Good day, and thank you for standing by. Welcome to the Vistin Pharma Quarterly Report Q3 2025 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Alternatively, you may submit your question via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Magnus Tolleshaug, CEO. Please go ahead.
Thank you. Good morning, everyone, and welcome to this third quarter presentation of Vistin Pharma. My name is Magnus Tolleshaug, CEO of the company, and with me today, I have our CFO, Mr. Alexander Karlsen. I will now start by going through the highlights of the quarter. The revenue in the third quarter ended at NOK 109 million versus NOK 106 million in the third quarter of 2024, an increase of 3%. The increased revenue was driven by sales volumes, which was up 10% compared to the same quarter last year. The year-to-date revenue is NOK 342 million compared to NOK 316 million year-to-date last year, an increase of 8%. The EBITDA ended at NOK 28 million compared to NOK 29 million in the third quarter last year.
We deliver a strong EBITDA of NOK 28 million, positively affected by higher sales volume and offset by somewhat lower global metformin prices compared to the same quarter last year. The EBITDA year-to-date is NOK 89 million compared to NOK 77 million year-to-date last year, an increase of 16%. We've had an all-time high production volume in the quarter with 1,600 metric tons of metformin produced. Currently, we see no changes in demand from customers because of the U.S. tariff discussions. We have a net debt of NOK 18 million as of end September. Vistin Pharma, we are a pure-play metformin company supporting patients worldwide in a growing market. Diabetes is really one of the largest health emergencies in the 21st century, and metformin is typically the gold standard treatment of type 2 diabetes.
That's also why we see a good growth opportunity being a leading global producer of premium-quality metformin. Also, since metformin is, for the patients in the world, cheap, efficacious, and safe, it's also the first choice for prescribing doctors. The market demand for metformin is expected to continue to grow by 4% to 6% on a compound annual growth rate, according to the International Diabetes Federation. The global market share of Vistin is today about 9% and will continue to be around 9% to 10% as we ramp up to full capacity. Here we see a global overview of the diabetes cases in the world. Today, there's about 590 million people estimated to be living with diabetes. Out of those 590 million people, about 10% is diabetes type 1, and 90% of those are diabetes type 2.
This is expected to increase by approximately 45% to up to 850 million people in 2050. It's really a global epidemic. Some key facts about. Diabetes, which is worthwhile looking at. Around 590 million adults in the age 20 to 79 years are living with diabetes. This is representing about 11% of the world's population in this age group. Also, an estimated around 250 million adults are living with diabetes. They are unaware that they have the condition, so that's a matter of time before they are diagnosed. In 2024, more than 3 million people died as a result of diabetes. This corresponds to about 9% of the total deaths caused in the world. Interestingly enough, also, around 635 million adults in the same age span are living with what is called impaired glucose tolerance, so about 12% of the world's population in this age group are living with that.
This is a pre-state of diabetes, which typically also can be treated with metformin. Vistin Pharma, we sell and export globally, all the way from Japan in the east to the U.S. and LATAM in the west. Typically, we sell to medium to large-sized reputable pharmaceutical companies, who then transform our API, the active pharmaceutical ingredient, into tablets and distribute that around the world. Typically, we know that our API is registered and used by patients in more than 100 countries in the world. In Vistin, we've had a long and successful record of growth. In 2022, we invested in a new manufacturing line. From 2023, as you can see on the graph below, it has materialized into new sales. With that, I would like to hand over to our CFO, Alexander Karlsen, who will bring us through the more details of the third quarter results.
Thank you, Magnus. Let's start to have a look at the volumes. The sales volume increased from 1,300 metric tons in the same quarter last year to 1,430 metric tons in Q3 2025, which is a 10% increase. Looking at the right side here, you can see the sales volume year-to-date, where we have sold around 4,300 metric tons compared to 3,800 metric tons year-to-date last year, which is a nice 500 metric tons increase or 13%. As Magnus mentioned, we had a revenue increase of around NOK 3 million or 3% compared to the same quarter last year. Our ASP, or average sales price in Q3, is lower than the previous quarter, Q2, due to product mix. As we ramp up volume and sales volume during the year, we have more generic volume that's lower our ASP.
There has been a small decrease in raw material prices since the summer and market prices of methylamine fluctuate with the global raw material prices, with corresponding revenue effects for Vistin . Part of the production volume in Q3, as in Q2, is used to increase our safety stock to secure high service levels to premium customers. We do now also have two customers that pay us for having safety stocks of finished goods locally. Year-to-date, revenue is NOK 342 million compared to NOK 360 million last year, an 8% increase. Margin came in at 68% in the third quarter, driven by stable production and favorable conditions of scales as we increase our volume. As mentioned, there has been some decrease in raw material prices, but the prices are far less volatile now than we have seen in the two preceding years.
Looking at the result and EBITDA, NOK 28 million, positively affected by increased sales volume, but offset by lower global methylamine prices compared to the same quarter last year. In the third quarter, we had an EBITDA margin of 26%, which we are very satisfied with and represents good commercial execution. The net FX effect on EBITDA versus the same quarter last year was insignificant. Year-to-date, we have had a really nice increase of EBITDA from NOK 77 million year-to-date last year compared to NOK 89 million year-to-date this year, which represents a 16% increase. Having a more detailed look at the income statement, going below the EBITDA and have a look at depreciation, we had an increase there in this quarter. Depreciation came in at NOK 6.7 million. Highlight that NOK 1.3 million of that is a one-time effect of asset replaced.
Having a look at the earnings before interest and taxes, it came in at NOK 21.3 million compared to around NOK 24 million last year. We had a net finance income in the third quarter that was mainly driven by gain on FX hedging contracts in the quarter. We had a net loss of NOK 2.8 million in the same quarter last year, driven by an opposite effect, that's some loss on FX hedging contracts last year. That gives us a profit before tax of close to NOK 24 million compared to around NOK 21 million last year. Net profit ended at NOK 18.5 million compared to around NOK 16.6 million same quarter last year. Looking at the year-to-date net profit, it's close to NOK 60 million compared to around NOK 43 million last year.
Moving on to the balance sheet, first asset side. Non-current assets, around NOK 235 million compared to NOK 245 million. A decrease given that we had the big net investment in 2022 and 2023, and we now have less investment than we depreciated. Looking at the current assets, there's an increase in inventory, as we mentioned, that we have built some more safety stock. Looking at the receivables, also an increase, and we had high sales in September. It takes around 45 to 60 days before we get the payments from the customers. Total assets, around NOK 425 million compared to around NOK 388 million at the end of Q3 last year. Looking at the equity and liability side, total equity around NOK 313 million compared to close to NOK 311 million last year, with a dividend payment in June that reduced the share premium. We still have a strong balance sheet with around 74% equity ratio.
Long-term liabilities, NOK 27 million, while short-term liabilities around NOK 85 million. As of end September, we had a net debt of around NOK 18 million. That gives us total equity and liabilities of NOK 425 million compared to around NOK 388 million last year. With that, Magnus, I think I'm done with the financials, and I give the word back to you.
Thank you, Alexander. I will now go through a summary of the third quarter presentation. We had a solid quarter with an EBITDA of NOK 28 million and a 16% increase year-to-date compared to last year. We deliver an all-time high production volume of 1,600 metric tons in the quarter. We had a sales volume increase of 10% compared to the same quarter last year, an 8% increase year-to-date. Our continued focus on costs and good commercial execution is showing positive effects year-to-date. Regarding the market price of metformin , it typically fluctuates with the global raw material prices and influences revenue. As long as we are able to procure reasonably priced raw materials and obtain a gross margin of more than 60%, we typically are able to get good financial results on the bottom line.
The metformin market is expected to continue to grow by 4% to 6% on an annual basis. As mentioned, we currently see no changes in demand due to the U.S. tariff announcements. We are, of course, continuously monitoring the situation for potential supply chain knock-on effects. We have a long-term renewable energy supply agreement, which we signed with Statkraft until 2032. This provides us very predictable power prices, irrespective of market volatility. This secures also 100% green renewable hydropower long-term for us. There is an attractive long-term growth potential as the remaining manufacturing capacity becomes fully available and optimized. We believe that Vistin Pharma is strategically well-positioned, as many European clients prefer high-quality supplies, near-shore production, and an attractive ESG profile.
With that, we are done with the third quarter 2025 presentation and are ready to open up for questions.
Thank you. As a reminder, to ask a question, please press Star 1 and 1 on your telephone and wait for your name to be announced. To whisper your question, please press Star 1 and 1 again. To ask a question via the webcast, you may submit the question on the Questions space. There are no questions on the audio at this time. I would like to hand back over for any webcast questions.
Yes, thank you. There is a question here coming in. If we could elaborate a bit more on the 15% ownership of CF Pharma in Hungary. Yes, so we have last year purchased 15% of CF Pharma, which is a CDMO company located in Budapest in Hungary. This 15% gives us access, good access to management of the company. So we're able to follow and monitor the development of CF Pharma. We are continuously evaluating our options. However, said that we are opportunistic regarding how to create growth further for Vistin Pharma, it could be either via organic growth or also M&A activity.
There's a question here also about, I just need to translate it. It's about production capacity and when we will be at 7,000 metric tons. If you look at the third quarter, which was a good quarter from a production perspective, we produced 1,600 metric tons. If you multiply that by four to represent the quarters, you get to 6,400 metric tons, which is obviously then the current run rate. We are continuously working our way to ramp up towards our goal of 7,000 metric tons. I think it's fair to say that the Pareto rule always typically applies also with the 80/20 rule, where the first 80% of the volume and the last 10% of the volumes are more tweaky from a technical perspective. We have very skilled people in the manufacturing organization, so we are secured to get there. We are planning to ramp our way through 2026 and also sell as much of that as we can.
There's a question about the strong gross margin, 68% in the quarter. As you can see, this is a similar gross margin in the third quarter last year. Generally, the third quarter is a very strong production month for us. We generally produce more than we sell. There is a quarterly effect, which gives slightly higher gross margin that we add more inventory and liquidate it than in the other quarters. We expect gross margin more on the first and second quarter level in Q4. There's also a question about why the gross margin didn't give a similar effect on EBITDA, et cetera. It's also related that we have some more salary accruals in the third quarter, as in last year, than in the first and second quarter.
Yeah, and there's a question here about whether there have been any changes in the customer pool, in geography or size surrounding the last couple of years. I think the customer pool has been relatively stable for Vistin . We have some medium-sized and large-sized pharmaceutical companies that we have strategic long-term partnerships with. Of course, as we ramp up volume, we grow with the existing customer base, but we also work very actively with new leads and new customers. Those may come from, I would say, both Europe, Asia, Southeast Asia, and Latin America, or Eastern Europe. The geographical footprint is relatively the same, but I think the footprint of the, let's say, newest volume is maybe coming from outside of Europe. That's also where the largest growth is. We try to maneuver our sales efforts also where the good growth in volumes on the patients are.
There's another question here about whether we plan to obtain our 10% market share all the way to 2030. Today we have about 9% market share. With the fully optimized manufacturing sites, we would probably have around 9 to 10%. I think the good thing with metformin is that it's a growing market. We are growing in a growing market. I think actually by 2030, the market may have even grown past us so that we may have lower market share because the demand out there is higher than the total capacity that we may be able to deliver. That's quite interesting.
There's also a question here regarding production growth and potential. Volume above 7,000 metric tons. What we can comment on is that our main focus now is to produce and sell 7,000 tons. We will then see when we are there if there is potential for further expansion and if there are customers that potentially can take more volumes. For now, the 7,000 ton is what we work against.
There's a question regarding stock. Our stock of raw materials and finished goods are probably at the level where we will expect it to be going forward. Of course, there will be quarterly fluctuations, but I don't expect any significant increase in stock from now.
Okay. I think that was most of the questions. Thank you very much for your questions. I think we are, -- and we can close the conversation and the call.
This concludes today's conference call. Thank you for participating. You may now.