Interim report January - June 2016
- Net sales amounted to 162.9 MSEK (148.1), an increase by 10.0 percent compared to the corresponding quarter last year. At comparable exchange rates sales increased by 11.1 percent.
- Operating profit increased by 37 percent to 24.2 MSEK (17.7).
- Result after tax increased by 58 percent to 24.7 MSEK (15.7).
- Earnings per share amounted to 0.38 SEK (0.24).
- The cash flow from operating activities amounted to 29.1 MSEK (29.0).
- Dividends to the shareholders were paid to the amount of 80.9 MSEK (48.5).
- Net cash at June 30 amounted to 99.6 MSEK (85.3), compared to 163.5 MSEK at March 31 and 134.9 MSEK at the start of the year.
- 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.
Six months, January – June
- Net sales amounted to 321.7 MSEK (292.3), an increase by 10.1 percent compared to the corresponding period last year. At comparable exchange rates net sales increase by 10.3 percent.
- Operating profit increased by 34 percent to 47.8 MSEK (35.7).
- Result after tax increased by 39 percent to 47.6 MSEK (34.3).
- Earnings per share amounted to 0.74 SEK (0.53).
- The cash flow from operating activities amounted to 65.9 MSEK (52.8).
Comments by CEO Torben Jörgensen
The healthy start of the year is followed by yet another strong quarter with continued organic growth exceeding 10 percent at comparable as well as reported exchange rates. For the quarter the operating margin (EBIT) amounts to 14.9 percent and on a rolling 12 month basis to 13.6 percent. We see continued result improvements as a result of increased sales efforts and efficiency improvements in the production. The cash flow has also continued to develop positively. A weakened GBP and a relatively strong USD have positive currency effects for Biotage. More than half of Biotage’s sales are made in USD, while a large part of the production costs are paid in GBP.
The launch of the next generation evaporation system, Biotage®V-10 Touch, was appreciated by the market, resulting in good sales and pipeline build-up. The system is part of our Purification product area that altogether shows a double digit sales increase. We are seeing an even stronger development for our consumables in Analytical chemistry. Compared to the corresponding quarter last year all our product areas are growing.
Practically all geographical regions had a good second quarter. The US, Japan and China continues to show especially strong results.
It is Biotage’s ambition to cover as many geographical markets as possible through direct sales, where the market is believed to be sufficiently strong. Biotage has now taken the step into South Korea. This is a region that Biotage previously has managed through distributor sales and which is believed to have a good potential for an own establishment. A subsidiary has been formed, an experienced country manager has been recruited and direct sales will be initiated in the last quarter of the year. We are currently also investigating how Biotage should best be organized in order to better profit in the growth market India.
The gross margin for the quarter improved further and now amounts to 57.2 percent, another step in the right direction towards our strategic goal of 60 percent. The relation between the sales of systems and aftermarket products (consumables and service) in the quarter was 45 and 55 percent, respectively. The successes of our systems mean that we still have a bit left to our strategic goal of a 40/60 relation.
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 August 11, 2016.
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