Next Science (ASX:NXS) share price higher on earnings mixed bag

The Next Science (ASX:NXS) share price is pushing higher today after the company released its full-year earnings. Here are the details!

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Next Science Ltd (ASX: NXS) shares are pushing higher today on the back of the company delivering its full-year results for the 12 months ending 31 December 2020 this morning. The Next Science share price opened lower this morning at $1.21 but at the time of writing, has jumped 3.25% higher to $1.27.

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Image source: Getty Images

What did the company report?

The Next Science share price is leaping higher this morning after the company released its results covering the 2020 calendar year, thus incorporating the most significant impacts of COVID-19 on its activities. Next Science reported that revenues came in at US$3.44 million, down 15% from 2019's US$4.06 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3% from 2019's loss of US$11.13 million to a loss of US$11.49 million for 2020. Gross profits were US$2.92 million for 2020, down 17% from 2019's US$3.91 million. Gross margins on sales came in at 85% though, down slightly on 2019's 86%. Overall, expenses fell 2% for 2020 to US$14.4 million, down from 2019's US$14.64 million.

As of 31 December 2020, Next Science reported it had US$15.3 million in net cash. That was assisted by the company's recent capital raise.

Next Science told investors that revenue was held back by the COVID-19 pandemic, which resulted in a "shut down of elective surgeries and [the] closure of wound care clinics". This reportedly hit sales of the company's BlastX product especially hard, given sales were down 75% year on year. That was somewhat offset by lower expenses as a result of reduced travel expenditure and a reduction in staff headcount.

Despite this mixed bag of results, the Next Science share price is pushing higher as the company remains bullish on its future. Next Science highlighted that revenue in the quarter ending 31 December saw revenue growth return and sales that were 75% above the same quarter in 2019. The health care company advised investors that this run rate "is expected to continue in 1H 2021".

What is Next Science?

Next Science is an ASX health care company that specialises in antimicrobial balms and solutions. It is currently the only company worldwide that has products approved to treat biofilm-based infections.

Next Science has three available products in the United States market, as well as regulatory approvals in several European countries, the United Kingdom and Australia. It has another product called XPerience that is set for launch in the first half of this year, pending approval from the US Food and Drug Administration (FDA).

Next Science share price snapshot

Over the past 12 months, the Next Science share price has fallen by nearly 34%. The company's shares have increased 27% since their March 2020 low of $1.00. Based on the current Next Science share price, the company has a market capitalisation of around $150 million.

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nexus Energy Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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