INTERIM REPORT OF THE BIOHIT GROUP 1.1.-
BIOHIT OYJ STOCK EXCHANGE RELEASE 7.5.2004 AT 10:00
INTERIM REPORT OF THE BIOHIT GROUP 1.1.-31.3.2004
The net sales of the Biohit group totalled MEUR 6,6 (MEUR 6,4 1-
3/2003). The operating profit before goodwill amortization was MEUR
0,2 (MEUR 0,0). The result of the reporting period totalled MEUR 0,0
(MEUR 0,3 loss). Biohit invested in the evaluations of the diagnostic
products on new market areas and in the international sales of new
liquid handling and diagnostic products.
Net Sales
The net sales of the Biohit group increased by 3%, and were MEUR 6,6
(MEUR 6,4). The net sales were generated primarily by the sales of
liquid handling products and their disposable tips as well as
maintenance services. The net sales grew especially in France and
Japan. The increase in net sales was hindered by the slow growth of
the German market and by the decrease of sales in the U.S. and Russia,
which has been estimated to be temporary.
Result
The operating profit before goodwill amortization was MEUR 0,2 (MEUR
0,0). The operating margin increased by 62% and totalled MEUR 0,6
(MEUR 0,3)
The result for the period totalled MEUR 0,0 (MEUR 0,3 loss). The
income taxes MEUR 0,1 have been accounted for on the basis of the
result for the period. However, deferred tax assets relating to the
taxable losses have not been accounted for.
The group accounting principle for development costs was changed as of
January 1, 2004 to comply with IFRS 38. According to this accounting
principle development costs amounting to TEUR 66 have been capitalized
during the reporting period.
Balance Sheet
The total assets were MEUR 22,3 (MEUR 23,0) and the equity ratio was
63,8 % (63,8 %) at the end of the reporting period.
Liquidity
The cash flow provided by operating activities during the reporting
period was MEUR 0,4 (MEUR -0,2). The liquid assets at the end of the
reporting period totalled MEUR 0,9 (MEUR 1,4).
Investments
The gross investments of the reporting period totalled MEUR 0,5 (MEUR
0,2). The major part of the investments consisted of machinery and
equipment acquired to the Kajaani plant for the automatization of
liquid handling production as well as of injection molding tools used
in the production of liquid handling devices.
Personnel
The average number of personnel totalled 299 during the reporting
period (284) of which 172 were employed by the parent company (159)
and 127 by the subsidiaries (125).
Main Events of the Reporting Period
Liquid Handling
In the area of liquid handling Biohit continued to develop new
pipettor generations. This development work is based on Biohits
liquid handling product strategy in which new market segments have
been identified and created. These segments differ from each other in
terms of the area of application, performance and price. Biohit will
launch new liquid handling products during the second quarter of 2004.
In its development of liquid handling products Biohit has paid special
attention to the safety and ergonomic aspects of pipettors, which
contribute, e.g., to reducing the risk of work-related upper limb
disorders.
During the reporting period Biohit concluded a private label -
agreement with Fisher Scientific U.K., Ltd. for the deliveries of
electronic pipetting controllers, which are intended for large
volumes. The said company belongs to the Fisher Scientific
International Group, which is one of the leading sales and
distribution organizations of laboratory equipment in the world.
Previously Biohit has concluded agreements with the Fisher Group for
the sales of all Biohits liquid handling products in North and South
America, and in Asia.
In the area of liquid handling Biohit Oyj was awarded the Russian
patent 2225758 during the reporting period.
Diagnostics
Biohit continued the evaluations of the GastroPanel during the
reporting period. By the end of the reporting period twenty clinical
evaluations related with the GastroPanel had been completed. Fifteen
had been conducted in Europe, three in Asia and two in North America.
The number of patients studied in the evaluations totalled approx.
3.900. The results of the said evaluations have partially been
published in international scientific articles and abstracts.
At the end of the reporting period altogether twenty-seven evaluations
were in progress of which sixteen in Europe, five in Asia, two in
North America, one in South America, two in Africa, and one in the
Near East. The number of patients to be studied in these on-going
evaluations totals approx. 32.000.
On the basis of the results of the evaluations Biohit continued to
develop further the GastroSoft program, which interprets the results
of the GastroPanel. GastroSoft provides a diagnosis of H. pylori
infection and assesses the probability of atrophic gastritis located
in the antrum, corpus or both. The program further enables to
determine the risk for gastric cancer and peptic ulcer if the patient
suffers from atrophic gastritis. On the basis of the results provided
by the GastroPanel the program presents recommendations for the
measurement of the levels of vitamin B12 and homocysteine, for
gastroscopy and the examination of biopsy samples as well as the
eradication of Helicobacter pylori. Moreover, the program provides an
indication of possible reflux disease and Barretts esophagus, which
may lead to esophageal cancer.
During the reporting period Biohit concluded a co-operation agreement
with Biofons Oy. On the basis of the agreement both companies
complement their product ranges with products manufactured by the
other company. Biohit and Biofons will market their overall product
ranges under their own name through their international distribution
channels.
Biohit further concluded an agreement with the Iraq Ministry of Health
concerning the deliveries of the GastroPanel and tests for the
determination of celiac disease.
During the first quarter Biohit launched the quick tests for the
diagnosis of Helicobacter pylori infection and lactose intolerance.
The preliminary market feedback can be considered promising; approx.
17% of the adult population in Finland, and in some countries even as
many as 90%, suffers from lactose intolerance, i.e., the deficiency or
lack of the lactase enzyme in the small intestine. Moreover, thus far
a fast and reliable method for the detection of lactose intolerance
has not been available.
During the reporting period Biohit continued the preparation of new
distribution agreements for the GastroPanel test kits. Biohit has
focused especially on concluding new distribution agreements in South
America, the Near East, India and China. These are countries in which
as many as 70-90% of the population may suffer from H. pylori
infection. Nearly 50% of the said patients may suffer from atrophic
gastritis, which increases the risk of other severe diseases.
In the business area of diagnostics Biohit was awarded the following
patents during the reporting period: U.S. patent 6,696,262 and Russian
patent 2224258 related with the GastroPanel as well as Chinese patent
ZL00806948.4 and Russian patent 2223502 for the lactose intolerance
test.
Equity Turnover and Price Development
The turnover of Biohits B-shares on the NM-list of the Helsinki
Exchanges was during the reporting period EUR 879.398, and the number
of shares traded 308.253. The highest price was EUR 3,09 and the
lowest EUR 2,43. The average price was EUR 2,85. The market
capitalization value totalled EUR 25.827.062.
Decisions of the Annual General Meeting
The Annual General Meeting (AGM) of Biohit decided on April 15, 2004,
in accordance with the proposal by the Board of Directors that no
dividends be paid for the financial year 2003 and the loss of EUR
2.584.083.19 for 1.1. 31.12.2003 will be transferred to the retained
profit and loss account. It was further decided that the accumulated
losses of Biohit Oyj will be covered by transferring EUR 2.316.099,70
from the share premium fund to the retained profit and loss account.
Furthermore, the AGM decided that the number of the members of the
Board of Directors is six. The AGM appointed docent Arto Alanko, prof.
Reijo Luostarinen, prof. Hannu Seristö, prof. Osmo Suovaniemi, Peter
Tchernych, M.Sc.(Econ.), LL.M, and academy prof. Mårten Wikström as
members of the Board. Professor Reijo Luostarinen acts as the Chairman
of the Board.
The AGM appointed authorized public accountant PricewaterhouseCoopers
Oy as the auditor.
Prospects in 2004
In 2003 Biohit launched new liquid handling products, which have
received a positive feedback from the customer base. Biohit estimates
that this will have a positive impact on the development of net sales
in 2004.
In the business area of diagnostics Biohit aims to conclude new
distribution agreements and complete a significant number of country
evaluations in 2004. Especially the length required for the market
penetration of the diagnostic products will have an effect on the
growth of net sales.
During 2004 Biohit will cut costs and enhance the efficiency of its
activities in order to secure a positive cash flow. The cutting of
costs will cover also those related with personnel. Biohit will begin
the related industrial co-operation procedure in May 2004.
Group Income Statement
1-3 1-3 1-12
2004 2003 Change Change 2003
MEUR MEUR MEUR % MEUR
Net sales 6,6 6,4 0,2 3 26,3
Operating expenses -6,0 -6,1 0,1 1 -24,5
Ebitda 0,6 0,3 0,3 62 1,8
Depreciation without
goodwill amortization -0,4 -0,4 0,0 -4 -1,6
Operating profit before
goodwill amortization 0,2 0,0 0,1 544 0,2
Goodwill amortization -0,1 -0,1 0,0 -32 -0,4
Operating profit / loss 0,1 -0,1 0,2 183 -0,2
Financial expenses (net) 0,0 -0,1 0,1 90 -0,2
Profit/ loss before
extraordinary items 0,1 -0,2 0,3 149 -0,5
Extraordinary income 0,0 0,0 -- -- 0,0
Extraordinary costs 0,0 0,0 -- -- 0,0
Profit / loss before taxes 0,1 -0,2 0,3 149 -0,5
Profit / loss for the period 0,0 -0,3 0,3 115 -0,7
Net Sales and Operating Profit before Goodwill Amortization by
Quarters
2004 2003 2002
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net Sales 6,6 7,5 6,1 6,3 6,4 6,5 6,1 6,3 6,5
Operating profit
before goodwill
amortization 0,2 0,1 0,2 -0,1 0,0 -0,4 0,0 0,1 -0,3
Profit / loss for
the period 0,0 -0,1 -0,1 -0,2 -0,3 -0,7 -0,1 -0,4 -0,6
Group Balance Sheet
31.3.2004 31.3.2003 31.12.2003
Assets MEUR % MEUR % MEUR %
Non-current assets
Intangible assets 3,6 17 4,1 18 3,7 17
Tangible assets 6,2 28 6,2 27 6,2 28
Financial assets 0,0 0 0,1 0 0,0 0
Current assets
Inventories 4,3 19 3,6 16 4,1 19
Receivables 6,1 27 6,3 27 5,7 26
Deferred tax
assets 1,1 5 1,3 6 1,1 5
Cash and cash
equivalents 0,9 4 1,4 6 1,1 5
Total assets 22,3 100 23,0 100 21,9 100
Liabilities and
shareholders
equity
Shareholders equity
Share capital 2,2 10 2,2 10 2,2 10
Share premium 15,4 69 15,4 67 15,4 70
Accumulated losses -3,5 -16 -3,1 -13 -3,6 -16
Capital loans 1,2 6 1,2 5 1,2 6
Minority interest 0,1 0 0,1 0 0,1 0
Long term
liabilities 2,1 10 3,0 13 2,3 11
Short-term
liabilities 4,8 21 4,2 18 4,3 19
Total liabilities 22,3 100 23,0 100 21,9 100
and shareholders
equity
Cash Flow Statement
1-3/2004 1-3/2003 1-12/2003
MEUR MEUR MEUR
Cash flow from operating
activities:
Profit / loss before 0,1 -0,2 -0,4
extraordinary items
Adjustments 0,4 0,6 2,2
Change in net working -0,1 -0,4 -0,6
capital
Interest and other -0,1 -0,1 -0,4
financial items paid
Interests received 0,1 0,0 0,2
Income taxes paid 0,0 -0,1 -0,1
Net cash flow from 0,4 -0,2 0,9
operating activities
Net cash flow from
investing activities:
Investments in tangible and -0,3 -0,2 -1,1
intangible assets
Grants received 0,0 0,0 0,0
Proceeds from the sales of 0,0 0,0 0,1
other investments
Net cash flow from -0,3 -0,2 -1,0
investing activities
Net cash flow from
financing activities:
Proceeds from share issue 0,0 0,0 0,0
Increase in long term loans 0,0 0,6 0,6
Repayments of long term -0,3 -0,1 -0,8
loans
Net cash flow from -0,3 0,5 -0,2
financing activities
Net increase (+) / decrease -0,2 0,0 -0,3
(-) in cash and cash
equivalents
Cash and cash equivalents 1,1 1,4 1,4
at the beginning of the
period
Cash and cash equivalents 0,9 1,4 1,1
at the end of the period
1-3/04 1-3/03 Change Change-% 1-12/03
Investments, gross
fixed assets MEUR 0,3 0,2 0,1 44 1,2
% net sales 4,7 3,4 4,5
Employees average 299 284 15 5 298
Mortgages and shares pledged for liabilities
31.3.2004 31.3.2003 31.12.2003
MEUR MEUR MEUR
Loans from financial 1,8 2,6 2,0
institutions 3,4 3,4 3,4
Corporate mortgages
Pledges on leaseholds 1,5 1,5 1,5
Other long-term liabilities 0,7 0,8 0,8
Mortgages 0,8 0,8 0,8
Leasing commitments 2,9 3,8 2,8
31.3.2004 31.3.2003 31.12.2003
Ratios
Equity ratio, % 63,8 63,8 64,7
Earnings per share, EUR 0,00 -0,02 -0,06
Shareholders equity per 1,09 1,12 1,08
share, EUR
Average number of shares 12.937.627 12.937.627 12.937.627
Number of shares at the end
of the period 12.937.627 12.937.627 12.937.627
Interest on Capital Loans
The unrecorded interest accrued on capital loans totalled MEUR 0,6 on
March 31, 2004 and MEUR 0,5 on March 31, 2003.
Derivative Contracts
The Group does not have any off balance sheet financial instruments.
The figures of the Interim Report are unaudited.
Helsinki, May 7, 2004
Board of Directors of Biohit Oyj
Biohit Oyj
Helena Hentola
Corporate Communications
Additional information: Osmo Suovaniemi, Professor, President & CEO,
tel: +358-9-773 861, direct: +358-9-773 86
250, mobile: +358-40 745 5605,
osmo.suovaniemi@biohit.com.
http://www.biohit.com
Distribution: Helsinki Exchanges
Financial Supervisory Authority
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