delivery of shares according to the incentive program, it was also decided to issue a maximum of 400,000 warrants.
Ownership structure
For information about the company's owners, see the company's website www.axichem.com under https://www.axichem.com/investor-relations/#investor-structure
For information on insider trading, see the Financial Supervisory Authority's register.
Certified Adviser
Västra Hamnen Corporate Finance is aXichem’s Certified Adviser.
Number of shares
The number of shares and votes in the company as of 31 December 2024 was 59,114,905 and the company’s share capital amounted to 11,822,981 SEK SEK. The company has only one class of shares, shares of series A, with 1 vote per share. The quota value is 0.20 SEK per share.
Definition of key figures
Solidity
Adjusted equity as a percentage of total assets.
Earnings per share
Profit for the year divided by the average number of shares.
Equity per share
Equity divided by the number of shares in the market at the end of the year.
Personnel
The group had as of 31 December 2024 seven employees.
Significant risks and uncertainties
Regulatory issues are considered to be the single largest risk for the company. The effects of Covid-19 still have some impact on the company’s operations in Asia. The changed security situation in Europe and the tragic development in Ukraine do not currently affect aXichem’s operations, but we are following the development closely in order to be able to manage any possible effects.
Review
This interim report has not been reviewed by the company’s auditor.
Financial calendar
Year End Report 2024 2025-02-27
Q1 Report, Jan – March 2025 2025-05-22
Annual Report 2024 2025-05-28
Annual General Meeting 2025-06-18
Q2 Report, Jan – June 2025 2025-08-28
Q3 Report, Jan – Sept 2025 2025-11-28
Year End Report 2025 2026-02-26
The Board of Directors and the CEO assures that the interim report provides a fair overview of the company’s operations, position and results, and describes the significant risks and uncertainties that the company faces.
Lund, 27 February 2025
The Board of Directors of aXichem AB (publ)
The information was submitted, through the care of the contact person below, for publication on 27 February 2025, at 08:30 AM CET.
The report is published on the company's website under Investor Relations. Direct link to the report: https://www.axichem.com/investors-relations/#financial-reports
Company Contact
Torsten Helsing, CEO
T. +46 70 686 33 55, E. torsten.helsing@axichem.se