Kamada Reports Second Quarter and First Half 2022 Financial Results; Significant Growth Driven by Multiple Catalysts Expected in Second Half of 2022; Reiterates 2022 Revenue and Profitability Guidance

Rhea-AI Summary

Kamada Ltd. (NASDAQ: KMDA) reported second quarter 2022 revenues of $23.6 million, down 3% from $24.2 million year-over-year, while first half revenues rose 5% to $51.7 million. Adjusted EBITDA for H1 2022 was $4.6 million, with a cash flow increase to $29.9 million. The company is optimistic about a stronger second half, reiterating fiscal year revenue guidance of $125-$135 million, reflecting 20%-30% growth. Challenges include a $3.3 million loss due to a labor strike and increased operating expenses. The firm anticipates growth from new IgG products and royalty income from GLASSIA.

Positive

• Revenues increased 5% year-over-year in the first half of 2022 to $51.7 million.
• Anticipated revenue guidance for FY 2022 is between $125-$135 million, indicating 20%-30% growth compared to 2021.
• The new portfolio of FDA-approved IgGs showed strong sales with gross margins over 50%.
• Operating cash flows of $16.4 million in H1 2022 improved the cash position to $29.9 million.

Negative

• Second quarter revenues decreased 3% compared to Q2 2021.
• Net loss of $3.9 million in Q2 2022 compared to net income of $0.9 million in Q2 2021.
• Operating expenses increased to $9.5 million in Q2 2022 from $8.0 million in Q2 2021, driven by higher costs in sales and marketing.

• Second Quarter 2022 Revenues were $23.6 Million; First Half 2022 Revenues of $51.7 Million Increased 5% Year-Over-Year
• First Half 2022 Adjusted EBITDA of $4.6 Million; Excluding Labor Strike Related Loss, Adjusted EBITDA Totaled $8.0 Million, Representing Adjusted EBITDA Margins of 15% of First Half 2022 Revenues
• Generated Operating Cash Flows of $16.4 Million in First Half of 2022, Supporting the Increase of Cash Position to $29.9 Million as of June 30, 2022
• 2022 Year-to-Date Progress is Indicative of the Company's Evolution into a Diversified Fully Integrated Commercial Company with Multiple Growth Drivers
• Significant Revenue and Profitability Growth Expected in Second Half of 2022, Supporting the Reiteration of Fiscal Year 2022 Revenue Guidance of $125 - $135 Million, Representing a 20% to 30% Increase over 2021 and Adjusted EBITDA Margins Anticipated Between 12%-15%, More Than 2.5x Over 2021 Adjusted EBITDA
  

REHOVOT, Israel, and HOBOKEN, N.J., Aug. 17, 2022 (GLOBE NEWSWIRE) -- Kamada Ltd. (NASDAQ: KMDA; TASE: KMDA.TA), a vertically integrated global biopharmaceutical company, focused on specialty plasma-derived therapeutics, today announced financial results for the three and six months ended June 30, 2022.

“We continue to be highly encouraged by the performance of our business in 2022, and believe it is a testament to our ability to rapidly transition from our past dependency on GLASSIA® sales to Takeda to a diversified fully integrated commercial company and a global leader in the plasma-derived specialty market," said Amir London, Kamada’s Chief Executive Officer. “Our recently acquired portfolio of four FDA-approved IgGs, consisting of CYTOGAM®, HEPAGAM B®, VARIZIG® and WINRHO®SDF, continues to gain traction in the U.S. and international markets, and delivered strong sales and gross margins of more than 50% in the first half of the year. We are focused on growing the new portfolio’s revenues through on-going promotional activities in the U.S. and expect these marketing efforts to bear fruit commencing in the second half of 2022. We also anticipate meaningful growth outside the U.S. from these products in the second half of the year, which is expected to include approximately half of the total revenues anticipated from the recently announced $11.4 million international VARIZIG supply agreement.”

“Based on our expectation of significant revenue growth and enhanced profitability in the second half of the year, we are reiterating our full-year 2022 financial guidance, which represents a 20% to 30% increase over 2021 revenue and more than 2.5x over 2021 adjusted EBITDA. Our outlook for a stronger second half of the year is driven by multiple key factors, including anticipated continued growth of the new IgG portfolio, including sales boosted by the new VARIZIG supply agreement, and the expected growth of KEDRAB® sales to Kedrion supporting the product continued increased in-market sales during 2022. In addition, total revenues in the second half of the year will include two full quarters of GLASSIA royalty income, as compared to only four months in the first half of the year. Second half profitability will continue to be driven by the new IgG products and KEDRAB sales, all of which generate more than 50% gross margins, and the GLASSIA royalty, which represents pure profit. Moreover, the now concluded labor strike will have a substantially reduced impact on the second half of the year profitability as compared to the first half,” continued Mr. London.

“Lastly, we continue to forecast growth at a double-digit rate in the foreseeable years beyond 2022, driven by our proprietary product catalysts, our plasma collection operations, GLASSIA's royalties and the planned launch of 11 biosimilar products in Israel. In addition, we continue to advance our inhaled AAT pivotal phase 3 trial with the opening of additional clinical sites and recruitment of patients to the study," concluded Mr. London.

Financial Highlights for the Three Months Ended June 30, 2022

• Total revenues were $23.6 million in the second quarter of 2022, a 3% decrease from the $24.2 million recorded in the second quarter of 2021. Total revenues during the second quarter of 2022 included strong sales from the portfolio of the four FDA-approved commercial products recently acquired, which grew meaningfully year-over-year and as compared to the first quarter of 2022. Total revenues included $3.7 million of sales-based royalty income from Takeda based on GLASSIA sales in the U.S., which was in line with management’s expectations. A portion of the sales derived from products manufactured at the Israel facility were delayed to the second half of the year due to the work stoppage that was settled in mid-July.
• Gross profit and gross margins were $7.2 million and 31%, respectively, in the second quarter of 2022, compared to $9.1 million and 37%, respectively, reported in the second quarter of 2021. Gross profit for the second quarter of 2022 was impacted by a loss of $3.3 million related to the recently concluded labor strike. As the labor strike concluded in July 2022, a subsequent portion of the strike-related loss will be recognized in the third quarter. Cost of goods sold in the Company’s Proprietary segment in the second quarter of 2022 included $1.4 million of depreciation expenses associated with intangible assets generated through the recent acquisition of the portfolio of four FDA-approved commercial products. Gross profit and gross margins, excluding such intangible assets depreciation and the loss related to the labor strike, would have been $11.9 million and 51%, respectively, representing a significant increase year-over-year.
• Operating expenses, including R&D, Sales & Marketing (S&M), G&A and other expenses, totaled $9.5 million in the second quarter of 2022, as compared to $8.0 million in the second quarter of 2021. This increase was attributable to increased S&M costs associated with the recently acquired portfolio of four FDA-approved commercial products distribution and commercial operations. S&M costs for the quarter included $0.4 million of depreciation expenses of intangible assets generated through the recent acquisition.
• Finance expense, net for the second quarter of 2022 included a $1.9 million expense associated with the revaluation of the contingent consideration and other long-term liabilities assumed as part of the recent acquisition of the portfolio of the four FDA-approved commercial products. For more information with respect to such contingent consideration and other long-term liabilities, please refer to Note 5 of the Company’s 2021 financial statements included in the 2021 Annual Report on Form 20-F filed on March 15, 2022, with the Securities and Exchange Commission.
• Net loss was $3.9 million, or $(0.09) per share, in the second quarter of 2022, as compared to net income of $0.9 million, or $0.02 per share, in the second quarter of 2021. Excluding loss associated with the labor strike, depreciation expenses of intangible assets generated through the recent acquisition and finance expense associated with the revaluation of the contingent consideration and other assumed long-term liabilities, the Company would have recorded net income of $3.0 million, or $0.07 per share, in the second quarter of 2022.
• Adjusted EBITDA, as detailed in the tables below, was $1.3 million in the second quarter of 2022, as compared to $2.4 million in the second quarter of 2021. Adjusted EBITDA, excluding loss associated with the labor strike, would have been $4.7 million, representing 20% of revenues.
• Cash provided by operating activities was $10.9 million in the second quarter of 2022, as compared to cash used in operating activities of $3.3 million in the second quarter of 2021.
  

Financial Highlights for the Six Months Ended June 30, 2022

• Total revenues for the first six months of 2022 were $51.7 million, a 5% increase from the $49.1 million generated in the first six months of 2021.
• Gross profit and gross margins for the first six months of 2022 were $18.5 million and 36%, respectively, compared to $18.0 million and 37%, respectively, in the first half of 2021. Gross profit and gross margins in the first six months of 2022, excluding intangible assets depreciation and the loss related to the recently concluded labor strike, would have been $24.6 million and 48%, respectively, representing a significant increase year-over-year.
• Operating expenses, including R&D, S&M, G&A and other expenses, totaled $20.6 million in the first six months of 2022, as compared to $14.6 million in the first half of 2021. This increase was attributable to an increase in S&M costs associated with the recently acquired portfolio distribution and commercial operation, as well as increased R&D costs, primarily due to advancing the pivotal phase 3 InnovAATe trial for Inhaled AAT through the opening of new clinical sites and the manufacturing of clinical supply for the study. S&M costs for the first six months included $0.8 million of depreciation expenses of intangible assets generated through the recent acquisition.
• Finance expense, net for the first six months of 2022 included a $3.9 million expense associated with the revaluation of the contingent consideration and other long-term liabilities, assumed as part of the recent acquisition of the portfolio of the four FDA-approved commercial products.
• Net loss for the first six months of 2022 was $5.8 million, or $(0.13) per share, as compared to net income of $3.6 million, or $0.08 per share, in the prior year period. Excluding loss associated with the labor strike, depreciation expenses of intangible assets generated through the recent acquisition and finance expense associated with the revaluation of the contingent consideration and other assumed long-term liabilities, the Company would have recorded net income of $5.0 million, or $0.11 per share, in the first six months of 2022.
• Adjusted EBITDA, as detailed in the tables below, was $4.6 million in the first six months of 2022, as compared to $6.2 million in the first six months of 2021. Adjusted EBITDA, excluding loss associated with the labor strike, would have been $8.0 million, representing a 15% margin, which would have been in line with Kamada’s annual guidance.
• Cash provided by operating activities during the first six months of 2022 was approximately $16.4 million, as compared to cash used in operating activities of $1.2 million during the first six months of 2021.
  

Balance Sheet Highlights
As of June 30, 2022, the Company had cash, cash equivalents, and short-term investments of $29.9 million, as compared to $18.6 million as of December 31, 2021. The increase was due to positive operational cash flows. Kamada’s working capital as of June 30, 2022, comprising of current assets (excluding cash and cash equivalents, and short-term investments) net of current liabilities, totaled $39.0 million.

Fiscal Year 2022 Guidance
Kamada continues to expect to generate fiscal year 2022 total revenues in the range of $125 million to $135 million, which would represent a 20% to 30% growth compared to fiscal year 2021. The Company also anticipates generating adjusted EBITDA during 2022 at a rate of 12% to 15% of total revenues, representing more than 2.5x of the adjusted EBITDA for the year ended December 31, 2021.

Recent Corporate Highlights

• Secured an $11.4 million agreement to supply VARIZIG® to an undisclosed international organization, operating principally in Latin America. The supply of the product is expected to occur from the fourth quarter of 2022 through the first half of 2023.
• Strengthened senior management team through promotions of Shavit Beladev to Vice President responsible for the Company’s Plasma Operations, and Boris Gorelik to Vice President of Business Development and Strategic Programs. These promotions further Kamada’s commitment to becoming a fully integrated global leader in the specialty plasma derived therapeutics market.

Conference Call
Kamada management will host an investment community conference call on Wednesday, August 17, at 8:30am Eastern Time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 1-877-407-0792 (from within the U.S.), 1 809-406-247 (from Israel), or 1 201-689-8263 (International) and entering the conference identification number: 13732049. The call will also be webcast live on the Internet at:
https://viavid.webcasts.com/starthere.jsp?ei=1562507&tp_key=0cee4cf215.

Non-IFRS financial measures
We present EBITDA and adjusted EBITDA because we use this non-IFRS financial measure to assess our operational performance, for financial and operational decision-making, and as a means to evaluate period-to-period comparisons on a consistent basis. Management believes this non-IFRS financial measure are useful to investors because: (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations; and (2) they exclude the impact of certain items that are not directly attributable to our core operating performance and that may obscure trends in the core operating performance of the business. Non-IFRS financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, our IFRS results. We expect to continue reporting non-IFRS financial measures, adjusting for the items described below, and we expect to continue to incur expenses similar to certain of the non-cash, non-IFRS adjustments described below. Accordingly, unless otherwise stated, the exclusion of these and other similar items in the presentation of non-IFRS financial measures should not be construed as an inference that these items are unusual, infrequent or non-recurring. EBITDA and adjusted EBITDA are not recognized terms under IFRS and do not purport to be an alternative to IFRS terms as an indicator of operating performance or any other IFRS measure. Moreover, because not all companies use identical measures and calculations, the presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. EBITDA and adjusted EBITDA are defined as net income (loss), plus income tax expense, plus or minus financial income or expenses, net, plus or minus income or expense in respect of securities measured at fair value, net, plus or minus income or expenses in respect of currency exchange differences and derivatives instruments, net, plus depreciation and amortization expense, plus non-cash share-based compensation expenses and certain other costs.

About Kamada
Kamada Ltd. (the “Company”) is a vertically integrated global biopharmaceutical company, focused on specialty plasma-derived therapeutics, with a diverse portfolio of marketed products, a robust development pipeline and industry-leading manufacturing capabilities. The Company’s strategy is focused on driving profitable growth from our current commercial activities as well as our manufacturing and development expertise in the plasma-derived biopharmaceutical market. The Company’s commercial products portfolio includes its developed and FDA approved products GLASSIA® and KEDRAB® as well as its recently acquired FDA approved plasma-derived hyperimmune products CYTOGAM®, HEPAGAM B®, VARIZIG® and WINRHO®SDF. The Company has additional four plasma-derived products which are registered in markets outside the U.S. The Company distributes its commercial products portfolio directly, and through strategic partners or third-party distributors in more than 30 countries, including the U.S., Canada, Israel, Russia, Brazil, Argentina, India and other countries in Latin America and Asia. The Company has a diverse portfolio of development pipeline products including an inhaled AAT for the treatment of AAT deficiency for which the Company is currently conducting the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial. The Company leverages its expertise and presence in the Israeli pharmaceutical market to distribute in Israel more than 20 products that are manufactured by third parties and have recently added eleven biosimilar products to its Israeli distribution portfolio, which, subject to EMA and the Israeli MOH approvals, are expected to be launched in Israel through 2028. FIMI Opportunity Fund, the leading private equity investor in Israel, is the Company’s lead shareholder, beneficially owning approximately 21% of the outstanding ordinary shares.

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, including statements regarding: 1) expectation for significant revenues and profitability growth in the second half of the 2022 driven by multiple catalysis; 2) expectation to meet full-year 2022 revenue guidance, which would represent a 20% to 30% growth compared to fiscal year 2021, and expected adjusted EBITDA margins to expect to generate fiscal year 2022 total revenues in the range of $125 million to $135 million, which would represent more than 2.5x of the adjusted EBITDA for the year ended December 31, 2021; 3) statements regarding the performance of the Company’s business in 2022 being indicative of the company’s transition from dependency on GLASSIA sales to Takeda, into a diversified fully integrated commercial company and a global leader in the plasma-derived specialty market; 4) statements regarding recently acquired portfolio continuing to gain traction in the U.S. and international markets; 5) expectation that ongoing promotional activities in the U.S. market will bear fruit commencing in the second half of the year; 6) expectations that approximately half of the sales under the recently signed $11.4 million agreement to supply VARIZIG will be generated in the second half of 2022; 7) expectations for significant revenue growth in the second half of 2022 due to multiple key factors including expectation for continued growth of the new IgG portfolio including sales driven by the new VARIZIG supply agreement, anticipated growth of our KEDRAB® sales to Kedrion, GLASSIA royalty income will include two full quarters in second half 2022; 8) expectation for enhanced profitability in the second half of the year driven by the new IgG products and KEDRAB sales, and the GLASSIA royalty; 9) expectation that the now concluded labor strike will have a substantially lower impact on the second half of the year profitability as compared to the first half; 10) continued projected growth at a double-digit rate in the foreseeable years beyond 2022 driven by our proprietary products catalysts, our plasma collection operations, Glassia's royalties and the planned launch of 11 biosimilar products in Israel; 11) continue the advancement of our inhaled AAT pivotal phase 3 trial with the opening of additional clinical sites and recruitment of patients to the study. Forward-looking statements are based on Kamada’s current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, the continued evolvement of the COVID-19 pandemic, its scope, effect and duration, availability of sufficient raw materials required to maintain manufacturing plans, disruption to the supply chain due to COVID-19 pandemic, continuation of inbound and outbound international delivery routes, continued demand for Kamada’s products, financial conditions of the Company’s customer, suppliers and services providers, Kamada’s ability to integrate the new product portfolio into its current product portfolio, Kamada’s ability to grow the revenues of its new product portfolio, and leverage and expand its international distribution network, ability to reap the benefits of the recent acquisition of the plasma collection center, including the ability to open additional U.S. plasma centers, and acquisition of the FDA-approved plasma-derived hyperimmune commercial products, the ability to continue enrollment of the pivotal Phase 3 InnovAATe clinical trial in new locations, unexpected results of clinical studies, Kamada’s ability to manage operating expenses, additional competition in the markets that Kamada competes, regulatory delays, prevailing market conditions and the impact of general economic, industry or political conditions in the U.S., Israel or otherwise, and other risks detailed in Kamada’s filings with the U.S. Securities and Exchange Commission (the “SEC”) including those discussed in its most recent Annual Report on Form 20-F and in any subsequent reports on Form 6-K, each of which is on file or furnished with the SEC and available at the SEC’s website at www.sec.gov. The forward-looking statements made herein speak only as of the date of this announcement and Kamada undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law.

CONTACTS:
Chaime Orlev
Chief Financial Officer
IR@kamada.com

Bob Yedid
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

KAMADA LTD.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
  

		As of June 30,								As of December 31,
		2022				2021				2021
		Unaudited								Audited
		U.S Dollars in thousands
Assets
Current Assets
Cash and cash equivalents		$	29,933			$	68,416			$	18,587
Short-term investments			-				36,137				-
Trade receivables, net			17,738				27,743				35,162
Other accounts  receivables			6,410				2,450				8,872
Inventories			64,520				44,601				67,423
Total Current Assets			118,601				179,347				130,044
Non-Current Assets
Property, plant and equipment, net			25,914				25,665				26,307
Right-of-use assets			2,810				3,453				3,092
Intangible assets, Goodwill and other long-term assets			150,449				3,413				153,663
Contract assets			6,361				4,472				5,561
Total Non-Current Assets			185,534				37,003				188,623
Total Assets		$	304,135			$	216,350			$	318,667
Liabilities
Current Liabilities
Current maturities of bank loans		$	4,449			$	61			$	2,631
Current maturities of lease liabilities			1,010				1,149				1,154
Current maturities of other long term liabilities			20,117				-				17,986
Trade payables			17,954				17,948				25,104
Other accounts payables			6,110				6,989				7,142
Deferred revenues			40				-				40
Total Current Liabilities			49,680				26,147				54,057
Non-Current Liabilities
Bank loans			15,185				5				17,407
Lease liabilities			2,492				3,401				3,160
Contingent consideration			23,121				-				21,995
Other long-term liabilities			41,304				-				43,929
Deferred revenues			15				3,025				15
Employee benefit liabilities, net			764				1,429				1,280
Total Non-Current Liabilities			82,881				7,860				87,786
Shareholder’s Equity
Ordinary shares			11,731				11,716				11,725
Additional paid in capital  net			210,319				209,942				210,204
Capital reserve due to translation to presentation currency			(3,490	)			(3,490	)			(3,490
Capital reserve from hedges			(442	)			58				54
Capital reserve from share-based payments			5,097				4,746				4,643
Capital reserve from employee benefits			271				(320	)			(149
Accumulated deficit			(51,912	)			(40,309	)			(46,163
Total Shareholder’s Equity			171,574				182,343				176,824
Total Liabilities and Shareholder’s Equity		$	304,135			$	216,350			$	318,667

KAMADA LTD.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Six months period ended								Three months period ended								Year ended
		June 30,								June 30,								December 31,
		2022				2021				2022				2021				2021
		Unaudited								Unaudited								Audited
		U.S Dollars In thousands
Revenues from proprietary products		$	41,618			$	40,193			$	18,607			$	19,323			$	75,521
Revenues from distribution			10,065				8,946				4,983				4,916				28,121
Total revenues			51,683				49,139				23,590				24,239				103,642
Cost of revenues from proprietary products			24,705				23,527				12,256				11,059				48,194
Cost of revenues from distribution			8,436				7,609				4,094				4,108				25,120
Total cost of revenues			33,141				31,136				16,350				15,167				73,314
Gross profit			18,542				18,003				7,240				9,072				30,328
Research and development expenses			7,063				5,364				2,643				2,736				11,357
Selling and marketing expenses			6,592				2,547				3,271				1,424				6,278
General and administrative expenses			6,316				6,112				3,311				3,303				12,636
Other expenses			619				570				309				563				753
Operating income (loss)			(2,048	)			3,410				(2,294	)			1,046				(696	)
Financial income			3				209				1				99				295
Income (expense) in respect of securities measured at fair value, net			-				-				-				-				-
Income (expenses) in respect of currency exchange differences and derivatives instruments, net			593				121				424				(145	)			(207	)
Financial Income (expense) in respect of contingent consideration and other long- term liabilities.			(3,875	)			-				(1,865	)			-				(947	)
Financial expenses			(372	)			(116	)			(178	)			(63	)			(330	)
Income before tax on income			(5,699	)			3,624				(3,912	)			937				(1,885	)
Taxes on income			50				-				9				-				345
Net Income (loss)		$	(5,749	)		$	3,624			$	(3,921	)		$	937			$	(2,230	)
Other Comprehensive Income (loss) :
Amounts that will be or that have been reclassified to profit or loss when specific conditions are met
Gain (loss) from securities measured at fair value through other comprehensive income			-				-				-				-				-
Gain (loss) on cash flow hedges			(784	)			(43	)			(676	)			30				185
Net amounts transferred to the statement of profit or loss for cash flow hedges			288				(256	)			222				(2	)			(488	)
Items that will not be reclassified to profit or loss in subsequent periods:
Remeasurement gain (loss) from defined benefit plan			420				-				420				-				171
Tax effect			-				-				-				-
Total comprehensive income (loss)		$	(5,825	)		$	3,325			$	(3,955	)		$	965			$	(2,362	)
Earnings per share attributable to equity holders of the Company:
Basic net earnings per share		$	(0.13	)		$	0.08			$	(0.09	)		$	0.02			$	(0.05	)
Diluted net earnings per share		$	(0.13	)		$	0.08			$	(0.09	)		$	0.02			$	(0.05	)

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Six months period Ended								Three months period Ended								Year Ended
		June, 30								June, 30								December 31,
		2022				2021				2022				2021				2021
		Unaudited																Audited
		U.S Dollars In thousands
Cash Flows from Operating Activities
Net income (loss)		$	(5,749	)		$	3,624			$	(3,921	)		$	937			$	(2,230	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Adjustments to the profit or loss items:
Depreciation and impairment			6,088				2,372				3,061				1,225				5,609
Financial expenses (income), net			3,651				(214	)			1,618				109				1,189
Cost of share-based payment			569				370				376				155				529
Taxes on income			50				-				9				-				345
Loss (gain) from sale of property and equipment			-				-				-				-				-
Change in employee benefit liabilities, net			(96	)			23				(84	)			60				45
			10,262				2,551				4,980				1,549				7,717
Changes in asset and liability items:
Decrease (increase) in trade receivables, net			17,102				(5,646	)			3,610				(7,231	)			(12,861	)
Decrease (increase) in other accounts receivables			2,073				1,629				1,484				1,643				(1,634	)
Decrease (increase) in inventories			2,903				(2,401	)			241				(3,446	)			(2,373	)
Decrease (increase) in deferred expenses			(484	)			(2,362	)			(374	)			(1,209	)			(6,883	)
Increase (decrease) in trade payables			(7,843	)			1,139				5,806				2,623				7,917
Increase (decrease) in other accounts payables			(1,517	)			(799	)			(745	)			1,346				(392	)
Decrease in deferred revenues			-				1,000				-				500				1,815
			12,234				(7,440	)			10,022				(5,774	)			(14,411	)
Cash received (paid) during the period for:
Interest paid			(380	)			(107	)			(186	)			(59	)			(228	)
Interest received			3				217				1				76				375
Taxes paid			(18	)			(23	)			(9	)			(9	)			(42	)
			(395	)			87				(194	)			8				105
Net cash provided by (used in) operating activities		$	16,352			$	(1,178	)		$	10,887			$	(3,280	)		$	(8,819	)

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Six months period Ended								Three months period Ended								Year Ended
		June, 30								June, 30								December 31,
		2022				2021				2022				2021				2021
		Unaudited																Audited
		U.S Dollars In thousands
Cash Flows from Investing Activities
Investment in short term investments, net		$	-			$	2,967			$	-			$	11,967			$	39,083
Purchase of property and equipment and intangible assets			(1,191	)			(1,463	)			(678	)			(1,332	)			(3,730	)
Proceeds from sale of property and equipment			-				-				-				-				-
Business combination			-				(1,404	)			-				-				(96,403	)
Net cash provided by (used in) investing activities			(1,191	)			100				(678	)			10,635				(61,050	)
Cash Flows from Financing Activities
Proceeds from exercise of share base payments			6				10				3				3				19
Receipt of long-term loans			-				-				-				-				20,000
Repayment of lease liabilities			(573	)			(595	)			(278	)			(306	)			(1,221	)
Repayment of long-term loans			(401	)			(206	)			(385	)			(85	)			(205	)
Repayment of other long-term liabilities			(3,243	)			-				(1,743	)			-				-
Net cash provided by (used in) financing activities			(4,211	)			(791	)			(2,403	)			(388	)			18,593
Exchange differences on balances of cash and cash equivalent			396				88				160				13				(334	)
Increase (decrease) in cash and cash equivalents			11,346				(1,781	)			7,966				6,980				(51,610	)
Cash and cash equivalents at the beginning of the period			18,587				70,197				21,967				61,436				70,197
Cash and cash equivalents at the end of the period		$	29,933			$	68,416			$	29,933			$	68,416			$	18,587
Significant non-cash transactions
Right-of-use asset recognized with corresponding lease liability		$	296			$	588			$	121			$	287			$	845
Purchase of property and equipment and Intangible assets		$	775			$	748			$	775			$	722			$	1,001

NON-IFRS MEASURES – ADJUSTED EBITDA

		Six months period ended								Three months period ended								Year ended
		June 30,								June 30,								December 31,
		2022				2021				2022				2021				2021
		In thousands
Net income		$	(5,749	)		$	3,624			$	(3,921	)		$	937			$	(2,230	)
Taxes on income			50				-				9				-				345
Financial expense (income), net			3,651				(214	)			1,618				109				345
Depreciation and amortization expense			6,088				2,372				3,202				1,225				1,189
Non-cash share-based compensation expenses			569				370				414				155				529
Adjusted EBITDA		$	4,639			$	6,152			$	1,322			$	2,426			$	5,442

		Six months period ended								Three months period ended								Year ended
		June 30,								June 30,								December 31,
		2022				2021				2022				2021				2021
		In thousands
Adjusted EBITDA		$	4,639			$	6,152			$	1,322			$	2,426			$	5,442
Labor Strike Related Loss			3,342				-				3,342				-				-
Adjusted EBITDA excluding Labor Strike Related Loss		$	7,981			$	6,152			$	4,664			$	2,426			$	5,442

FAQ

What were Kamada's total revenues for the second quarter of 2022?

Kamada reported total revenues of $23.6 million for the second quarter of 2022.

How did Kamada's revenues perform in the first half of 2022?

Kamada's revenues for the first half of 2022 were $51.7 million, reflecting a 5% increase year-over-year.

What is Kamada's adjusted EBITDA for the first half of 2022?

Kamada's adjusted EBITDA for the first half of 2022 was $4.6 million.

What is the revenue guidance for Kamada for the fiscal year 2022?

Kamada expects to generate total revenues between $125 million and $135 million for the fiscal year 2022.

What impact did the labor strike have on Kamada's financial results?

The labor strike resulted in a $3.3 million loss impacting the gross profit and margins in the second quarter.