Thank you and hello everyone and welcome to this fourth quarter and preliminary 2025 results presentation. My name is Magnus Tollesau, CEO of the company and with me today I have our CFO Mr. Alexander Karlsson and I will now go through the highlights. The revenue for fourth quarter ended at 111 million Norwegian kroners compared to 114 million in the fourth quarter of 2024. We have had a record high sales volume of 1520 metric tons in the quarter which corresponds to a nine percent increase compared to the fourth quarter of 24. This was offset by somewhat lower global metro mean prices compared to same quarter last year. The 2025 full year revenue ended at 452 million Norwegian Kronos compared to 430 last year and the annual sales volume for 2025 increased by 12% compared to 2024. The EBITDA of the quarter ended at 26 million versus 28 million in Q4 2024. The EBITDA was positively affected by higher sales volume and offset by product mix compared to same quarter last year. We deliver a 2025 two-year all-time high EBITDA of 115 million Norwegian kroners compared to 104 million last year, a 10% increase year over year. The earnings per share for 2025 ended at 1.69 kronus compared to 1.42 kronus last year, an increase of 19%. We have a strong balance sheet with an equity ratio of 75% and a net cash position of 16 million as of year end. The board of directors will propose for the annual general meeting to pay out an ordinary cash dividend of up to 1.5 Norwegian kroners per share to be paid partly with one Norwegian kroner in May and up to 0.5 Norwegian kroners in November. Victim Pharma, we are a pure play metformin company, supporting patients worldwide in a growing market. Diabetes is really one of the largest health emergencies in the 21st century. And metformin is still the gold standard treatment of type 2 diabetes and is used as baseline treatment alone or together with other combination treatments for diabetes type 2. So Vistin Pharma has a growth opportunity, being a leading global producer of premium, high-quality metformin. And according to the Global Diabetes Federation, the global market demand for metformin is expected to continue to grow with approximately 4% to 6% annually. In Vistin today, we have approximately 10% of the market share of the world. and it will continue to be approximately 10% as the new capacity expansion is fully utilized. This is because we are growing in a growing market. For those participants who have joined our quarterly presentations before, you have seen this slide before as well. It shows that about 590 million adults in the world today is living with diabetes and this is expected to increase by 45% within 2050. And if you take the figures, about 10% of the cases are diabetes type 1, which is typically treated with insulin. And then 90% of these cases are type 2 diabetes, which is typically treated with metformin or metformin and combination drugs. I will take us through some key diabetes facts, which speaks to the magnitude of this disease. An estimated around 589 million adults between 20 and 79 million years are living with diabetes. This represents actually 11% of the world's population in this age group. And an estimated 252 million adults are living with diabetes. They are unaware they have the condition. and about 9.3% of the global deaths in the world are coming from diabetes. About 3.4 million people die every year. And interestingly also, an estimated around 635 million adults in the same age group are living with impaired glucose tolerance, which is a pre-state of diabetes where typically also metformin can be used as a treatment. So diabetes is really a global health epidemic. At Vistin we have a worldwide sales footprint. We're having direct sales all the way from Japan in the east to U.S. and LATAM in the west. The majority of sales is typically going to Europe where we sell to reputable pharmaceutical companies and we export globally and our API is used as we know of at least more than 100 countries today. And our API, which is the active ingredient, is then transformed into drug products by our customers and then distributed around the world to patients. In Vistin, we've had a long and successful growth track record. In this graph, you see the revenue development past years. And if you look at 2022, we invested in line. And in 2023, we can see the new volume materializing in two sets. And with that, I would like to hand over to our CFO, Mr. Alexander Karlsson, who will take us through the more details of the financial figures.
Thank you for that, Magnus. As Magnus already touched it on, we had some strong volume growth both in the quarter with 1,520 tons sold compared to 1,400 tons same quarter last year, 120 ton increase in a quarter. And also for the years we increased the sales volume by around 600 tons from 2024 and to 2025. Having a look at the revenue, the revenue quarter landed at 111 million compared to 114 million in Q4 2024, 3% decline. This is driven by the ASP is lower both in the Q4 and the second half 2025 compared to 2024 due to product mix. We also see that the spot price of metformin fluctuates with the global raw material prices so it has some corresponding revenue and purchases in fact. Gross margin is that those are very important measure that come back to when it comes to how we kind of control our pricing. If you look at the production volume compared to the sales volume in 2025 you can see that we have increased our safety stock by around 100 tons and this is to secure high service level to our tier one customers which also pay for this increased safety stock. For the total year our revenue ended at 452 million which is a 5% increase from 430 million in 24. Gross margin in the quarter ended at around 64% and approximately 65% total for 2025, which is well above our long-term addition. And as mentioned in the revenue slide the gross margin is our key measure on how we succeed on pricing as this can be looked as our margin between sales and the raw material costs which do fluctuate during the year. Going more to the earnings and EBTA. EBTA of 26 million in the fourth quarter compared to 28 million in Q4 2024. We had the higher sales form effect as I mentioned offset by the product mix. It's also something I'd like to mention that we booked 800k knock-in cost in the quarter in relating to the weather storm Amy. We emphasized that the storm was much heavier in the south of Norway compared to Oslo and we had some shorter power outages that caused some constraints over a few production days in October. We also had some a couple of batch that needed to be scrapped. That's the background for the close to 1 million cost booked in the quarter. EBITDA margin of around 24%, satisfied with that, and also the net FX effect on the EBITDA versus the same quarter last year is insignificant. A stronger knock compared to US dollar is positive for our raw material purchases, which is mainly in dollars, but we also had quite some dollar sales in the second half, meaning that those two offset each other. The euro was rather stable in the period. Looking at the full year EBTA of record high 150 million, an increase of around 11 million compared to 2024, and we continue to show some very nice EBTA growth. A high 25% EBITDA margin, which is a new all-time high for a full year, continues to represent good commercial execution and back to the gross margin where we kind of how we measure our sales prices compared to raw material prices. And similar for the Q4, the net SX effect on EBITDA is insignificant compared to last year. Moving some more into the details in the P&L, we touched on some of the numbers but looking below the EBDA and depreciations came in at 5.5 million and increased around a million from the same cost last year and that's driven that we have capitalized some more of the beach project for example the recycling water product etc late 2024 that has an effect in 2025. For the full year depreciation a number of 22.5 million compared to 19 million last year. There was a long time effect in the Q3 quarter where we wrote down an asset of 1.4 million. Earnings before interest ended at close to 21 million compared to 23 million last year while full year 22.4 compared to 85.3 in 2024. Looking at the bottom net profit 60 million in the Q4 compared to 19 million last year or in 2024 and emphasize on the full year ended at close to 75 million compared to almost 63 million in 2024. So the 19% increase in earnings is a very important enable for a solid dividend that the board has for post. Quick look at the balance sheet, let's start on the asset side, 236 million in assets compared to 242 last year, and the non-current asset is mainly the building and machine at the plant in Gragrö. Looking at the current assets, somewhat increased inventory as mentioned, while on the receivables there is a significant increase that is mainly driven by the higher volume and sales late in 2025 and also as I mentioned in the previous quarter we see that there are still very volatile and longer payment for a longer sailing times to Asia and most of the Asian customers will not kind of pay until the goods has been received. On the cash side 16 million and the net cash position. That gives us total assets of close to 440 million compared to 385 last year. Looking at the liabilities side, total equity close to 329 million compared to close 310 million in 2024. Strong balance sheet, 75%. Liabilities, no interest-bearing debt as of end December and a net cash position. And we do have credit facilities available if that is needed. So bringing also the equity and liabilities to close to 440 million. I think that was all from me, Magnus and I'll give the word back to you.
Thank you Alexander. I will now take it through a summary. We've had a solid quarter with an EBITDA of 26 million. We had a record high quarterly sales volume of 1520 metric tons plus nine percent compared to same quarter last year. We had a strong two-year sales volume of 5,800 metric tons plus 12 percent increase compared to last year. We deliver an all-time high full year EBITDA of 115 million Norwegian kronos which is 10 percent increase compared to last year where our continued focus on costs and good commercial execution is showing positive effect. The mark The market spot price of metformin fluctuates with the global raw material prices and with corresponding revenue and purchasing effects, as also Alexander mentioned. The global metformin market is expected to continue to grow by 4-6% on an annual basis. The long-term renewable energy supply agreement, which we signed with Startcraft, lasts until 2032 provides us predictable power prices irrespective of market volatility and secures 100 green renewable hydropower long term and also ensures priority on power we have an attractive long-term growth potential as the remaining manufacturing capacity becomes fully available and optimized and this is strategically well positioned as many european clients prefer high quality supplies near shore production and an attractive ESG profile. The board of directors will propose for the annual general meeting to pay out an ordinary cash dividend of up to 1.5 Norwegian kroners per share to be paid partly with one Norwegian kroner in May and up to 0.5 Norwegian kroners in November. And with that I think we're done with the fourth quarter presentation and can open up for questions.
Operator
Thank you. As a reminder to ask a question please press star one one on your telephone and wait for your name to be announced. To read to your question please press star one and one again. Alternatively you may submit your question via the webcast. There are no questions on the phone at this time I would like to hand back over for the webcast questions.
Yes thank you we have some questions coming in here there is a question whether does competition from Asia represent the threat to the business model of this thing is the question. Well to answer that question not really I think methamin is a commodity drug it's a high volume relatively low margin product which is sold globally there are global manufacturers both in Asia and we are in Europe so we are been competing in this market ever since we started we're used to competing in this market and I also think it's fair to say that the pricing segment is also different when it comes to the different quality of the metformin in the market. So, Vistin Pharma, we are positioned as a premium, high-quality supplier, where normally the pricing is a bit higher, and then you have the other side of things, where you have somewhat cheaper metformin with other quality attributes. So, I think the general competition from Asia to our metformin business is stable. It is as it's always been, and we're used to operating in this. And I think it's fair to say we are. The figure shows that we're able to operate in a good and healthy manner, I think, with our business. There's another question here, which is about that within pharma is often described as a pure play metformin producer and how this investment in CF pharma aligns with this long term strategy. I think that's a good question. As we grow the Metformin business, our aim is to get to 7,000 metric tons and optimize the manufacturing and sales of the current Metformin business. As management, as we have communicated before, also at the Capital Market State some years back, that we also have an ambition to look for other business opportunities and grow the business. And we have an ambition also to add more products to the portfolio over time. And that's also why we purchased, let's say, a listening post in CF Pharma in 2024 to give us access to look actively into opportunities to explore other products to the portfolio than only metformin. So I think it aligns well with the long-term strategy and ambition that we have.
Then there's, I'll take the next one, Magnus. There's a question about CapEx. what capex do you expect in 2026? What I can say is that historically the kind of the maintenance capex to keep the building and machine in the current stand is around 10 to 12 million nox per year. In addition we do generally have some productivity projects, for example the recycling of water, which we had in 21-25, that was around the 15 million NOC investment. I believe we are looking at similar projects also in the future, so the capex will vary on what kind of interesting productivity projects we have, but the baseline is around 10 to 12 million NOC per year. Then there's a question about contracts and spot sales long-term setup. Magnus, may you answer that one?
Yeah, there's a question here what is the typical contract length with our customers? Typically we have long-term customers and also portion of the long-term customers with longer contracts typically the contract length for those tier one and tier two customers is rolling so it's just is it continues after five years and for another five years then we have some customers with yearly contracts but of course our aim is to have let's say the majority of contracts are long-term contracts with reputable pharmaceutical companies and That's our business model, to work long-term with a partnership with our customers. The pricing, just to speak about that as well, is typically done once a year for most of the contracts. Some very few customers have a half-yearly adjustment, but the majority is every year. There's another question here about the metformin DC 95% grade. That's a good question. We have been working the last, I would say, one and a half year to develop a new formulation with DC grade 95%, which is, let's say, the grade where the majority of DC sales is in the world today. That formulation is relatively close to being commercially ready. I think during 2026, at least, we will be able to ship samples and test material to potential new customers. And of course, we are working on with existing customer base. And we also work a lot with a very high activity on newly the new customers to also fill the remaining part of the manufacturing capacity to get to the 7000 metric tonne. So BC95 is an interesting new product for us.
Yeah and I think then the next question about utilization and what we will be happy with in 2026. I think as previously we will not kind of guide on volume but I think as always we are working on to continue to ramp our production and produce and sell as much as possible. So that was something we will work on in 2026 there's also a question about or the questionnaire to the questions says that the active markets are not rewarding your strong performance if that continues would you consider initiating a sales process I think that's not something that then that the management can come I think that's more a question for the board okay I think that was all of the questions yeah it looks like we have answered the questions here yeah so I think we can now close the call
