NEXGEL (NASDAQ:NXGL), the leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, has announced its results for the third quarter to September 30, 2022, which revealed strong revenue growth and an improvement in the gross margin.
Revenue for the period was $568,000, an increase of 69.6% on the corresponding period in 2021, driven by sales growth in branded consumer products, the company said.
In a statement, NEXGEL (NASDAQ:NXGL) chief executive officer Adam Levy said: “We are pleased to report yet another quarter of year-over-year revenue growth.”
The gross profit margin was 26%, which was an improvement both sequentially and year-over-year, he noted.
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“At quarter-end, we had $7.4 million in cash and cash equivalents and marketable securities, which provides us ample runway through 2024 and supports our strategic investments in R&D to drive future growth,” Levy said.
“We expect to grow revenue in 2023 and margins to expand as we continue to scale while realizing the benefits from our fixed facility expense structure.”
Gross profit amounted to $148,000 in the third quarter, compared with a loss of $57,000 in the same period last year. The improvement was primarily due to the higher volume of contract manufacturing sales relative to fixed costs, NEXGEL (NASDAQ:NXGL) said.
The company said it anticipates continued improvement in gross margins due to both increased revenue against fixed facility expenses and larger production runs on commercially proven products.
Contact the author at jon.hopkins@proactiveinvestors.com