INTERIM REPORT OF THE BIOHIT GROUP 1.1.-
BIOHIT OYJ STOCK EXCHANGE RELEASE 6.8.2003 AT 10:00
INTERIM REPORT OF THE BIOHIT GROUP 1.1.- 30.6.2003
The net sales of the Biohit Group totalled MEUR 12.8 (MEUR 12.8 1-
6/2002). The operating loss before goodwill amortization was MEUR 0.1
(MEUR 0.2). The loss for the period was MEUR 0.5 (MEUR 1.0). Biohit
focused on the development of the international sales of both
diagnostics and new liquid handling products.
Net Sales
The net sales of the Biohit Group totalled MEUR 12.8 (MEUR 12.8). The
net sales were generated primarily by the sales of liquid handling
products, their disposable tips, and maintenance services. The growth
of the net sales was primarily hindered by the strong value of the
euro compared to the U.S. dollar. The launch of diagnostics continued
to be hindered by the numerous on-going evaluations worldwide.
Result
The operating loss before goodwill amortization for the period was
MEUR 0.1 (MEUR 0.2).
The operating loss totalled MEUR 0.3 (MEUR 0.7) and the loss for the
period MEUR 0.5 (MEUR 1.0). The board decision made on the third
quartile of 2002 to prolong the goodwill amortization period related
to Locus Genex Oy from seven to twenty years improves the comparable
operating profit by 0.3 MEUR during the reporting period.
The income taxes (MEUR 0.1) have been accounted for on the basis of
the result for the period. However, the deferred tax assets relating
to the taxable losses have not been accounted for.
Balance Sheet
On 30.6.2003 the shareholders equity totalled MEUR 15.5 (MEUR 16.7).
Total assets on the balance sheet were MEUR 22.8 (MEUR 24.5). The
equity ratio on 30.6.2003 was 63.2% (64.0%).
Liquidity
The liquid assets at the end of the reporting period totalled MEUR 0.9
(MEUR 2.1). The cash flow provided by operating activities during the
reporting period was MEUR 0.1 (MEUR 0.3).
Investments
The gross investments of the reporting period totalled MEUR 0.6 (MEUR
1.1). The major part of the investments consisted of machinery,
equipment and injection molding tools, which improve the overall
efficiency of production.
Personnel
The average number of personnel totalled 294 during the reporting
period (305 during the corresponding period in 2002), of which 168
were employed by the parent company (184 in 2002) and 126 by the
subsidiaries (121 in 2002). The reduction in the number of personnel
in the parent company resulted from procedures related with decreasing
costs. The increase in the number of personnel in the subsidiaries was
due to the strengthening of the international sales function.
Main Events of the Reporting Period
Liquid Handling
In the business area of liquid handling Biohit concluded the following
major agreements.
Biohit concluded an OEM-agreement with the U.S. company Hamilton for
the electronic ePET pipettor range.
During the reporting period Biohit concluded a private label agreement
for the production of electronic pipettors for the U.S. company Tyco
Healthcare Group LP.
Moreover, Biohit concluded an OEM-agreement with the U.S. company
MicroTyping Systems for electronic pipettors. As a result, Biohit has
thus far concluded sales agreements with three companies belonging to
the Johnson & Johnson Group.
During the reporting period Biohit launched new tip boxes and the
Refill System for the tips of liquid handling products. The tip boxes
are available both as presterilized or non-sterilized. The Refill
System is environmentally friendly as the packaging is totally
recyclable.
Biohit continued to develop further the maintenance, calibration and
training services offered by its subsidiaries and distributors. The
calibration laboratories of Biohit S.A (in France) and Biohit Ltd. (in
the United Kingdom) were accredited by COFRAC (Comité francais
d´accreditation) and UKAS (United Kingdom Accreditation Service),
respectively.
Diagnostics
Biohit continued the evaluations of the GastroPanel, i.e., the test
panel for determining Helicobacter pylori -infection and atrophic
gastritis and for screening the risk of gastric cancer and peptic
ulcer from blood samples.
By the end of the reporting period eighteen clinical evaluations
related with the GastroPanel had been completed. Fourteen had been
made in Europe, three in Asia and one in North America. The number of
patients studied in the evaluations totalled 3,408. The results of the
said evaluations have thus far been published internationally in
scientific articles and abstracts.
At the end of the reporting period altogether twenty-four evaluations
were in progress of which fourteen in Europe, four 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 19,424.
By the end of the reporting period agreements had been made to
commence five new evaluations: three in Europe, one in North America
and one in South America.
The results received from the evaluations promote the establishment of
the reliability of the GastroPanel and the screening and diagnosis of
diseases related with the mucosa of the stomach.
During the reporting period Biohit commenced the production of the new
versions of the GastroPanel test kits (Pepsinogen I, Pepsinogen II,
Gastrin-17 and Helicobacter pylori). The second generation of the
GastroPanel test kits have been improved by reducing the standards,
shortening the incubation times and unifying buffers, which all
improve the work and cost efficiency of the test kits.
The GastroPanel was during the reporting period used in numerous
service laboratories both in Finland and abroad, e.g., in Italy,
Germany, Sweden, France, Spain, and Portugal.
During the reporting period Biohit received the possibility for
receiving patient reimbursement from the Social and Insurance
Institution of Finland for the test kits of the GastroPanel
The GastroPanel received official registration in Russia, which
enables to commence the sales of the diagnostic kits on the said
market area.
During the reporting period Biohit continuted 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.
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 422,483 and the number
of shares 292,440. The highest price was EUR 1.77 and the lowest EUR
1.22. The average price was EUR 1.44.
During the reporting period Biohit established a representative office
in Shanghai. The purpose of the representative office is to promote
the sales and marketing of all the product groups of Biohit on the
market area of China.
Prospects for 2003
Biohit estimates that net sales for 2003 will remain at the same level
as in 2002. Biohit expects that the net sales for 2003 will be
generated primarily from the sales of liquid handling products. As the
evaluations and receiving the necessary registrations for diagnostics
have demanded more time than expected earlier, Biohit estimates that
the business area of diagnostics will begin to generate net sales
earliest during year 2004.
However, the uncertainties related with the general economic
development of the major market areas render the drawing up of
forecasts difficult.
In order to improve profitability Biohit will continue the adaptation
program of its activities, which was taken into use in 2002. In
accordance with the program Biohit will, e.g., intensify its marketing
efforts and cut costs.
Group Income Statement
1-6 1-6 1-12
2003 2002 Change Change 2002
MEUR MEUR MEUR % MEUR
Net sales 12.8 12.8 -0.1 -1 25.4
Operating expenses -12.0 -12.3 -0.3 -2 -24.4
Ebitda 0.7 0.5 0.2 35 1.0
Depreciation without
goodwill amortization -0.8 -0.7 0.0 4 -1.5
Operating profit before
goodwill amortization -0.1 -0.2 0.1 67 -0.6
Goodwill amortization -0.2 -0.5 0.3 59 -0.6
Operating profit / loss -0.3 -0.7 0.4 61 -1.2
Financial expenses (net) -0.1 -0.2 -0.1 16 -0.3
Profit/ loss before
extraordinary items -0.4 -0.9 0.5 53 -1.5
Extraordinary income 0.0 0.0 0.0 0 0.0
Extraordinary costs 0.0 0.0 0.0 0 0.0
Profit / loss before taxes -0.4 -0.9 0.5 53 -1.5
Profit / loss for the period -0.5 -1.0 0.3 49 -1.8
30.6.2003 30.6.2002 31.12.2002
Assets MEUR % MEUR % MEUR %
Non-current assets
Intangible assets 3.9 17 4.4 18 4.2 19
Tangible assets 6.4 28 6.7 27 6.4 29
Financial assets 0.1 1 0.2 1 0.2 0
Current assets
Inventories 3.9 17 4.0 16 3.6 16
Receivables 6.3 28 5.6 23 5.3 24
Deferred tax
assets 1.3 5 1.5 6 1.3 6
Cash and cash
equivalents 0.9 4 2.1 9 1.4 6
Total assets 22.8 100 24.5 100 22.4 100
Liabilities and
shareholders
equity
Shareholders equity
Share capital 2.2 10 2.2 9 2.2 10
Share premium 15.4 68 15.3 63 15.4 69
Funds
Accumulated losses -3.4 -15 -2.0 -8 -2.8 -13
Capital loans 1.2 5 1.2 5 1.2 6
Minority interest 0.1 0 0.1 0 0.1 0
Long term
liabilities 2.8 12 2.4 10 2.5 11
Short-term
liabilities 4.5 20 5.3 21 3.8 17
Total liabilities
and shareholders
equity 22.8 100 24.5 100 22.4 100
1-6 1-6 1-12
2003 2002 2002
Cash flow from operating
activities:
Profit / loss before
extraordinary items -0.4 -0.9 -1.5
Adjustments 1.0 1.2 2.4
Change in net working -0.5 0.1 -0.1
capital
Interest and other -0.2 -0.2 -0.2
financial items paid
Interests received 0.1 0.1 0.1
Income taxes paid -0.1 0.0 -1.2
Net cash flow from -0.1 0.3 -0.5
operating activities
Net cash flow from
investing activities:
Investments in tangible and -0.6 -1.3 -1.7
intangible assets
Grants received 0.0 0.1 0.1
Net cash flow from -0.6 -1.2 -1.6
investing activities
Net cash flow from
financing activities:
Proceeds from share issue 0.0 0.5 0.6
Increase in long term loans 0.6 0.4 0.9
Repayments of long term -0.3 -0.5
loans -0.4
Net cash flow from 0.2 0.6 1.0
financing activities
Net increase (+) / decrease -0.5 -0.3 -1.1
(-) in cash and cash
equivalents
Cash and cash equivalents 1.4 2.5 2.5
at the beginning of the
period
Cash and cash equivalents 0.9 2.2 1.4
at the end of the period
1-6/03 1-6/02 Change Change-% 1-12/02
Investments, gross
fixed assets MEUR 0.6 1.2 - 0.6 -50 1,6
% net sales 5.1 8.8 6.2
Employees average 294 305 -11 -4 303
30.6.2003 30.6.2002 31.12.2002
MEUR MEUR MEUR
Mortgages and shares pledged
for liabilities
Loans from financial
institutions 2.4 1.8 2.1
Corporate mortgages 3.4 3.4 3.4
Pledges on leaseholds 1.5 0.0 1.5
Other long-term liabilities 0.8 0.8 0.8
Mortgages 0.8 0.8 0.8
Leasing commitments 3.8 4.0 4.1
30.6.2003 30.6.2002 31.12.2002
Ratios
Equity ratio, % 63.2 64.0 66,9
Earnings per share, EUR -0.04 -0.08 -0,14
Shareholders equity per 1.10 1.20 1,15
share, EUR 12.937.627 12.739.250 12.827.781
Average number of shares
Number of shares at the end 12.937.627 12.875.127 12.937.627
of the period
Interest on Capital Loans
The unrecorded interest accrued on capital loans totalled MEUR 0.5 on
June 30, 2003 and MEUR 0.5 on December 31, 2002.
Derivative contracts
The Group does not have any off balance sheet financial instruments.
The figures of the Interim Report are unaudited.
Helsinki, August 6, 2003
Board of Directors of Biohit Oyj
Overview on Biohit
Biohit develops, manufactures and markets liquid handling products and
accessories as well as diagnostic test systems for use in research,
health care and industrial laboratories.
In the area of liquid handling Biohits main products are electronic
and mechanical pipettors and their disposable tips. Currently,
Biohits range of electronic and mechanical pipettors is the widest in
the world. Biohit is also the global market leader of electronic
pipettors.
In the area of diagnostics Biohit develops, manufactures and markets
test kits based on the enzyme immunoassay (EIA) method and monoclonal
antibodies for the diagnosing and screening of different types of
disease. Biohits diagnostic product range includes, e.g., a test
panel for diagnosing and screening H.pylori infection and atrophic
gastritis as well as for assessing the risk of gastric cancer and
peptic ulcer from blood samples (the GastroPanel), as well as tests
for the detection of lactose intolerance and systemic lupus
erythematosus (SLE).
In order to be able to offer complete analyzing systems for its
customer base, Biohits product range includes, in addition to liquid
handling products and diagnostics, instruments used for the analysis
of test results. Moreover, Biohit offers as a part of its product and
marketing strategy maintenance, calibration and training services
through the Group companies and its distributors.
Biohits production plants are located in Kajaani and Helsinki. The
sales and marketing subsidiaries are located in France, Germany,
Italy, Japan, Russia, the U.K. and the U.S. Moreover, Biohit has a
representative office in China. Biohit exports 97% of its production
and the degree of domestic production in 95%,
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, fax: +358-9-
773 86 205, osmo.suovaniemi@biohit.com.
http://www.biohit.com
Distribution: Helsinki Exchanges
Financial Supervisory Authority
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