BICO Group AB Class B ((SE:BICO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for BICO Group AB Class B painted a mixed picture of the company’s performance in Q2 2025. While the divestment of MatTek and Visikol bolstered the balance sheet, challenges in the Lab Automation segment and macroeconomic pressures introduced uncertainties. Despite strategic restructuring efforts, negative trends overshadowed positive developments.
Divestment of MatTek and Visikol
BICO successfully divested MatTek and Visikol to Sartorius for USD 80 million, which significantly strengthened its balance sheet. This transaction resulted in a net cash position of approximately SEK 1.4 billion, providing a solid financial foundation for future endeavors.
Focus on Lab Automation and Life Science Solutions
Following the divestment, BICO restructured its business areas, concentrating on Lab Automation and Life Science Solutions. This strategic shift received positive feedback, particularly for SCIENION’s growth and profitability, indicating potential for future success in these sectors.
Operational Excellence in Working Capital
BICO demonstrated operational excellence by achieving a positive effect of SEK 29 million in changes in working capital. This achievement underscores the company’s commitment to improving operational efficiency and financial management.
Negative Organic Growth
In Q2 2025, BICO reported sales of SEK 324 million, with a negative organic growth of 17% and total sales growth of negative 23%. These figures highlight the challenges the company faces in achieving sustainable growth.
Significant Challenges in Lab Automation
The Lab Automation segment reported sales of SEK 48 million, experiencing a negative organic growth of 58%. This decline was attributed to fewer project starts, project delays, and a significant reestimation of project hours, presenting a critical area for improvement.
Negative Profitability Metrics
BICO’s adjusted EBIT was negative SEK 49 million with a margin of negative 15%, and cash flow from operating activities was negative SEK 28 million. These negative profitability metrics reflect the ongoing financial challenges the company needs to address.
Impact of Macroeconomic Conditions
BICO faced macroeconomic headwinds, including cuts in NIH funding and ongoing tariff issues. These factors hampered demand and led to delayed CapEx investments, particularly impacting the Academia sector.
Forward-Looking Guidance
Looking ahead, BICO is implementing strategic changes, including leadership and process enhancements, to address current challenges. The company aims to capitalize on the strong demand in the Lab Automation market despite the 58% decrease in sales due to project delays. The Life Science Solutions segment showed flat sales growth, aligning with industry peers, suggesting a stable outlook in this area.
In summary, BICO Group AB Class B’s earnings call highlighted a complex landscape of achievements and challenges. While strategic divestments have strengthened the financial base, significant hurdles remain, particularly in the Lab Automation segment. The company’s forward-looking strategies aim to navigate these challenges and leverage market opportunities.