Thank you for standing by. Welcome to the Vitrolife report on operations for 2021. At this time, all participants are in a listen-only mode. After the presentation, you will have the opportunity to ask questions. To ask a question during the session, you will need to press star and one on your telephone. I must advise you that this conference is being recorded today on Wednesday, the February 16, 2022. Now, without any further ado, I'd like to hand the conference over to your first speaker today, Thomas Axelsson. Please go ahead, Thomas.
Thank you very much, and welcome everyone to Vitrolife report on operations 2021. The speakers of today will be the new CFO, Patrik Tolf, and myself, Thomas Axelsson, the CEO of the company. Please go to page number two. The headlines and what we would like to describe and go over together with you today is a situation where we are continuing showing growth and, the most important thing, a new Vitrolife are being created partly through an acquisition. The highlights for the full year is that, I will just do it quickly and then go into quarter four then, and we will do the presentation together of that one.
From January to December, the full year, we had our sales increased by 39% in local currency, and the total sales of the year was SEK 1,681 million and that was equal to 35% increase. The EBITDA adjusted for non-recurring acquisition costs, those were SEK 101 million, amounted to SEK 645 million, and there was a margin of 38%. The EBIT margin totally was a margin of 32%. During the year, as you know, we did a major acquisition. That was done during quarter four. Let's go into quarter four then. Sales, good sales, and was equal to 35% increase in Swedish currency, and it was 34% in local currency. The sales total was SEK 514 million.
The EBITDA, we will go through this more in detail later on, but adjusted for non-recurring acquisition-related costs, and those were SEK 79 million, adjusted for those, the EBITDA was SEK 164 million and a margin of 32%. EBITDA reported then without adjusted was SEK 85 million and a margin of 16%.
All of that is a reflection on Vitrolife acquired 100% of the Igenomix business in quarter four. After the end of the period, you know, we did acquisition, and then from the first of January, we have a new management team and a new structure in place, that we will go through at the end of this presentation go through.
The board proposes a dividend of SEK 0.8, and that is a total amount of SEK 108 million. Everything, of course, is in Swedish krona, so I will not continue to say that. Please go into page number three, and we will start to look upon the sales and growth per market region. I will repeat what I said before that when we look into quarter four, we have a situation where Genetic Services is Igenomix that are only included in the numbers for one month, for the month of December.
Let's start on this one, and that's why we have, you know, looking on the growth rate and also the organic growth and trying then to give a picture upon, you know, the Vitrolife sales and then also what it is in real numbers. Start from the right side and Japan Pacific. That's always the most volatile market since we have a situation in Japan Pacific that they are using time-lapse equipment for their cycles more than in any other regions. If we have good orders there, then it is an excellent quarter, and if we don't have so many orders, then of course in comparison, it can be a quarter where we have less or actually no organic growth. That is the situation this quarter.
We have a negative organic growth with -1 3%, and that is mainly due to large orders last year. Otherwise, the business looks good. As you can see, we got some shares and growth rate there from the Genetic Services. The next market, if we go into the geographical area, is Asia, and it is mainly then China. Okay. Pandemic situation, what has happened, and as we are saying, what I do believe after contacts with the market is that the market is almost back to normal cycle numbers, but it is a big difference between the regions where some are overperforming and some are not yet up to normal numbers. That's the situation for China, Asia then. I'm quite pleased that the organic growth is 4%.
There are situations where our sources is that China is not yet back. They were coming back more or less, and then due to some COVID outbreak during Q4 and some carefulness, clinics are not at Q4 doing 100% of normal cycles. The same situation is for where we have territories like geographical markets in the territory that are highly depending upon IVF tourism. Total sales for that area was SEK 95 million then, and the growth rate compared to last year in local currencies was 14%. Next region, EMEA, total sales, SEK 218 million. It's a good situation. Organic growth, 5%, and the total growth rate was 30% then.
The news regarding this quarter compared to earlier quarter is that our belief is that the public sector in those territories are more or less back to a normal situation. What we can see is a slighty, most likely, growth within those markets. The market that really is growing after the pandemic or during the recession has been U.S., and U.S. are then of course included in our geographical area, Americas.
We have had an organic growth of 15%, and it is total sales in that territory right now, SEK 139 million. That's a growing area. It has also been one of our priorities, and the priorities strategically in moving or executing stronger in some areas is also a reason for the acquisition of the Genetic Services, Igenomix.
The growth rate because we are then also adding on the Genetic Services in that region is 95% compared to last year in local currencies. What has changed also after the acquisition is that Genetic Services, Igenomix, has a good position in the total territory from Chile up to Canada, and of course, the main business is in U.S. It's good that we have a business right now that is covering both those geographical areas, North, South America. Please then go to next page and see how it looks like compared to the different divisions that we had last year. Consumables, good growth, +9%.
What I'm very pleased with for the consumables is that the growth are in growth areas, and within our priorities, it is within new products that we are introducing and also within the vitrification. I wanna say that it is a situation where standard consumables are having more like a flat market. When you're introducing new products or those areas where consumables can grow, for instance, vitrification are growing well. Consumables sales, SEK 235 million. Technologies, w hat we see here is a negative growth of 12%. Sales was SEK 114 million. As mentioned before, it is a couple of territories that has good years. Comparison numbers with last year was tricky.
I wanna give an explanation for that because last year in Q2 and part of Q3, all customers were concerned about the cash flow and the future. They didn't put any final orders for installations of hardware in Q2, and we got orders in Q3 and beginning of Q4 for delivery. That's one of the reasons that we had a peak Q4 last year.
Otherwise, technology looks very, very well and moving in line with our expectations. Genomics, growth with 33%. Genomics is our business where we are selling different kits to IVF clinics or clinics that are performing, or laboratories that are performing right now pre-implantation analysis by themselves. Within genomics, the situation has been, and still are, the major part that we are distributing products still from Illumina.
Last year, we were able to do product development, and we launched our own kit, and those are currently being slowly changed at the laboratories. In these numbers, 33% is still the distribution products. Very, very pleased with that growth. That growth, if we go into the next, is Genomics, and Genetic Services is currently Igenomix. It is not including our own kits. Genetic Services only for one month, it was SEK 114 million in sales. To give you some picture then, because we looked earlier on the page three, sales and growth per market region, where are they strong? Yes, they are strong in Americas. Out of those 114, half exactly, SEK 57 million was in Americas.
A quick rough numbers only for one month, but I think it give you a good indication on where the markets currently are within Genetic Services is Americas, 50%. The next one in size is the EMEA region, and they had sales there of SEK 45 million, and that's 36%. Then Japan and Asia was standing for 7% of the total sales equally.
That reflects also, if we go back to the earlier division, I talked about Genomics, you know, the kits that we were selling, that they had good growth. When the Americas picking up in every line and also EMEA, those two are the reflections on where it already a selection tool and a help for the couples, for the clinics are using pre-implantation analysis.
That is mainly Americas, U.S., and after that, some countries in the EMEA regions, and the other countries are starting to do it more and more due to changes in regulations and also changes in clinical outcome and how they can charge for it. By that, I would like to, as I said, introduce Patrik for his first quarterly report in Vitrolife. Please, page number five, then change to page number five. Patrik.
Thank you. Good morning, everyone. Patrik Tolf is my name. I'll add a bit more flavor into the numbers here as we have presented in the report. If I start with the sales growth, you have heard Thomas explain that one. To repeat on that side, we continue to grow with 35% in the fourth quarter, whereof 30% is acquired growth. The same number applies for the full year, whereof 9% of the full year was acquired growth. You see also that the currency had a slight positive impact on the Q4 sales with 1%.
On the full year, we see that it had a negative impact on sales with 4%. If we move on to the gross margin, and you know that we report the adjusted gross margin, and the difference between the gross and the adjusted margin is excluding the amortized cost for intangible assets. If you look on the full year, you see that the difference is 1% unit, and that relates to previous acquisitions that was done in Vitrolife. The gap increases a bit now during the fourth quarter, and that is related to that we also take one month of acquisition amortization-related cost for the Igenomix acquisition.
The gross margin then in comparison with 2020 Q4 is a bit lower, so it's now 60%. A couple of things to address on that side is that first of all, we have then a different product mix. As Thomas explained, we are continuing to grow then in several areas. In particular then, we grow then in Genomics during the fourth quarter, but also then a bit of drop in Technologies. That has an impact then on the gross margin.
More to say is that the new division Genetic Services has an impact on the gross margin with about 2%-3% units on the lower side given the fact that they are a services business and a different structure in comparison with the other businesses in Vitrolife. On full year that impact is approximately 1% unit on the product mix there. In addition to that, we have also seen a bit of cost increases for freight costs.
We have also taken some costs for scrapping, and that is the scrapping is related to that we have actually increased the service level to our customers, which means that we have built up a bit of inventory, and then as a consequence of that, we've taken some cost of scrapping. If we move further on, you recognize the adjusted EBITDA, and as Thomas mentioned here, we basically add on the acquisition-related one-time cost here. That was SEK 79 million for the fourth quarter and SEK 101 million for the full year, and goes down to an EBITDA margin of 32% versus 38% for the full year.
We are then increasing a bit on the cost, and as you have seen that one in the fourth quarter, selling expenses have increased a bit. As a consequence of that, we have increased a bit of the customer activities. We have taken a few R&D-related one-time cost here that is then related for product certifications. Also, we have filled a bit of staffing gap, which has an impact on the operating cost side as well here. Adding back the one-time related cost here, that gives us an EBITDA margin of 16%. In comparison with the 32% here last year.
Further on, we have, as you know, done a couple of transactions then in order to fund the acquisition of Igenomix. We have then issued new shares among others, which means that if you then look on the earnings per share, that goes down as one consequence then of the dilution of about 20%. Also, if we look into the net debt to EBITDA, you see also that we have now a net debt position in comparison what we had before. The net debt is about SEK 1.7 billion in comparison with the net cash position of just below SEK 1 billion last year.
Looking into the net debt to the adjusted EBITDA, that is 2.7x , which is in line with or lower than what our objectives are on that side as well. As Thomas mentioned previously, the board has proposed the dividend with the same SEK 108 per share as it was last year with SEK 108 million. With those words, over to you again, Thomas.
Thank you very much, Patrik. Okay, let's go look forward. You know, we are right now into 2022, and the situation then to get an integration work together with these two, let's say, companies that currently are just Vitrolife. We have decided to do some organization and also changes towards how we will work and how we will define our business going forward.
Consumables going forward, consumables will be included Genomics. The situation there is that they are using similar production facilities. There are also situation where we are supplying products to customers that are used to buy in that side and the support they are using. It is built around from development, manufacturing, logistics, and the support that we are doing to the customers within the IVF side.
Technologies then the business area, which I think is the easiest one to explain, is the same as it was last year. It is built upon and why we have done that as a separate one is the competence. It is more about electromechanics, more about computer science. It is about the electronic manufacturing and all of those support that is needed to develop new technologies and continue to support the current one.
Genetic Services is the business coming from Igenomix. It is all about the reproductive genetic testing services, and of course, also including the other kind of testing portfolio that currently are within the Genetic Services. The biggest one is the pre-implantation side, and there are the logical short-term most synergies between the businesses.
That is how we will report it going forward within these three business areas, and also going forward regarding how we will do it in explaining the growth and opportunities. By growth and opportunities, go then to page number seven, the last one in this presentation for today. It looks very similar to what we said before.
The long-term total market growth is 5%-10% in monetary terms. As you can see, you know, it is reflecting on the value-adding business that are higher than the normal cyclic rate growth. That's why we will continue to broaden the product and service offering. We have had service offering before in the long-term outlook, and the consequence is the service offering right now within the Genetic Services going forward. That will be a very important part for the long-term outlook.
Expansion in sales in all different ways. Shortly explained that we can utilize the already decentralized organization within Igenomix, where they have subsidiaries in definitely more places than what the old medical device side has had, and also expansion in sales in the support that is needed to the different customer segments. By that, thank you very much, and I would like to hand over to the operator for question and answer session. Thank you very much.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. If you wish to remove yourself from the question queue, please press star zero. We do have a few questions coming through. Your first question today comes from the line of Jacob Lemke. Please go ahead, Jacob.
Hi, good morning, and thanks for taking my questions. If we start with Genetic Services and Igenomix, I believe it looks quite strong in the quarter. So maybe you can first of all comment on sort of the performance you've seen there, but also to what extent the revenues have been impacted by or benefited from COVID-19 services, and if you expect those revenues going forward.
Okay, thank you very much. I can do some quick explanations regarding it. Yes, you know, if we look upon the full year last year, so you have a feeling for the complete year, around 10% was COVID-related, and we are not including COVID-related revenues or profitability going forward. That's not our core business. If we are then, you know, so 10% on that side, and the core business then, if we are defining those outside COVID and also outside the area of, or say including the pre-implantation then around 80% of the business are then pre-implantation then. Let's see, what was your question regarding that side?
Yeah. Maybe I can add on here. I mean, if you look at then for the full year, the growth, the sales growth for the full year was 27%. If you then exclude the COVID-19 related business, so basically the core business for Igenomix, the growth was 37% on a full year number up to EUR 110 million.
Okay. Just to clarify, the revenues you report here today does not include any COVID-19 related sales?
Oh, yes, it does. I mean, the numbers here are full numbers for full year, you know, looking back on note four within the quarter report and also, you know, for the December then. Those are around 10%.
Okay.
Yeah.
Yeah. Okay. If we move on then, perhaps if we look at the U.S. market, which I also think is doing quite well. To me, just when I'm looking at the numbers, it seems like you should be growing quite a bit faster than sort of the IVF procedure volume. Maybe you can just give some more color on what you're doing right in the U.S. and also if you're taking market shares.
I think we should be humble there. I do think that the business goes very, very well. It's difficult to say exactly if we are talking just about the U.S. market, what the growth rate are there currently. I think it is somewhere between 10%-15%. I think we're doing quite well. If we are then including also the rest of Americas, you know, as I said before, you know, the Igenomix business, the Genetic Services are also strong in Southern America. U.S., good growth, for sure. They are picking up on the time-lapse side, the technology side. It is slowly taking, you know, more and more sales there. It is not yet impacting so much, but still impacting. Consumables side, yes, the overall growth there is coming from the media mainly.
Okay, if we move on to the technology and the time-lapse, would you say that 2021 as a whole was a sort of a strong year or a more like a normal year? Do you expect to grow from this level in 2022?
I think it was a good year. You know, we were selling, I think, technology full year for SEK 474 million or something like that. I feel very confident. I'm not changing my views regarding the technology. What's good with technology is that, you know, we have been working with that for the morphology side and to support it. New customer segments, not customer segments, but new reasons for looking into it, and that's partly from the U.S., is the workflow, that it helps them to reduce the labor or be more effective. I'm still very positive regarding the technology.
Okay. Just a last question on the gross margin. Can you maybe quantify the impact of temporary costs in this quarter, looking at freight costs, for example? Sort of for the next year or next quarter when we have full impact of Igenomix, how much lower will the gross margins be because of that?
Okay. Patrick, should you or I take it?
Well, you can start.
Okay.
Mm-hmm.
Yeah. We have impact this quarter and mentioned then this quarter on gross margin for Igenomix in the neighborhood of 2%-3% on gross margin. We had an impact on some scrap, of course, but it also an impact on some freight issues. Going forward, yes, the gross margin will go down. You know, we can't compare to 2020 Q4 because, you know, that was a situation where we didn't have the right resources. The thoughts right now and what we are working on is, of course, a lower gross margin. How that will impact the total will depend upon the product mix going forward from the Genetic Services.
Because, you know, the Genetic Services are also having, as you said, COVID. We are not calculating with any COVID testing. COVID testing has low margins. If we can continue to work and keep up our ambition, you know, our ambition with the Genetic Services is to focus on growing areas with better profitability, where the support from Genetic Services, especially in the genetic counseling and turnaround time, can give us an increase in gross margin from the current Genetic Services side.
Okay. Just to understand, in a quarter where you have full contribution from Igenomix, is it fair to assume that the gross margin is like 4% or 5% lower if you take that impact?
Yes, around that.
Something like that.
Yeah
Could be reasonable, yes.
Okay. That was all of my questions. Thank you very much.
Thank you.
Thank you. Your next question today comes from the line of Ulrik Trattner. Please go ahead. Your line is now open, Ulrik.
Great. Thank you very much, and good morning both Thomas and Patrik. I have a few. First off, following up on the additional sort of freight costs. Are there any specific products that are more burdensome than others in the quarter? That would be my first question, please.
No, yes. Yes and no, you know. We have not been able to use some of the, let's say, container shipments for consumables that we sometimes do because of the challenge with freight. We have used air freight when it's been possible. The second thing is that all of our equipment more or less has been in a situation where we need quick express flights on, for instance, the media, because, you know, that's more like a product that has limited lifetime. With the current situation where they've been delayed, we are not taking any risks. It is within the consumables mainly.
Okay. That is great. So on to Igenomix, for the 7% ex-COVID is great growth. In your view, is Igenomix taking market share in the sort of pre-implantation testing segment or what are you seeing? Follow up as well as on Igenomix, if you can help us provide sort of full year EBITDA margin on Igenomix as well as I know that ex-COVID, at least from the presentation when you acquired Igenomix, their EBITDA ex-COVID was 27%, and I'm guessing it is substantially lower, including COVID testing. What is sort of a feasible margin going forward for Igenomix? First, are they taking market share? Second one is on the margin side, if I could have some more color on that, please.
Yeah. Let's divide it up then in your two questions. The growth are, as you've seen, very good within the Genetic Services. Are we taking market shares? I do believe we are in some markets, and you know, some markets are also growing from a very small numbers and that is a part of the increase.
The Genetic Services overall has an underlying higher growth rate than of course what the cycle number has. But I'm positive to the positioning. We have done an incredible good job in some of the markets for sure. I wanna be humble regarding the market shares currently because there is not any good official data that we can look into.
Okay. Yeah, no, fair enough.
And then.
Yeah.
Yeah.
If we then go back to the EBITDA question here, what we then can refer to at this stage was obviously what it looked like during the last year, and that number was about 25% on EBITDA margin. That's the number for the full year 2021.
Okay. That's perfect. Next question is more related to Thomas. You mentioned some stronger growth in some areas within consumables. You highlighted vitrification. Just how fast is your vitrification sales growing at the moment? As well as are you seeing some increased volume of this Gx Media that you have introduced recently? Just to.
Uh-
have a better understanding on how
Yeah
Fast, you're growing in this area.
Yeah. Yeah. Antioxidants, yes. We are growing where it is regulatory approved, you know, that we have got it approved in U.S., so starting there. I said that media was growing in U.S. That's one of the reflections on it. You know, it's not yet approved in the biggest market, China. It's not approved within the European community. If you say the MDD, MDR and those. So that's the growth area. Regarding vitrification is growing more than other media business. You know, vitrification is not only media, it is also the equipment that you use for doing the vitrification then. Vitrification, if you combine that with a situation where it is more being frozen market vitrification are growing due to more and more is being frozen.
When you do more Genetic Services, you are doing that with vitrification, of course, then because of the timeframe that it takes to do the genetic analysis, and also a situation where it's starting from a low level, but it is impacting what is sometimes referred as social freezing in territories like U.S., and it's coming also with good numbers in Europe. There are a couple of factors why vitrification is growing. Change in therapy, more genetics, and new segments like social freezing coming up.
Should we assume vitrification sort of underlyingly growing more than double the underlying number of cycles or rough numbers here?
That's a good question how you could view it. Yeah. Yes. That could be a rough number.
Okay. Just a good proxy.
Yeah.
Two more questions, if I may. One again sort of related to Igenomix. Is there any way you could quantify how big their GPDx business is? Do you have any sort of understanding on what you're planning to do with this business? Because I would assume that this is outside of your core business.
Yes. It is outside the core business of fertility to some extent. It is outside what we have done before. You know, as I said, you know, when we announced the signing that it is an area where I didn't have any know-how. After you know being able to work together with Igenomix for a couple of months and also doing an education assessment during the autumn together with the rest of the management and within the Igenomix, we are pushing right now to evaluate the business. It has been I think we said that you know also that it is more expenses put on this side than what has been before. It is a growth area.
It is an area where we are currently investing a lot of money, and if it's going to succeed or not, that's a good question. But I am, I'm right now not, I don't have the mindset right now that we should not continue it, because there are situations right now where we have still similarities. I mean, we have, for instance, we have customer needs. They are requesting GPDx services.
There are another thing, you know, we have the scalability, you know, that the Igenomix, they have capabilities. They have a sequencing capacity. They have logistics. They have customer support. They have clinical know-how with a strong client focus. They are local in many areas. We take away U.S.. This is a growth size. You know that Vitrolife, we have a growth passion. Don't take it out of the picture. We are going to continue the investment, and that will impact, of course, the EBITDA, going forward for a couple of quarters.
I was rather sort of aiming at, I was not thinking that you were to discontinue this operation rather than perhaps spin it off, looking at what others are of genetic operating labs, Agilent, Myriad, et cetera, et cetera. They're having quite handsome multiples out in the market. If there was any thinking on your side on spinning it off in a new entity.
Not right now. To spin it off is then, Ulrik, we should feel then that we would not be able to harvest the possibilities within this market. It's quite a few that has the capabilities that has this decentralized organization. Let's wait and see.
Okay. Fair enough. Great. The last question on my end would be on your thinking on the Cooper & Cook merger. If you regard the merger, if it's sort of finalized, that they will be able to out-compete you on volume, given that they will be a bit larger than Vitrolife going forward when combined.
I think this is, you know, worth thinking what we have been talking about and, you know, we are right now having a quarterly report where Vitrolife has acquired a service business and Cooper is continuing doing acquisitions, is that markets are consolidating. I mentioned also in this report was short in the CEO report regarding the consolidation and changes within the market too. When the market are changing, there are coming up new customer needs, and then the question is, what is that those want to have. Of course, it is products. Of course, it's going to be service. Some of the services they will do themselves. Just a reflection on Cooper & Cook.
This market will look like many other niche markets after some time, that it is going to be divided between few players, and we are getting fewer and fewer. This is a sign of normal change of an unconsolidated market being consolidated and then with different offerings. I don't think it's going to change so much regarding the competitive situation. We are already in a big competition with Cooper, and that's good because that is good for the customer.
I will just squeeze in one last follow-up question. What would be your next move then? What area do you believe will be the next mover within IVF? Obviously now Igenomix, but beyond Igenomix, once it's integrated and you feel comfortable in expanding or looking at acquisitions.
We will try to do what we have done, you know, before, and that is to define where are the value-added products or services that the customers are valuing. You know, looking into the growth perspectives. Just to buy something that has a flat market growth could be done if it is at the right price, but I would like to continue to see and go into areas where our customers are also having a larger growth within those sectors. We mentioned at this meeting certification. You know, we are looking into the changes in workflow. We are looking into the Genetic Services. There are fields that are growing more as a consequence of our customers' growth potential. Those we are looking at.
Yeah. Why don't you merge with Cryotech?
There are many different markets, or companies out there.
Great. Well, thank you once again, and I'll go back to the queue.
Thank you.
Thank you. We do have one more question on the line at the moment. This comes from the line of Patrick Ling. Please go ahead. Your line is now open, Patrick.
Thank you, guys. Maybe I can do some financial questions. First of all, coming back to your discussion about gross margin in the quarter, I actually didn't really get how much, if you can take it in millions SEK, the negative impact in this quarter was from logistics and scrapping and so on. Maybe you can circle back to that one first.
If we then take that on from a number perspective, there are a couple of million SEK. I would say SEK 2 million- SEK 3 million impact for the fourth quarter on scrapping.
And then freight, so.
The freight, yeah. Slightly above that.
Does that include freight cost as well, or is that another SEK 2 million-SEK 3 million?
That's another SEK 2 million-SEK 3 million.
Yeah, you also talked about some product recertification. Did that end up in the gross profit as well, or gross
Yes
Cost of goods?
Yes. Yes, it does. That has been a situation that is quite big. You know, the MDR and all of those extra and where you put it into. I don't know if we have shown those numbers, but I can tell you that those are around SEK 5 million-SEK 7 million extra.
Okay. What you're saying really is that in this quarter you might have between SEK 9 million and SEK 13 million in extra cost that shouldn't really come back, you know, given that the freight market stabilizes?
We don't know.
That should be really on top of the adjusted 60% gross margin that you had if you just adjust for the.
Yeah
Required amortization.
Yeah.
Okay, good.
As you say, you know, also that it is an impact of 2%-3% maybe on the Genetic Services.
Yeah. Yeah.
If we take it then in percentage instead, the freight cost is about 1.5% impact, and then the scrapping and one-off is also about 1.5% impact on the margin.
Genetic Services, 2%-3%.
Yeah, 2%-3%.
Yeah. Okay. Great. Could I ask, I mean, we see that your amortizations comes up, and we have one month of Igenomix included in the numbers. How should we look on quarters going forward, assuming that, you know, currencies stay flat, basically? What number should we pencil in for, say, Q1 on amortization and depreciation?
Yes. The amortization for Igenomix is about SEK 67 million per quarter.
Sorry, one more time.
The total amortization is about SEK 57 million per quarter.
Yeah.
It's divided into certain amount impacts to the gross margin and the other impacts to the financial net.
Given what you had before on, you know, 2021, 2023, we should take that more or less on top of that?
Yes.
Yeah. Okay, good. When it comes to the cost items, I mean, looking at your cost items in Q4, adjusting for the SEK 7 million-SEK 9 million in administration, I mean, R&D moves up quarter-over-quarter by approximately SEK 10 million. I suppose that is a mixture of things, but Igenomix should be one thing. Should we see another SEK 20 million from Igenomix in the first quarter, having it sort of on a full quarterly basis?
Yes, around that.
Mm-hmm. Okay. Can we use the same thinking when it comes to admin cost as well? You know, it's up quarter-over-quarter by some SEK 6 million. It should be added maybe SEK 12 million-SEK 15 million more in the Q1?
Mm.
Having it on a quarterly basis?
Nah.
Is that too much?
Yeah.
It's a little bit tight on that side.
Mm-hmm.
Then finally on sales and distribution, it jumps up approximately SEK 40 million quarter-over-quarter. Is that only impacted or if you could perhaps quantify it a little bit, how much is more activity from the underlying operation? How much is actually adding Igenomix to the mix?
If you look upon it a minute ago here, the percent of the total sales was 17% during the Q4, and last year it was 13% and 13% during 2020. That was exceptionally low on that side. We have increased with 17%. Your question is, okay, what should you put in going forward here as well? Obviously, we have one month of Igenomix into these numbers. Things are becoming a bit more normalized on traveling and so forth into so slightly higher maybe on that side.
Slightly higher than the absolute number, slightly higher than the 17.5?
Slightly higher than on the absolute number.
Yeah.
That's for sure.
That's for sure. Definitely higher than the 13.4 that you had.
Yeah.
last year.
Yeah.
Okay.
Yeah.
Great.
Yeah.
Great. See if I had any more. I think that was most of the questions I had. Thank you, guys.
Thank you.
Thank you.
Thank you, Patrick.
Thank you. It appears there are no further questions at this time. Back to you, Thomas and Patrik.
Okay. If that was the case, then thank you very much for listening in. Sorry that it was a very long meeting, 15 minutes, but it's been a complex situation to understand the new balance sheet and the P&L. Thank you for asking your questions. Bye-bye.
Thank you.
That does conclude our conference call today. Thank you all for participating.
Excuse me.