This really good clarification by @JP199 to my own previous ramblings kept playing on my mind disturbingly.
I have hyped up the company’s great openings (UK, India, South Korea, Chile) and their immense potential here. In my opinion, this “ketchup bottle effect” is still real. However, I now have one tiny reservation about it, at least at the current share price.
According to Inderes, the company is delivering strong results.
“Biohit’s operating profit (EBIT) in H2 was EUR 1.7 million, which grew strongly from the comparison period and exceeded our forecast (EUR 1.3 million). The operating margin was an excellent 21% in H2 and 19% for the full year.”
Except that the money isn’t landing in the company’s account.
“Operational cash flow for the full year remained EUR 0.7 million negative (H2: +0.2 MEUR).”
Quotes here: Biohit H2'25: Vahva tulos – kasvunäkymät aiempaa maltillisemmat - Inderes
According to the Stockanalysis.com website, FCF was 0.2M in H2/2025 and solidly in the red at -1.5M in the first half of the year. So, the free cash flow for 2025 was -1.3 million.
The thing that hit me hardest today is the following:
The company had cash (Cash & Equivalents) of 3.5M on Dec 31, 2025. The amount of cash has remained pretty much the same compared to H2/2024 (3.8M) and H1/2025 (3.9M). A slight decrease, which I’m not worried about.
But.
Short Term Investments have collapsed to zero during that time.
- H2/2024 3M H1/2025 1.3M and H2/2025 0
So the entire cash-equivalent position (Cash & Short Term Investments) has nearly halved (-47.8%) since H2/2024
- H2/2024 6.7M H1/2025 5.2M H2/2025 3.5M
The company only has actual cash left. Antti also noted that:
So we have a company that makes a strong, growing profit on paper.
At the same time, it has burned through its cash-equivalent assets without (at least yet) having to touch the hard cash itself.
Now only that 3.5M in cash remains. How far will it last when even the analyst warns that no money is currently coming into the company, and that those large (and exceptional) licensing revenues from China were practically it?
How big of an operation do you believe can be launched in the UK, India, South Korea, and Chile with 3.5 million?
My guess (which I hope with all my heart proves to be wrong) is that more money will still be needed. Possibly quite soon.
How large a (directed) share issue or, at worst, even a convertible bond (VVK) arrangement would you expect?
At what stage?
And at what price?