Hofseth Biocare ASA ( (HOFBF) ) has released its Q3 earnings. Here is a breakdown of the information Hofseth Biocare ASA presented to its investors.
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Hofseth BioCare ASA is a biotechnology company specializing in the development and production of high-value bioactive ingredients derived from fish, primarily serving the human and pet health sectors with innovative nutritional solutions.
In the third quarter of 2025, Hofseth BioCare ASA reported a period of transition and progress despite challenging market conditions. The company achieved record production volumes at its Midsund plant, reflecting successful process improvements and investments. However, revenues were impacted by softer commodity markets and a weaker U.S. dollar, resulting in a decrease to NOK 54.9 million compared to the previous year.
Key financial highlights include a gross margin improvement to 35% from 28%, driven by a strategic shift towards higher-value ingredients. The Human Nutrition B2B segment saw a significant sales increase, with ProGo® receiving the NutraIngredients-USA Award for Healthy Aging. Meanwhile, the Pet Nutrition B2B segment gained traction with the introduction of NT-II™ for joint and bone health. The Consumer Health segment also showed growth with a 30% increase in revenues.
Despite the revenue challenges, Hofseth BioCare maintained strong operational execution and cost control, with an adjusted operational EBITDA of negative NOK 12.9 million, slightly better than the previous year. The company also strengthened its cash position through a successful private placement, supporting ongoing innovation and growth initiatives.
Looking ahead, Hofseth BioCare remains optimistic about converting its scientific credibility and production scale into sustainable profitability. The company anticipates benefits from the normalization of commodity prices and continued expansion into high-margin markets, supported by strong sales momentum and upcoming product launches.