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Interim report  January-September 2016

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Third quarter

  • Net sales amounted to 167.0 MSEK (149.7), an increase by 11.6 percent compared to the corresponding quarter last year. At comparable exchange rates sales increased by 9.5 percent.
  • Operating profit increased by 44 percent to 27.2 MSEK (19.0).
  • Result after tax increased by 52 percent to 27.7 MSEK (18.3).
  • Earnings per share amounted to 0.43 SEK (0.28).
  • The cash flow from operating activities amounted to 30.8 MSEK (33.9).
  • Net cash at September 30 amounted to 101.3 MSEK (134.9), compared to 99.6 MSEK at June 30.
  • Biotage has invested 19.3 MSEK in the development of products for purification of biomolecules through subscription for shares in Chreto Aps.
  • At the end of the reported period Biotage had no holding of own shares. No shares were acquired under the repurchasing program resolved at the 2016 Annual General Meeting.

Nine months, January - September

  • Net sales amounted to 488.8 MSEK (442.0), an increase by 10.6 percent compared to the corresponding period last year. At comparable exchange rates net sales increased by 10.3 percent.
  • Operating profit increased by 37 percent to 75.0 MSEK (54.6).
  • Result after tax increased by 43 percent to 75.3 MSEK (52.5).
  • Earnings per share amounted to 1.16 SEK (0.81).
  • The cash flow from operating activities amounted to 96.7 MSEK (86.8).
  • Dividends to the shareholders were paid to the amount of 80.9 MSEK (48.5) in the month of May.

Comments by CEO Torben Jörgensen

The third quarter is often the most challenging one for Biotage, with a not insignificant impact of the vacation periods, above all in Europe. Despite this the strong development trend from the year’s first six months continues. We increase our sales and we also improve our operating margin (EBIT).

Sales increased by 11.6 percent in the quarter compared to the corresponding period last year, a 9.5 percent increase at comparable exchange rates. On a rolling twelve month basis our sales increase by 14.4 percent, which means that we are gaining market share. Sales are growing in practically all our regions. The US and China remain the regions with the highest growth rate. When it comes to indirect sales we are now beginning to see some positive effects of our efforts. Direct sales in South Korea will start in the fourth quarter. We also see improvements in the distributor sales in the APAC area. The work with establishing a stronger presence in India continues.

The operating margin for the third quarter improved by a little more than 28 percent from 12.7 to 16.3 percent. Efficiency gains in production and positive currency effects result in an improved gross margin. With a gross margin of 57.6 percent for the quarter we are still a bit short of our strategic goal of 60 percent. In order to achieve this, a larger share of consumables in the product mix is required.

Sales of the new generation of the evaporation system Biotage®V-10 Touch are developing well, and so are the sales of our purification system Isolera™, not least in China. The good system sales are balanced by a healthy global sales increase in aftermarket products (consumables and service) in Analytical chemistry. The relation between the sales of systems and aftermarket products remains unchanged compared to the last quarter, however, 45 and 55 percent respectively, compared to our goal of 40/60.

We are running a number of product development projects at a high pace and we are planning for a number of new product launches already in the first part of 2017. Long term we also aim to broaden our product offering for biomolecules, here the investment made in Chreto Aps during the quarter is a part of our initiative.
 
 
For further information, please contact:
Torben Jörgensen, President and CEO, phone: +46 707 49 05 84
Erika Söderberg Johnson, CFO, phone: +46 707 20 48 20


This information is information that Biotage AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.30 CET on November 10, 2016.

About Biotage
Biotage offers efficient separation technologies from analysis to industrial scale and high quality solutions for analytical chemistry from research to commercial analysis laboratories. Biotage’s products are used by government authorities, academic institutions, pharmaceutical and food companies, among others. The company is headquartered in Uppsala and has offices in the US, UK, China, Japan and South Korea. Biotage has approx. 300 employees and had sales of 611 MSEK in 2015. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website: www.biotage.com

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