Polygiene, the Swedish-based provider of antimicrobial solutions, saw sales jump by 141.4 percent to 42.0 million Swedish kronor (€4.2m-$5.1m) in the first quarter of 2021, boosted by continued demand for its ViralOff antimicrobial treatment during the Covid-19 pandemic and the addition of Addmaster Holdings, a global supplier of antibacterial additives for hard surfaces whose acquisition was completed on Jan. 8. Organic growth, adjusted for currency fluctuations, amounted to 32 percent.
The company’s operating margin widened to 24.6 percent from 1.2 percent. Net profit reached SEK 8.8 million (€869,940-$1.1m) compared with SEK 0.2 million the year-earlier period, and cash flow was positive at SEK 31.0 million (€3.1m-$3.7m), up from SEK 2.2 million in the first quarter of 2020.
Following the acquisition of Addmaster, Polygiene’s CEO, Ulrika Björk, said the first quarter was “largely focused on accelerating the integration planning process and developing a common strategy going forward.” She added that both Polygiene and Addmaster are seeing an influx of newly signed customer agreements.
Most of the 100+ new agreements that the company signed in 2020 were indeed connected with the ViralOff technology, which was launched in April 2020, followed by an upgraded formula with increased washability during the autumn. This helped the company to grow its revenues last year by 22 percent to SEK 83.9 million (€8.3m-$10.1m)
Polygiene traced 58 percent of first-quarter sales to the EMEA region and 20 percent each to the Americas and Asia-Pacific region. Björk said the company is ready to “make a major investment in the vast Chinese market,” where it foresees solid growth in the next five years.