LSL Pharma Group Reports Its Fourth Quarter and Year-End 2023 Results and Highlights

• FY-2023 Revenues increased by 22% at $10.0 million compared to $8.2 million for FY-2022, a $1.8 million increase.
• Gross margins for FY-2023 up $3.8 million compared to FY-2022
• Net loss for FY-2023 of $8.5 million compared to $8.1 million for FY-2022
• Q4-2023 Revenues of $3.5 million, up 51% over Q4-2022 revenues of $2.3 million
• Q4-2023 EBITDA profit of $0.3 million compared to an EBITDA loss of $2.2 million for Q4-2022
• Q4-2023 Net loss of $0.5 million compared to a net loss of $3 million for Q4-2022
• In excess of $20 million of gross financings completed during and after fiscal year 2023, including $3.8 million of debt conversions.

BOUCHERVILLE, Québec, April 30, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the “Corporation” or “LSL Pharma”), a Canadian integrated pharmaceutical company, today reported its financial results for the year-ended December 31, 2023.

“During the year, LSL Pharma has completed an important corporate milestone by listing its shares on the TSX Venture Exchange. This event represents a key catalyst that enables our Company to access the required capital to accomplish its growth objectives. During the year, we have successfully completed the relocation of our LSL Laboratory operations thus providing 300% increased capacity for the site. During the same period, we successfully completed the Health Canada certification and improvement of our Steri-Med plant, with production capacity now reaching historical highs. Both sites are well positioned to achieve record levels in 2024, as we continue to add production equipment to take advantage of market demand for our products and services,” commented Francois Roberge, President and Chief Executive Officer.

Commenting on the 2023 results, Luc Mainville, Executive Vice-President and Chief Financial Officer, said, “During the year, we completed a series of financial transactions aimed at positioning LSL Pharma for growth over the coming years. By raising in excess of $20 million and eliminating $3.8 million of debts and liabilities, we are taking proactive measures to strengthen our balance sheet and improve our financial performance.”

2023 Fiscal year Financial Results

• Revenues have increased by 22% at $10.0 million in FY-2023 compared to $8.2 million for FY-2022. As mentioned before, revenues have been positively impacted by the sales of Erythromycin ophthalmic ointment in the US market as we took advantage of a product shortage and successfully secured (via our US partner – Fera Pharmaceuticals) a temporary license granted by the FDA to sell our Canadian labelled product to US hospitals. The license has since been extended to June 30, 2024 and consequently our revenues for the first part of FY-2024 will also be positively impacted by these non-recurrent sales.
• Gross margins for FY-2023 have increased by $3.8 million compared to FY-2022 at $1.6 million compared to negative margins of $2.2 million. While our margins have improved significantly between the two fiscal years, our LSL plant has only reached its normal operating level at the end of FY-2023. We expect LSL Laboratory to better contribute to the overall results in FY-2024. Similar to our revenues, our gross margins have been positively impacted in the later part of the year with sales of our Erythromycin product into the US.
• Adjusted Gross margins % for FY-2023 after eliminating the impact of depreciation, amortization, costs related to shut-down, plant upgrades and moving costs stood at 12%, down from 41% for FY-2022. Our adjusted gross margins for FY-2022 had been favorably impacted by a large adjustment for plant shut-down and relocation costs of $4.5 million compared to a nominal impact of $0.1 million in FY-2023.
• EBITDA for FY-2023, after eliminating the impact of financial expenses, depreciation and amortization was a loss of $5.5 million for FY-2023 compared to a loss of $6.1 million for the prior fiscal year, a 10% improvement.
• Adjusted EBITDA for FY-2023 was a $0.5 million loss compared to a gain of $1.5 million for FY-22. Again, the FY-2022 were favorably impacted by the $4.5 million adjustment for plant shut-down and relocation costs compared to a nominal impact of $0.1 million in FY-2023.
• Adjusted EBITDA before taking into consideration the impact of plant shut-down and relocation show a $0.6 million loss for FY-2023 compared to $3 million loss in FY-2022, a $2.4 million improvement.
• Net loss for the 2023 fiscal year of $8.5 million compared to a loss of $8.1 million for FY-2022.

Q4-2023 Financial highlights