Interim report for the period January – June 2014
Second quarter, April – June 2014
- Group net sales in the second quarter 2014 amounted to 120.4 MSEK (116.3), an increase by 3.5 percent. At comparable exchange rates sales increased by 3.3 percent compared to the corresponding quarter 2013.
- Operating profit for the quarter amounted to 13.5 MSEK (12.1).
- Result after tax for the period amounted to 15.4 MSEK (12.9).
- Earnings per share amounted to 0.24 SEK (0.19).
- The cash flow from operating activities amounted to 24.6 MSEK (7.1).
- Net cash at June 30 amounted to 61.8 MSEK, compared to 87.4 MSEK at March 31.
- Dividends to shareholders were paid to the amount of 38.8 MSEK (34.9).
- No own shares have been acquired under the repurchasing program decided at the 2014 Annual General Meeting. The previous holding of a total of 5,146, 883 own shares acquired under the previous repurchasing program have been cancelled according to the resolution of the 2014 AGM.
Six months, January – June 2014
- Group net sales in the first six months 2014 increased by 6.6 percent to 234.1 MSEK (219.6). Also at comparable exchange rates sales increased by 6.6 percent.
- Operating profit for the six month period amounted to 23.0 MSEK (18.1).
- Result after tax amounted to 23.5 MSEK (16.0).
- Earnings per share amounted to 0.36 SEK (0.23).
- The cash flow from operating activities amounted to 35.4 MSEK (22.3).
- Net cash at June 30 amounted to 61.8 MSEK, compared to 85.0 MSEK at December 31, 2013.
Comments by CEO Torben Jörgensen
After a strong first quarter I am happy to see that Biotage continues to grow organically. The growth in the second quarter was 3.5 percent. Compared to last year, the growth for the six month period amounts to 6.6 percent at comparable exchange rates. Thus we have come closer to the long-term target of 8 percent average annual growth, an improvement largely attributable to our strengthened product portfolio.
Operating profit (EBIT) for the quarter improved by 12 percent to 13.5 MSEK. For the first six months of the year it amounts to 23.3 MSEK, a 27 percent improvement. We practically met our 10 percent EBIT margin target in the six month period and in the quarter we exceeded it by 1.3 percent.
In geographical terms America, China and Japan accounted for the greatest share of the growth during the first six months of the year. Sales in Europe remained largely unchanged. Here we did not manage to follow up the strong first quarter with an equally positive development in the second quarter, among other things due to delays in the sub-supplier chain for our peptide systems. These orders we bring with us into the next quarter. Also Japan had a stronger first quarter than the second one, largely because many customers placed their orders earlier due to the raised VAT coming into effect on April 1.
Our distributor sales have developed slowly in the quarter as well as in the six month period. In order to enable closer collaboration with distributors we are now dividing indirect sales in the rest of the world into EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific), with separate heads responsible for the respective areas.
Our single biggest product area, purification in organic chemistry, continues to develop well. Also the sales of our Sample Prep products in analytical chemistry are growing. Consumables sales in analytical chemistry is a strongly contributing cause to the healthy development in the US. We continue to develop the American and European markets through close collaborations with customers regarding method development for the use of our analytical consumables in pain control and clinical testing, among other things. During the quarter we closed several important supply agreements in this area. We are currently also performing beta tests of our automated sample prep system Extrahera. This system is planned for launch later this year and has the potential to further improve the sales of our consumables in analytical chemistry. In the product area Industrial Resins we have closed yet another agreement with a new customer, aiming at removing an unwanted substance from a food product.
The distribution of sales between systems (43 percent) and consumables and service (57 percent) remained unchanged from the preceding quarter. Our goal is that aftermarket products shall constitute at least 60 percent of the sales, as they generally make a higher contribution to the gross margin. The relatively high share of system sales thus affects the profitability negatively. The stronger British pound also affected the profitability negatively for our production in Cardiff, Wales. The gross margin amounted to 54.4 percent for the quarter and 55.1 percent on a rolling 12 month basis.
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
The information in this press release is of the kind that Biotage AB (publ) is required to make public according to the Financial Instruments Trading Act. The information was released for publication at 08.30 on August 14, 2014.
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 and Japan. Biotage has approx. 290 employees and had sales of 445 MSEK in 2013. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website: www.biotage.com