INTERIM REPORT OF THE BIOHIT GROUP 1.1.-31.3.2005
BIOHIT OYJ STOCK EXCHANGE RELEASE 6.5.2005 AT 10:00
INTERIM REPORT OF THE BIOHIT GROUP 1.1.-31.3.2005
The net sales of the Biohit Group totalled EUR 6.3 million in the
first quarter of 2005 (EUR 6.6 million in 1Q/2004). The operating
loss came to EUR -0.6 million (operating profit EUR 0.2 million).
The loss for the reporting period was EUR -0.6 million (profit EUR
0.1 million). Biohit invested in the international sales and
marketing of liquid handling and diagnostic products, and the
evaluations of the diagnostic products.
The interim financial report has been prepared in accordance with
the International Financial Reporting Standards (IFRS). Biohit
Group has adopted IFRS reporting since 1 January 2005. Further
information about the impact of the transition to IFRS is included
in the stock exchange release dated 14 March 2005. The comparative
figures presented in this report are in accordance with the IFRS
figures of 2004 published in the above-mentioned release. The
accounting principles are the same as in the above-mentioned
release.
Net sales
The net sales of the Biohit Group decreased by 4% from the figures
of the corresponding period in 2004 and totalled EUR 6.3 million
(EUR 6.6 million).
The Groups net sales for the fiscal year were generated primarily
from sales and maintenance services related to liquid handling
business. The turnover increased especially in Russia and the US.
The growth in net sales slowed down due to the implementation of
the new enterprise resource planning (ERP) system and related
delivery problems in the liquid handling business during January
and February. During March the turnover increased by 7% as
compared with the corresponding month in 2004. The turnover of the
liquid handling business was EUR 6.0 million (EUR 6.5 million) and
of the diagnostics business was EUR 0.3 million (EUR 0.1 million).
Result
The drop in net sales during the first two months and an increase
in expenditures lead to a weakened result. The operating loss was
EUR -0.6 million (operating profit EUR 0.2 million). The loss of
the period was EUR -0.6 million (profit EUR 0.1 million).
The operating profit of the liquid handling business was EUR 0.0
million (EUR 0.7 million) and the operating loss of the
diagnostics business was EUR -0.7 million (EUR -0.6 million).
In addition to the Groups current tax for the period, the change
in deferred tax liabilities and assets in respect of taxable
temporary differences has been taken into account.
Balance sheet
Total assets were EUR 23.6 million (EUR 23.4 million) and the
equity ratio was 58.1% (62.2%) on 31 March 2005.
Liquidity
The net cash flow provided by operating activities was EUR -0.3
million (EUR 0.4 million). Interest bearing liabilities increased
by EUR 0.3 million (net) in the reporting period. At the end of
the reporting period, the liquid assets of the Group totalled EUR
0.9 million (EUR 0.9 million).
Investments
Gross investments totalled EUR 0.4 million (EUR 0.3 million). The
majority of the investments consisted of machinery and equipment
acquired for the Kajaani plant for the automation of production of
liquid handling products, as well as injection moulding tools used
in the manufacture of liquid handling devices.
Personnel
The average number of personnel in the reporting period was 293
(299), with 157 (172) of the personnel employed by the parent
company and 136 (127) by the subsidiaries.
Main events of the first quarter of 2005
Liquid handling business area
Biohits liquid handling business consists of mechanical (the
mLINE and Proline range) and electronic (the eLINE, Proline, ePET,
rLINE, Midi, and XL range) liquid dispensers as well as disposable
tips. In addition, the company offers services related to
maintenance, calibration, and training concerning liquid handling
devices.
During the reporting period Biohit launched a new linear stand for
its pipettors. The new linear stand saves bench space in the
laboratory and is compatible with all Biohits pipettors as well
as many other manufacturers pipettors.
VWR International Inc. awarded Biohit Inc., Biohits subsidiary
the US, for being a Consumable or Chemicals supplier who best
differentiated VWR International through dedicated marketing
programs for VWRs customers and sales organisation. The award was
given at the VWR International Sales Meeting in January 2005 in
San Diego CA. VWR International is one of the worlds leading
sales and distribution organisations for laboratory equipment.
Diagnostics
In the business area of diagnostics, the focus of Biohit is to
concentrate on the research, development, production, and
marketing of products enabling screening, prevention, and
diagnosis of diseases related to the gastrointestinal tract. The
companys range of diagnostic products includes the blood sample-
based GastroPanel (Pepsinogen-I, Pepsinogen-II, Gastrin-17, and
Helicobacter pylori IgG antibodies tests) for diagnosing the cause
of upper abdominal pain, and the biopsy specimen quick tests for
diagnosis of lactose intolerance and Helicobacter pylori
infection.
During the reporting period, the lactose intolerance and H. pylori
quick tests have been cleared for marketing and distribution in
the Russian market.
Quest Diagnostics Ltd. (UK) has validated and launched the
GastroPanel test kit and offers it in its own laboratories in the
UK. Quest Diagnostics is one of the worlds leading service
laboratories.
At the end of the reporting period, 34 evaluations were in
progress, of which 21 were being conducted in Europe, seven in
Asia, two in North America, two in Africa, one in South America
and one in the Middle East.
Equity Turnover and Price Development
During the period the turnover of Biohits B-shares on the NM-list
of the Helsinki Exchanges was EUR 1,186,021.16 and the number of
shares traded 552,765. The highest price was EUR 2.55 and the
lowest EUR 1.84. The average price was EUR 2.15. The closing price
at the end of the period was EUR 1.93. On 31 March the market
capitalisation value of the B-shares totalled EUR 17,489,905.11.
Decisions of the Annual General Meeting
The Annual General Meeting (AGM) of Biohit held on 21 April 2005,
decided in accordance with the proposal by the Board of Directors
that no dividends will be paid for the financial year 2004 and
that the loss of EUR 266,739.42 will be transferred to the
retained profit and loss account. It was further decided that the
accumulated losses of Biohit will be covered by transferring EUR
266,739.42 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 PhD Arto Alanko,
Professor Reijo Luostarinen, Professor Hannu Seristö, Professor
Osmo Suovaniemi, M.Sc.(Econ.) and LLM Peter Tchernych, and Academy
Professor Mårten Wikström as members of the Board. Reijo
Luostarinen acts as the Chairman of the Board.
The AGM appointed authorized public accountant
PricewaterhouseCoopers Oy as the auditor.
Prospects for 2005
Despite the weakened result during the first two months, Biohit
believes that, in addition to the positive trend that started in
March, intensified sales and marketing, as well as actions aimed
at reducing expenses will improve net sales and earnings of the
year in total.
In the area of liquid handling, Biohit expects to respond more
effectively to the market demand, on account of its more
comprehensive product range. According to Biohit estimates, there
are not expected to be any changes in the liquid handling market
that could have a negative impact on the development of the
companys net sales and result.
In the area of diagnostics, Biohit expects that intensification of
sales, increased co-operation with distributors, several
evaluations, and approvals received from authorities will lead to
improvement in the development of the diagnostics business.
Group income statement
1-3 1-3 1-12
2005 2004 Change Change 2004
MEUR MEUR MEUR % MEUR
Net sales 6,3 6,6 -0,3 -4 26,7
Other operating income 0,0 0,0 0,2
Change in inventories of
finished goods and work in
progress 0,3 0,0 0,3 -1572 -0,5
Raw materials and
consumables -1,3 -1,1 -0,2 23 -4,4
External services -0,2 -0,1 -0,1 55 -0,7
Personnel expenses -2,9 -2,7 -0,2 9 -10,7
Depreciation -0,4 -0,4 0,0 9 -1,5
Other operating expenses -2,4 -2,1 -0,3 12 -8,9
Operating profit / loss -0,6 0,2 -0,8 -463 0,2
Finance costs (net) 0,0 0,0 0,0 -0,2
Profit / loss before tax -0,6 0,2 -0,8 -509 0,0
Direct taxes 0,0 -0,1 0,1 -107 -0,2
Profit / loss for the period -0,6 0,1 -0,7 -805 -0,2
Group net sales by business segment
1-3 1-3
2005 2004 Change Change
MEUR MEUR MEUR %
Liquid handling 6,0 6,5 -0,5 -7
Diagnostics 0,3 0,1 0,2 196
Group operating profit / loss by business segment
1-3 1-3
2005 2004 Change Change
MEUR MEUR MEUR %
Liquid handling 0,0 0,7 -0,7 -99
Diagnostics -0,7 -0,6 -0,1 -12
Group balance sheet
31.3.2005 31.3.2004 31.12.2004
Assets MEUR % MEUR % MEUR %
Non-current assets
Property, plant and
equipment 6,7 28 6,5 28 6,8 30
Goodwill 2,6 11 2,6 11 2,6 12
Other intangible
assets 1,3 6 0,8 4 1,2 5
Deferred income tax
assets 1,9 8 2,2 9 1,9 8
12,5 53 12,1 52 12,6 55
Current assets
Inventories 4,0 17 4,2 18 3,6 16
Trade and other
receivables 6,2 26 6,1 26 5,3 23
Cash and cash
equivalents 0,9 4 0,9 4 1,3 6
11,1 47 11,3 48 10,2 45
Total assets 23,6 100 23,4 100 22,8 100
Equity and
liabilities
Share capital 2,2 9 2,2 10 2,2 10
Share premium fund 13,1 56 15,4 66 13,1 57
Retained earnings -1,7 -7 -3,2 -13 -1,2 -5
Total equity 13,6 58 14,4 63 14,1 62
Long-term
liabilities
Interest-bearing
debt 4,0 17 3,3 14 3,8 17
Deferred income tax
liabilities 0,1 0,1 0,1
Retirement benefit
obligations 0,1 0,2 0,1
Other long-term
liabilities 0,6 3 0,6 3 0,6 3
Total long-term
liabilities 4,8 20 4,2 17 4,6 20
Short-term
liabilities
Trade and other
payables 4,1 17 3,8 16 3,0 14
Short-term interest-
bearing debt 1,1 5 0,9 4 1,0 4
Total short-term
liabilities 5,2 22 4,7 20 4,1 18
Total liabilities 10,0 42 8,9 37 8,6 38
Total equity and
liabilities 23,6 100 23,4 100 22,8 100
Cash flow statement
1-3/2005 1-3/2004 1-12/2004
MEUR MEUR MEUR
Cash flow from operating
activities:
Profit / loss -0,6 0,2 0,2
Adjustments 0,6 0,3 1,3
Change in net working
capital -0,3 -0,1 0,8
Interest and other
financial items paid -0,1 -0,1 -0,2
Interest received 0,1 0,1 0,1
Net cash flow from
operating activities -0,3 0,4 2,2
Cash flow from investment
activities:
Investments in tangible and
intangible assets -0,4 -0,3 -2,1
Investments in subsidiaries 0,0 0,0 -0,1
Net cash flow from
investment activities -0,4 -0,3 -2,2
Cash flow from financing
activities:
Proceeds from borrowings 0,5 0,0 0,8
Repayment of borrowings -0,2 -0,3 -0,6
Net cash flow from
financing activities 0,3 -0,3 0,2
Increase (+) / decrease (-)
in cash equivalents -0,4 -0,2 0,2
Cash and cash equivalents
at beginning of period 1,3 1,1 1,1
Cash and cash equivalents
at end of period 0,9 0,9 1,3
Statement of changes in equity 31 March 2005
MEUR Share Share Trans- Earnings Equity
capital premium lation
fund diff.
Equity 1.1.2005 2,2 13,1 0,0 -1,2 14,1
Translation differences 0,0
Profit / loss of the period -0,6
Equity 31.3.2005 2,2 13,1 0,0 -1,7 13,6
Statement of changes in equity 31 March 2004
MEUR Share Share Trans- Earnings Equity
capital premium lation
fund diff.
Equity 1.1.2004 2,2 15,4 0,0 -3,3 14,3
Translation differences 0,0
Profit / loss of the period 0,1
Equity 31.3.2004 2,2 15,4 0,0 -3,2 14,4
1-3/05 1-3/04 Change Change-% 1-12/04
Investments, gross
MEUR 0,4 0,3 0,1 41 2,2
% of net sales 6,0 4,7 7,7
Average number of
employees 293 299 -6 -2 291
Reconciliation of equity 31.3.2004
MEUR 31.3.2004
Equity under FAS 15,3
IAS 19 Employee benefits -0,2
IAS 39 Capital loans -1,2
IAS 23 Interests on capital loans -0,6
IFRS 3 Goodwill amortization 0,1
IAS 17 Financial leasing 0,0
IAS 12 Deferred taxes 1,1
Equity under IFRS 14,5
Reconciliation of profit or loss for the period 1.1-31.3.2004
MEUR 31.3.2004
Profit / loss under FAS 0,0
IAS 19 Employee benefits 0,0
IAS 23 Interests on capital loans 0,0
IFRS 3 Goodwill amortization 0,1
IAS 17 Financial leasing 0,0
IAS 12 Deferred taxes 0,0
Profit / loss under IFRS 0,1
Mortgages and assets pledged for liabilities and leasing
commitments
31.3.2005 31.3.2004 31.12.2004
MEUR MEUR MEUR
Mortgages and
pledged assets
Loans from financial
institutions 2,5 1,8 2,4
Corporate mortgages 1,6 3,4 1,6
Mortgages on real estate 1,4 1,5 1,4
Other long-term liabilities 0,6 0,7 0,6
Mortgages on real estate 0,8 0,8 0,8
Leasing commitments 3,8 2,9 4,2
31.3.2005 31.3.2004 31.12.2004
Key ratios
Equity ratio % 58,1 62,2 62,3
Earnings per share, EUR -0,05 0,01 -0,01
Shareholders equity per
share 1,05 1,12 1,09
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
Derivative contracts
The Group does not have any off-balance-sheet financial
instruments.
The figures in the Interim Report are not audited.
Helsinki, 6 May 2005
Board of Directors of Biohit Oyj
Additional information: Osmo Suovaniemi, President and CEO
Tel: 09-773 861, GSM: 040-745 5605
Email: osmo.suovaniemi@biohit.com
http://www.biohit.com
Distribution: Helsinki Exchanges
Financial Supervisory Authority
Press
