Gemabank’s results for 9 months of 2024 according to RAS

International Medical Center for Processing and Cryopreservation of Biomaterials (IMCB, MOEX: GEMA) has published its performance statement the first 9 months of 2024 in accordance with Russian Accounting Standards (RAS).

IMCB (Gemabank) is a biotech company, part of the Artgen Biotech Group (MOEX: ABIO). It’s activities include custom storage of stem cells and the development of gene therapy drugs for treating blood and immune system disorders.

Over the first 9 months of 2024, its revenue increased by 20.3% and amounted to RUB 256,603 thousand, its net profit increased by 5.7% compared to the same period in 2023. EBITDA was RUB 136,172 thousand (53.1% of revenue).

Key events during the first 9 months of 2024:

Sample storage base has increased to 42,502 samples. In just 9 months of 2024, 33% more samples were accepted for storage than during the same period in 2023.
The potential of the gene therapy approach has been assessed and the design of candidate molecules for drugs to treat hemophilia A and B, HIV has been developed. An in vitro molecule testing plan has been prepared.
3 samples have been issued for transplantation.
Expansion of the cryostorage facility has been completed.
ACRA has upgraded IMCB’s credit rating to BBB-(RU), OUTLOOK - STABLE.
During the 9 months of 2024, dividends were paid for 2023 and for the first 6 months of 2024 in the amount of RUB 107.5 million.
ALOR Broker has published an analytical review of Gemabank with a recommendation to buy and a target share price of RUB 161.9 per ordinary share.

The growing demand for preserving umbilical cord blood samples is positively influenced by examples of practical application of stem cells in the treatment of serious diseases. The company’s development of new gene therapy drugs for treating blood disorders and immunodeficiencies will further diversify its income.

Key profit & loss statement indicators for 9 months of 2024

RUB thous.	January - September 2024	January - September 2023	% change
Revenue	256 603	213 380	20,3%
Cost of sales	(42 026)	(35 961)	16,9%
Commercial expenses	(54 896)	(41 891)	31,0%
Management expenses	-25825	-19587	31,8%
Profit (loss) from sales	133 856	115 941	15,5%
Income from membership in other companies	9 000	6525	37,9%
Interest receivable	14 551	21 101	-31,0%
Interest payable	(25 794)	(25 111)	2,7%
Other income (expenses), net	(16 495)	(9 586)	72,1%
Net profit (loss)	115 118	108 870	5,7%
Net profit, %	44,9%	51,0%	-
EBITDA*	136 172	121 274	24,4%
EBITDA, %	53,1%	56,8%	-

Key balance sheet indicators for 9 months of 2024

RUB thous.	September 30, 2024	December 31, 2023	% change
ASSETS, NON-CURRENT
Intangible assets	80 174	84 776	-5,4%
Fixed assets	68 535	49 118	39,5%
Financial investments	815 880	900 000	-9,3%
Total non-current assets	964 589	1 033 908	-6,7%
CURRENT ASSETS
Inventories	7 982	4 147	92,5%
Accounts receivable	69 678	43 674	59,5%
Financial investments (excluding cash equivalents)	46 000	-	-
Cash and cash equivalents	179 567	196 066	-8,4%
Total current assets	303 227	243 890	24,3%
TOTAL ASSETS	1 267 816	1 277 798	-0,8%

LIABILITIES EQUITY AND RESERVES
Revaluation of non-current assets	151 200	165 000	-8,4%
Additional capital (excluding revaluation)	242 504	242 504	0,0%
Retained earnings (deficit)	40 829	33 206	23,0%
Total equity and reserves	434 690	440 867	-1,4%
LONG-TERM LIABILITIES
Borrowed funds	228 108	228 108	0,0%
Other liabilities	473 746	429 320	10,3%
Total long-term liabilities	701 854	657 428	6,8%
CURRENT LIABILITIES
Borrowed funds	4 886	11 781	-58,5%
Accounts payable	120 818	164 541	-26,6%
Other liabilities	4 872	2 458	98,2%
Total current liabilities	131 272	179 503	-26,9%
TOTAL LIABILITIES	1 267 816	1 277 798	-0,8%