Interim report for Q1 2012/13 (1 October to 31 December 2012)

2/5/2013 2:30 AM EST

Ambu A/S
Quarterly report

Interim report for Q1 2012/13 (1 October to 31 December 2012)

Solid start to the financial year with revenue growth of 15% in Q1. Outlook for
2012/13 is unchanged. 


  -- Revenue for Q1 2012/13 totalled DKK 268.8m against DKK 234.4m in Q1
     2011/12, corresponding to an increase of 15% and organic growth of 8%. In
     local currencies, growth totalled 13%.
  -- The gross margin in Q1 was 52.1% against 56.7% for the prior-year period.
     As expected, the reduced gross margin is explained by the channel and
     customer mix, lower earnings on the acquired electrode business and
     increased distributor sales in connection with a single large EMS project
     order.
  -- The operating profit (EBIT) before special items was DKK 27.7m for Q1
     against DKK 26.5m in the prior-year period. EBIT was positively impacted by
     procceds of DKK 3.5m from the sale of premises in France and the relocation
     of operations to leased premises.
  -- Special items represent expenses of DKK 6.3m and concern transaction costs
     in connection with the conditional acquisition of King Systems.
  -- In Q1, net financials amounted to expenses of DKK 2.9m against income of
     DKK 1.2m in Q1 2011/12. The most important reason for the change in net
     financials is a change in the value of the working capital as a result of
     changed foreign exchange rates of primarily the Chinese CNY and the
     Malaysian MYR.
  -- The profit before tax was DKK 18.5m in Q1 against DKK 27.2m for the
     prior-year period. The reduced profit is explained by transaction costs in
     connection with the acquisition of King Systems and increased net
     financials.
  -- In Q1, free cash flow amounted to a negative DKK 13.1m against a negative
     free cash flow of DKK 28.0m for the same quarter last year.

"Q1 was a satisfactory and eventful quarter for Ambu. I am extremely pleased
that we achieved 15% growth in Q1 and also were able to announce the conclusion
of the conditional agreement with Consort Medical PLC concerning the
acquisition of King Systems Inc. Against this background, Q1 represents a
milestone in Ambu's history," says President & CEO Lars Marcher and continues:
"With 15% growth, of which organic growth accounts for 8%, the new financial
year has got off to a very good start. The outlook is maintained as described
in the Annual Report 2011/12 of growth in the region of 7-8% reported in local
currencies for FY 2012/13, an EBIT margin of 15% and a cash flow in the region
of DKK 100m before the acquisition of King Systems," concludes Lars Marcher.