Q2 2016: Continued healthy growth and a transforming acquisition
SECOND QUARTER OF 2016
- NET SALES amounted to MSEK 73.3 (59.0).
- OPERATING PROFIT totalled MSEK 20.7 (15.7). Operating profit includes acquisition costs in the amount of 7.5 MSEK
- PROFIT AFTER TAX amounted to MSEK 17.1 (10.8).
- PROFIT AFTER TAX PER SHARE was SEK 1.87 (1.19).
- CHANGES IN CASH AND CASH EQUIVALENTS amounted to MSEK 16.4 (neg: 5.1). Probi paid dividends of MSEK 9.1 (7.7).
- NET SALES amounted to MSEK 160.3 (127.9).
- OPERATING PROFIT totalled MSEK 56.0 (43.0). Operating profit includes acquisition costs in the amount of 7.5 MSEK
- PROFIT AFTER TAX amounted to MSEK 44.0 (33.2).
- PROFIT AFTER TAX PER SHARE was SEK 4.83 (3.64).
- CHANGES IN CASH AND CASH EQUIVALENTS amounted to MSEK 26.4 (13.4). Probi paid dividends of MSEK 9.1 (7.7).
SIGNIFICANT EVENTS DURING THE SECOND QUARTER:
- Probi signed an agreement to acquire Nutraceutix and strongly expand its North American presence
- Resolution on rights issue of approximately MSEK 600 at an Extraordinary General Meeting
- New agreement with Ipsen Pharma for the launch of Probi’s digestive health capsules in 18 markets
- Agreement on launch of Probi FerroSorb® in the first market outside Scandinavia
CEO COMMENTS ON THE OPERATIONS:
I am very pleased that we succeeded in signing an agreement regarding this major and transforming acquisition of Nutraceutix. The companies have highly complementary business models and customers, as well as strong entrepreneurial values. I envisage an excellent combination for continuing the development of Probi by working on merging Probi’s strong R&D expertise with Nutraceutix’s know-how in technologies and manufacturing in the future. This acquisition also creates a strong platform for pursuing growth in the US and in the global market. The approved rights issue will ensure financing of the acquisition at a very healthy financial level.
While much energy has been invested in the acquisition, it is, of course, highly satisfying to note that we succeeded in retaining Probi’s healthy organic sales growth during the quarter, at the same time as we also expanded our operating margin. Net sales for the first six months totalled MSEK 160.3, corresponding to a 25% increase year-on-year. The operating margin of 34.9% (33.6%) for the first half of the year was an improvement compared to the same period previous year. Excluding acquisition costs of MSEK 7.5, the operating margin was 39.6%.
We laid the foundation for stable future performance in new markets and new fields of application with a number of new agreements and product development projects during the period.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Nählstedt, CEO, Probi, tel: +46 (0)46-286 89 23 or +46 (0)723-86 99 83, e-mail: email@example.com
This information is such that Probi AB is required to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 15 July 2016 at 8:45 a.m.
This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
Probi AB is a Swedish publicly traded bioengineering company that develops effective and well-documented probiotics. Through its world-leading research, Probi has created a strong product portfolio in the gastrointestinal health and immune system niches. Probi’s products are available to consumers in more than 30 countries worldwide. Probi’s customers are leading food, health-product and pharmaceutical companies in the Functional Food and Consumer Healthcare segments. Probi had sales of MSEK 216 in 2015. The Probi share is listed on Nasdaq Stockholm, Small Cap. Probi has about 4,000 shareholders. For more information, please visit www.probi.se.