Interim report of the Biohit Group 1 January to 30 September 2011
Biohit Oyj
Interim report
20.10.2011 09:30
SUMMARY
January-September 2011:
- Net sales EUR 30.3 million (EUR 28.9 million 1-9/2010), growth 4.8 %
- Operating profit EUR 1.0 million (EUR 0.4 million)
- Profit before taxes EUR 0.6 million (EUR 0.4 million)
- International operations accounted for 96.2 per cent (96.2 %) of net sales
- Earnings per share EUR 0.03 (EUR 0.00)
July-September Q3/2011:
- Net sales EUR 9.8 million (EUR 9.6 million), growth 2.3 %
- Operating profit EUR 0.3 million (EUR 0.4 million)
- Profit before taxes EUR 0.5 million (EUR -0.1 million)
- International operations accounted for 95.8 per cent (95.7%) of net sales
- Earnings per share EUR 0.04 (EUR -0.01 )
JUSSI HEINIÖ, PRESIDENT AND CEO:
“In the beginning of this year we saw moderate growth in net sales; however, in the second quarter the growth trend slowed due to the global economic situation and weakening market outlook. During the reporting period growth was 4.8% and in the third quarter 2.3%. The result for January-September was good due to improved profitability.
In the liquid handling business, demand during the reporting period focused on mechanical pipettes. This year, mechanical pipettes sales have grown by 9%, although demand fell in the third quarter. The economic downturn affected sales of electronic pipettes in particular.
Geographically, Europe, Russia and China saw fairly strong growth. However, elsewhere in Asia demand weakened. In North America, where the market has clearly softened since the first quarter, the situation is most challenging. In addition, net sales have decreased in North America due to the weakening of the dollar.
Growth in the diagnostics business has been slower than expected this year. Growth figures for the diagnostics business were lowered to some degree by a large individual transaction included in the previous year’s comparison period. During the reporting period, the diagnostics business focused on seeking new distributor partners and strengthening the distributor network. The Acetium capsule was launched in the German and French market during the period. Good customer feedback has been received in Germany, while in France marketing efforts got off to a good start in the third quarter. In Finland, the health care companies Terveystalo and Diacor started using the GastroPanel examination at all sites.
In August, Biohit arranged a directed share issue of Series B shares, worth two million euros, to Sartorius, an internationally operating laboratory and process technology provider.
Profitable growth was our key goal for the reporting period. Good results have been achieved through streamlining of operations and cost reductions. At the end of the third quarter, our operating profit had improved by as much as 150% on the previous year. The operating result for the reporting period, EUR 1.0 million, is largely explained by the improvement in profitability. Forecasting is hampered by the fact that the global economic situation is more uncertain than in a long time.”
GROUP’S KEY FIGURES
| 7-9/2011 | 7-9/2010 | Change% | 1-9/2011 | 1-9/2010 | Change% | 1-12/2010 | 1-12/2009 | |
| | ||||||||
| Net sales, MEUR | 9.8 | 9.6 | 2.3 | 30.3 | 28.9 | 4.8 | 40.0 | 35.4 |
| Operating profit/loss, EUR million | 0.3 | 0.4 | -15.6 | 1.0 | 0.4 | 150.2 | 0.5 | 1.2 |
| % of net sales | 3.1 % | 3.8 % | 3.2 % | 1.3 % | 1.3 % | 3.4 % | ||
| Profit/loss before taxes | 0.5 | -0.1 | 704.8 | 0.6 | 0.4 | 60.6 | 0.4 | 0.7 |
| Profit/loss for the period | 0.5 | -0.2 | 339.6 | 0.4 | 0.1 | 575.2 | 0.1 | 0.4 |
| Investments, gross, EUR million | 0.5 | 0.4 | 8.3 | 3.8 | 1.9 | 71.0 | 2.6 | 2.4 |
| % of net sales | 8.3 % | 4.5 % | 12.4 % | 6.7 % | 6.4 % | 6.9 % | ||
| R&D expenditure, EUR million | 0.3 | 0.6 | -37.9 | 1.6 | 1.8 | -12.0 | 2.5 | 2.4 |
| % of net sales | 3.5 % | 5.8 % | 5.2 % | 6.2 % | 6.4 % | 6.8 % | ||
| Average number of personnel | 449 | 403 | 11.4 | 444 | 407 | 9.1 | 412 | 370 |
| Number of personnel at end of period | 439 | 428 | 3.7 | 439 | 428 | 3.5 | 431 | 383 |
| Equity ratio, % | 46.1 % | 44.3 % | 46.1 % | 44.3 % | 44.5 % | 46.8 % | ||
| Earnings per share, EUR | 0.03 | -0.01 | 571.3 | 0.04 | 0.00 | 335.5 | 0,00 | 0.03 |
| Shareholders' equity per share, EUR | 1.14 | 0.99 | 15.2 | 1.14 | 0.99 | 15.2 | 1.01 | 0.99 |
| Average number of shares during the period | 13 163 616 | 12 937 627 | 13 012 957 | 12 937 627 | 12 937 627 | 12 937 627 | ||
| Number of shares at end of period | 13 615 593 | 12 937 627 | 13 615 593 | 12 937 627 | 12 937 627 | 12 937 627 |
REPORTING
Biohit reports on its business segments, which are the liquid handling and diagnostics businesses. In addition, the company reports its net sales by main market areas.
NET SALES AND RESULT
July-September
In the third quarter, net sales were up 2.3 per cent on the corresponding period in 2010, amounting to EUR 9.8 million (EUR 9.6 million). International operations accounted for 95.8 per cent (95.7%) of net sales in July-September.
The operating profit for the third quarter amounted to EUR 0.3 million (EUR 0.4 million) and profit before taxes to EUR 0.5 million (loss before taxes EUR 0.1 million). Earnings per share were EUR 0.04 (EUR -0.01). A weakening euro contributed to the improvement in the Group's net result in the third quarter.
In the third quarter, net sales grew in Europe, Russia and China. In Japan and the United States, net sales decreased.
January-September
In January-September, net sales were up 4.8 per cent on the corresponding period in 2010, amounting to EUR 30.3 million (EUR 28.9 million). International operations accounted for 96.2 per cent (96.2 %) of net sales.
Operating profit amounted to EUR 1.0 million (EUR 0.4 million) and profit before taxes to EUR 0.6 million (EUR 0.4 million). Earnings per share were EUR 0.03 (EUR 0.00).
In the beginning of the reporting period, the company's net sales saw moderate growth, but the growth trend slowed in the second and third quarter. In the first quarter, growth was 9.9. per cent, 2.4 per cent in the second quarter and 2.3 per cent in the third quarter. In January-September, growth was 4.8 per cent. Moderate growth in net sales was mainly due to a slowdown in the Asian markets, the Japanese market in particular, and in the North American market. Another contributing factor was the slow progress made in the diagnostics business in international markets.
Profitability improved on the previous year due to cost savings and an increase in sales. The result for the reporting period was EUR 0.4 million.
Key figures by segment, January-September
Sales and maintenance of liquid handling products accounted for 95.2 per cent of net sales during the reporting period. Net sales of the liquid handling business amounted to EUR 28.9 million (EUR 27.4 million) and net sales of the diagnostics business to EUR 15 million (EUR 1.5 million). The liquid handling business grew by 5.6 per cent and the diagnostics business contracted by 8,3 per cent. Growth figures for the diagnostics business were lowered to some degree by a large individual transaction included in the previous year’s comparison period and a decrease in sales of third party instruments.
The operating profit of the liquid handling business amounted to EUR 2.7 million (EUR 2.4 million), while the operating loss of the diagnostics business totalled EUR 1.7 million (operating loss EUR 2.0 million).
Group net sales by segment
| 7-9 2011 MEUR | 7-9 2010 MEUR | Change % | 1-9 2011 MEUR | 1-9 2010 MEUR | Change % | 1-12 2010 MEUR | |
| | |||||||
| Liquid Handling | 9.4 | 9.1 | 2.9 | 28.9 | 27.4 | 5.6 | 37.8 |
| Diagnostics | 0.4 | 0.5 | -9.0 | 1.4 | 1.5 | -8.3 | 2.2 |
| Total | 9.8 | 9.6 | 2.3 | 30.3 | 28.9 | 4.8 | 40.0 |
Group operating profit by segment
| 7-9 2011 MEUR | 7-9 2010 MEUR | Change % | 1-9 2011 MEUR | 1-9 2010 MEUR | Change % | 1-12 2010 MEUR | |
| | |||||||
| Liquid Handling | 0.7 | 1.1 | -32.7 | 2.7 | 2.4 | 10.6 | 3.4 |
| Diagnostics | -0.4 | -0.7 | 41.6 | -1.7 | -2.0 | 16.4 | -2.9 |
| Total | 0.3 | 0.4 | -15.6 | 1.0 | 0.4 | 150.2 | 0.5 |
Group net sales by geographical area
| Net sales, MEUR | 7-9/2011 | 7-9/2010 | Change % | 1-6/2011 | 1-6/2010 | Change % | 1-12/2010 |
| Europe | 6.4 | 4.7 | 35.3 | 19.9 | 14.9 | 33.5 | 20.8 |
| America | 1.8 | 2.0 | -9.6 | 5.6 | 5.9 | -5.8 | 7.6 |
| Asia | 1.4 | 1.6 | -15.8 | 4.2 | 4.5 | -6.7 | 6.2 |
| Other | 0.3 | 1.2 | -78.2 | 0.7 | 3.6 | -80.8 | 5.4 |
| Group, total | 9.8 | 9.6 | 2.3 | 30.3 | 28.9 | 4.8 | 40.0 |
The impact of currency exchange rates
Net sales in the reporting period grew by 4.8 per cent, and by 5.6 per cent when calculated in local currencies. Exchange rate gains amounted to EUR 0.1 million. In the corresponding period in 2010, exchange rate gains amounted to EUR 0.4 million.
BALANCE SHEET
On 30 September 2011, the balance sheet total was EUR 33.7 million (EUR 29.1 million) and the equity ratio 46.1 per cent (44.3%).
FINANCING
Pursuant to the authorization granted by the AGM on 13 April 2011, the Board of Directors decided on a share issue directed at Sartorius Lab Holding GmbH, who subscribed for a total of 677,966 of Biohit’s new Series B shares. This accounts for approximately 4.98 per cent of Biohit shares and 0.97 per cent of all voting rights conferred by the shares following their registration. The subscription price was EUR 2.95 per share.
RESEARCH AND DEVELOPMENT
Research and development expenditure during the reporting period amounted to EUR 1.6 million (EUR 1.8 million), representing 5.2 per cent of net sales (6.2%). EUR 0.5 million (EUR 0.4 million) in development expenditure was capitalised during the period.
INVESTMENTS
Gross investments during the reporting period totalled EUR 3.8 million (EUR 1.9 million). Biohit made a real estate acquisition in France, in order to optimise its operations by centralising functions in one location. The acquisition accounted for EUR 2.0 million of gross investments and was financed from finance leasing. Due to the sale of Biohit’s previous property, the net investment in land and building was EUR 1.6 million.
PERSONNEL
During the reporting period, the average number of personnel employed by the Group was 444 (407 in the corresponding period in 2010), of whom 198 (189) were employed by the parent company and 246 (218) by subsidiaries.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
During the reporting period, there were no significant changes in the short-term risks previously reported by the company. Costs arising from Biohit's business growth and their impact on the company's profitability, as well as changes in the currency exchange rate, remain the company's most relevant risks.
Business development and new product launches require investments that represent a challenge in terms of Biohit's financial position. However, due to improved profitability and the arrangement of the directed share issue, the company's liquidity improved during the period.
In the liquid handling business, profitability was particularly weakened by lower-than-expected sales in North America, India and Japan. The impacts of the March earthquake in Japan are still affecting demand and sales of liquid handling products. During the period, the market situation deteriorated most clearly in North America, which is an important market area for Biohit, especially with regard to more expensive products such as electronic pipettes. Economic development in North America therefore poses a significant risk to the profitability of the company's business.
Growth for the period in the diagnostics business was lower than expected. In the long term, failure to meet these growth expectations may result in a EUR 2.6 million impairment of goodwill associated with the diagnostics products. That said, long-term development of the diagnostics business continued and seems to be yielding results. The company thus estimates that the risk of impairment has not grown. Investment in sales and marketing is required in order to exploit the marked potential of the diagnostics products.
Biohit conducts a large part of its business in currencies other than the Euro. For this reason, exchange rate fluctuations constitute a key risk to the company's profitability. The parent company partly finances the working capital needs of subsidiaries by granting long payment terms on accounts payables, which results in changes in exchange rate items and thus in the financing costs of the Group. Biohit hedges against the risks associated with exchange rate fluctuations by making procurements and incurring fixed costs in currencies other than the Euro.
OUTLOOK FOR 2011
Growth in net sales has been moderate this year, which is partly due to exceptionally good sales in the previous year’s comparison period. This year, growth of the liquid handling business is mainly based on mechanical pipettes. In the diagnostics business, growth is being sought from the international markets in particular. In addition to sales of diagnostic tests, Acetium, launched on the German and French market during the period, is expected to generate growth.
Seasonal variation traditionally affects development of the Group's net sales, and the last quarter of the year is usually the strongest sales-wise. For this reason, the Group's total net sales are expected to grow by more than 10% this year in accordance with previous guidance, with the total operating result expected to equal approximately 5% of net sales. However, the market situation is highly uncertain, especially in North America, which is an important market area for the company. Achieving the targets therefore depends on there being no fundamental weakening of the market situation.
MAIN EVENTS IN THE REPORTING PERIOD
Liquid handling business
Liquid handling business Biohit's liquid handling business develops, manufactures and markets laboratory equipment and accessories for the pharmaceutical, food, and other industries. Biohit's products are also used in research institutions, universities and hospitals. The product range includes mechanical and electronic pipettes as well as disposable tips. While the majority of the products are marketed under the Biohit brand, the company also manufactures customised OEM (original equipment manufacturer) products based on its innovations and technologies. These products complement the diagnostic test and analysis systems manufactured by companies such as 3M, Johnson & Johnson and bioMérieux. In addition, Biohit offers maintenance, calibration and training services for liquid handling products through its distributor network.
| Liquid Handling | 1-9/2011 | 1-9/2010 | 1-12/2010 |
| Net sales, MEUR | 28.9 | 27.4 | 37.8 |
| Change, % | 5.6 % | 14.9 % | 12.7 % |
| Operating result, MEUR | 2.7 | 2.4 | 3.4 |
| Change, % | 10.6 % | 28.5 % | 4.2 % |
| Operating result, % of net sales | 9.2 % | 8.8 % | 8.9 % |
During the reporting period, sales developed favourably in the liquid handling business for mechanical pipettes. That said, the impacts of the economic downturn are visible, particularly in the sales of electronic pipettes, which failed to reach the expected level. However, the company has invested in profitable growth, leading to higher profitability than last year in the liquid handling business.
Launched in June, the new electronic pipette eLINE 0.1-5 µl has been well-received on the markets. The new pipette is highly suitable for dispensing small volumes of liquid. Thanks to the pipette's patented technology, the tip is completely emptied, making the handling of liquid contamination free, more precise and faster than with other similar pipettes. The new pipette complements Biohit’s range of single channel pipettes. It is particularly suitable for molecular biology laboratories, whose clientele include laboratories conducting forensic research.
Earlier this year, Biohit launched Roboline, an automatic liquid handling instrument, which complements and supports the diagnostics business. Roboline is suitable for accurate, efficient and safe automatic handling of samples and reagents, in various types of diagnostics. These include immunoassays especially for the GastroPanel examination and several other immunoassays using microplates and vertical photometry-based analysis instruments. During the reporting period, Roboline was introduced to customers in France, the UK, Germany, the United States, Russia, China and Japan, and has raised widespread interest in the research laboratories of the pharmaceuticals industry, diagnostics and universities. Based on feedback from customers, Roboline has been developed during the period to achieve greater ease of use and meet the customers' needs even more effectively. During the reporting period, Biohit agreed with a North American company on the delivery of 81 Roboline automatic instruments during 2011 and 2012. Customers of this company operate in the field of product development within the pharmaceuticals industry. This contract is an important opening for Biohit in the OEM business and shows marked expectations regarding the instrument as an OEM product.
The Roboline based analyzer is under development. Like other microplate readers and automated analyzing systems on the market today, this fully automated analyzer for GastroPanel and any other microplate immunoassays is based on the vertical measurement principle.
During the reporting period, the manufacture of mechanical pipettes was transferred to Asia, where growth in demand for these products is strongest. In the future, the production facility in Kajaani will focus on manufacturing high-tech products.
Biohit's pipette calibration laboratory in Suzhou, China, was the first company in China to be granted CNAS (China National Accreditation Service) accreditation in July. This accreditation strengthens the company's market position in China.
Diagnostics business
Biohit's diagnostics business develops, manufactures and markets test and analysis systems for the diagnosis and prevention of diseases of the gastrointestinal tract. These tests and systems are based on innovations and research data. The product range includes GastroPanel examinations and ColonView quick tests for primary healthcare; lactose intolerance and Helicobacter pylori quick tests for specialised healthcare; and instruments and analysis systems for laboratories. The company also markets GastroPanel laboratory analysis packages. In addition to GastroPanel test kits, this package includes liquid handling products, instruments, and software, as well as installation, training, and maintenance services. The GastroPanel laboratory concept is geared towards facilitating the efficient introduction of GastroPanel examinations.
Biohit’s service laboratory provides analyses of tests developed by Biohit, and the determination of carcinogenic acetaldehyde in foodstuffs and alcoholic beverages. On a global scale, exposure to acetaldehyde is linked to approximately 4 million new cancer cases annually, or nearly 40 per cent of all cancers. Biohit has developed products and a method to reduce exposure to acetaldehyde in the gastrointestinal tract and food (http://www.acetium.com/test-your-acetaldehyde-exposure).
The Acetium capsule developed by the company binds carcinogenic acetaldehyde in the stomach. Acetium products were developed in cooperation with researchers at the University of Helsinki and Biohit's scientific advisors.
Prescription-free Acetium capsules are recommended for use after the consumption of food or alcohol, to prevent the possible risk of gastric and oesophageal cancer by those who:
- have an anacidic or low-acid stomach due to atrophy in the mucosa of the stomach, and a functional disorder resulting from autoimmune disease or a Helicobacter pylori infection (atrophic gastritis) (diagnosed with GastroPanel)
- have an untreated Helicobacter pylori infection (diagnosed with GastroPanel)
- use protein pump inhibitors (PPIs) or H2-receptor blockers
- have undergone stomach surgery.
Biohit’s GastroPanel and Acetium innovations form a unique pairing in the prevention of gastric and oesophageal cancer. GastroPanel detects the Helicobacter pylori infection or atrophic gastritis and its associated risk of gastric and oesophageal cancer in time, while treatment is still possible. Atrophic gastritis of the corpus, which rarely heals, leads to a permanently low-acid or anacidic stomach. Mouth microbes are able to live in an anacidic stomach and produce acetaldehyde from alcohol and the sugars contained in food. In October 2009, the WHO classified acetaldehyde as a Group I carcinogen – a group which also includes asbestos, tobacco and benzene.
Standardised ethical and legislative principles govern all Group I carcinogens, regardless of their source. All possible methods should be used to reduce exposure to these carcinogens in food and the organs. Protected by granted and pending patents, Acetium capsules are so far the only way of inactivating carcinogenic acetaldehyde in the stomach, which in turn enables the prevention of gastric and oesophageal cancer. Biohit has applied for patents in several countries for the BioFood method, which can be used to bind and inactivate acetaldehyde in alcoholic beverages and foodstuffs before it enters the mouth. The Acetium lozenge binds acetaldehyde already dissolved into saliva from cigarette smoke. Protected by pending patents, the Acetium lozenge may also help users to give up smoking. This will be further examined in a study on the topic. In animal tests, acetaldehyde has been found to be addictive.
| Diagnostics | 1-9/2011 | 1-9/2010 | 1-12/2010 |
| Net sales, MEUR | 1.4 | 1.5 | 2.2 |
| Change, % | -8.3 % | 20.2 % | 23.7 % |
| Operating result, MEUR | -1.7 | -2.0 | -2.9 |
| Change, % | 16.4 % | -32.0 % | -40.1 % |
| Operating result, % of net sales | -120.2 % | -131.7 % | -127.3 % |
At Group level, sales of the diagnostics business did not develop as expected during the reporting period. Net sales developments have mainly been favourable in Biohit's domestic market in Finland.
At the beginning of the year, Biohit combined the management of sales and marketing for the liquid handling and diagnostics businesses. In addition, the company has made changes to its sales organisation. In the international market in particular, diagnostics sales have been streamlined by charting distributor partners and strengthening the distributor network.
In Finland Terveystalo, a private healthcare company operating nationwide, included the GastroPanel examination, developed by Biohit, in its service offering this spring. The GastroPanel examination is now available from all of the one hundred-plus Terveystalo sites across Finland. Health care company Diacor has also included the GastroPanel examination in its offering. Diacor's doctors have been trained to implement the examination, and it is available from all Diacor sites in the capital region. In Europe, use of GastroPanel is expected to increase, especially in Germany and Italy, where Biohit has invested strongly in marketing.
In the spring, Biohit launched the Acetium capsule on the German market. Acetium is available from all German pharmacies. During the reporting period, the launch of Acetium in France also gathered pace.
ADMINISTRATION
Authorisations of the Board of Directors
Based on a resolution of the AGM held on 13 April 2011, the Board of the company is authorised to decide on the issue of shares and to issue the special rights referred to in Chapter 10, Section 1 of the Limited Liability Companies Act so that the maximum number of new Series B shares to be issued pursuant to the special rights is 2,000,000, which corresponds to approximately 20% of the company's Series B shares. Pursuant to this authorisation, the Board of Directors decided to arrange a share issue directed at Sartorius in August.
According to the resolution, the Board of Directors is entitled to decide on all terms and conditions regarding the issue of shares and the issue of special rights. The issue of shares and the issue of special rights entitling to the receipt of shares can occur in deviation from the subscription right of shareholders (special issue). Such an authorisation remains valid for three years from the resolution of the AGM.
SHARE TURNOVER AND PRICE DEVELOPMENT
Biohit Oyj's shares are divided into series A and series B shares. There are 2,975,500 series A shares and 10,640,093 series B shares, totalling 13,615,593 shares. Series A shares confer 20 votes per share and Series B shares 1 vote per share. The dividend paid for Series B shares is, however, two (2) per cent of the nominal value higher than that paid for Series A shares. The total market capitalisation value (supposing that the market capitalisation value for series A and B shares is equal) at the end of the period was EUR 30.9 million (EUR 30.4 million on 30 September 2010).
Biohit Oyj's series B shares are quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group under the code BIOBV.
| BIOBV/NASDAQ OMX Helsinki | 1-9/2011 | 1-9/2010 |
| High, EUR | 3.38 | 4.91 |
| Low, EUR | 1.74 | 1.50 |
| Average, EUR | 2.52 | 3.49 |
| Latest, EUR | 2.27 | 2.35 |
| Turnover, EUR | 4,454,892 | 30,866,555 |
| Turnover, volume | 1,768,148 | 8,838,544 |
Shareholders
As a result of the directed share issue arranged during the reporting period, the number of the company's shares grew by 677,966 shares.
At the end of the reporting period on 30 September 2011, the company had 4,495 shareholders (4,750 on 30 September 2010). Private households held 68.45% (73.11%), companies 23.43% (23.25%), and public sector organisations 2.52% (2.81%) of the shares. Foreign ownership or nominee registrations accounted for 5.60% (0.76%) of shares.
Further information on the shares, major shareholders, and management’s shareholdings is available on the company’s website at www.biohit.com/investors.
ACCOUNTING PRINCIPLES
This interim report was prepared in accordance with the IAS 34 standard.
Biohit Oyj has applied the same accounting principles in preparing this financial statement bulletin as for its 2010 financial statements. The IFRS standards that came into effect in 2011 did not affect the accounting principles.
All the figures in the interim report have been rounded up or down, due to which the sums of figures may deviate from the sum total presented.
The figures in this interim report have not been audited.
CONSOLIDATED INCOME STATEMENT
| 7-9 2011 MEUR | 7-9 2010 MEUR | Change % | 1-9 2011 MEUR | 1-9 2010 MEUR | Change % | 1-12 2010 MEUR | |
| Net sales | 9.8 | 9.6 | 2.3 | 30.3 | 28.9 | 4.8 | 40.0 |
| Other operating income | 0.0 | 0.0 | -100.0 | 0.0 | 0.1 | -84.0 | 0.2 |
| Increase/decrease in inventories in finished goods and in work in progress | 0.1 | 0.3 | 72.8 | 0.4 | -0.4 | 195.4 | -0.4 |
| Materials and services | -2.7 | -2.0 | 34.8 | -7.2 | -5.4 | 33.7 | -7.8 |
| Personnel expenses | -4.0 | -4.0 | 0.1 | -13.3 | -12.4 | 7.0 | -17.1 |
| Depreciation | -0.5 | -0.4 | -23.9 | -1.4 | -1.3 | 15.2 | -1.7 |
| Other operating expenses | -2.3 | -3.1 | -25.2 | -7.9 | -9.2 | -14.0 | -12.8 |
| Operating profit/loss | 0.3 | 0.4 | -15.6 | 1.0 | 0.4 | 150.2 | 0.5 |
| Financial income | 0.3 | -0.1 | 432.5 | 0.3 | 0.6 | -48.8 | 0.7 |
| Financial expenses | -0.1 | -0.4 | -77.6 | -0.7 | -0.6 | 16.6 | -0.8 |
| Profit/loss before taxes | 0.5 | -0.1 | 704.8 | 0.6 | 0.4 | 60.6 | 0.4 |
| Direct taxes | -0.1 | -0.1 | 30.9 | -0.2 | -0.3 | -31.3 | -0.3 |
| Profit/loss for the period | 0.5 | -0.2 | 339.6 | 0.4 | 0.1 | 575.2 | 0.1 |
| Other items in the comprehensive income statement | |||||||
| Currency-related differences | 0.2 | -0.2 | 166.4 | 0.1 | -0,0 | 840.0 | 0.2 |
| Total comprehensive income for the period | 0.6 | -0.4 | 245.7 | 0.5 | 0.0 | 1 127.3 | 0.3 |
Biohit Oyj’s earnings are attributable to the equity holders of the parent company in their entirety, as there are no minority interests.
| Earnings per share calculated from earnings attributable to parent company shareholders | 1-9 2011 | 1-9 2010 | 1-12 2010 |
| Earnings per share, diluted*, EUR | 0.03 | 0.00 | 0.00 |
*) The convertible bond is not dilutive in respect of earnings per share in the financial years 2011 and 2010.
CONSOLIDATED BALANCE SHEET
| 30.9.2011 | 30.9.2010 | Change | 31.12.2010 | |
| MEUR | MEUR | % | MEUR | |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Goodwill | 2.6 | 2.6 | 0.0 | 2.6 |
| Intangible assets | 3.7 | 2.8 | 32.4 | 3.2 |
| Property, plant and equipment | 7.9 | 6.7 | 17.7 | 6.5 |
| Receivables | 0.0 | 0.0 | 9.5 | 0.0 |
| Deferred tax assets | 1.7 | 1.8 | -3.8 | 1.8 |
| Total non-current assets | 16.0 | 14.0 | 14.5 | 14.2 |
| CURRENT ASSETS | ||||
| Inventories | 6.4 | 5.2 | 23.0 | 5.2 |
| Trade and other receivables | 7.6 | 7.6 | 0.0 | 7.8 |
| Financial assets at fair value through profit or loss | 1.7 | 0.6 | 208.0 | 0.5 |
| Cash and cash equivalents | 2.0 | 1.7 | 15.7 | 1.7 |
| Total current assets | 17.7 | 15.1 | 17.3 | 15.2 |
| TOTAL ASSETS | 33.7 | 29.1 | 16.0 | 29.4 |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to parent company shareholders | ||||
| Share capital | 2.3 | 2.2 | 5.2 | 2.2 |
| Invested unrestricted equity fund | 14.3 | 12.4 | 15.2 | 12.4 |
| Currency-related differences | 0.0 | -0.3 | 93.4 | -0.1 |
| Retained earnings | -1.1 | -1.5 | 24.9 | -1.5 |
| Total equity | 15.5 | 12.8 | 21.0 | 13.0 |
| NON-CURRENT LIABILITIES | ||||
| Deferred income tax liabilities | 0.1 | 0.0 | 188.5 | 0.0 |
| Pension obligations | 0.2 | 0.1 | 26.7 | 0.2 |
| Total interest-bearing liabilities | 9.8 | 4.5 | 120.3 | 8.5 |
| Other liabilities | 0.7 | 0.7 | 5.9 | 0.7 |
| Total non-current liabilities | 10.8 | 5.3 | 104.2 | 9.4 |
| CURRENT LIABILITIES | ||||
| Trade payables | 2.5 | 2.1 | 18.8 | 1.9 |
| Total interest-bearing liabilities | 1.2 | 4.8 | -76.3 | 0.9 |
| Other liabilities | 3.7 | 3.9 | -4.3 | 4.2 |
| Total current liabilities | 7.5 | 11.0 | -32.3 | 7.0 |
| Total liabilities | 18.2 | 16.3 | 11.9 | 16.4 |
| TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | 33.7 | 29.1 | 15.9 | 29.4 |
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Statement of changes in consolidated shareholders’ equity on 30 September 2011
| MEUR | Share capital | Currency-related differences | Invested unrestricted equity fund | Retained earnings | Shareholders’ equity |
| Shareholders’ equity on 1 January 2011 | 2.2 | -0.1 | 12.4 | -1.5 | 13.0 |
| Share issue | 0.1 | 1.9 | 2.0 | ||
| Total comprehensive income for the period | -0,0 | 0.4 | 0.4 | ||
| Shareholders’ equity on 30 September 2011 | 2.3 | -0,2 | 14.3 | -1.1 | 15.5 |
Statement of changes in consolidated shareholders’ equity on 30 September 2010
| MEUR | Share capital | Currency-related differences | Invested unrestricted equity fund | Retained earnings | Shareholders’ equity |
| Shareholders’ equity on 1 January 2010 | 2.2 | -0.3 | 12.4 | -1.5 | 12.7 |
| Total comprehensive income for the period | -0,0 | 0.1 | 0.0 | ||
| Shareholders’ equity on 30 September 2010 | 2.2 | -0.3 | 12.4 | -1,5 | 12.8 |
CASH FLOW STATEMENT
| 1-9/2011 MEUR | 1-9/2010 MEUR | 1-12/2010 MEUR | |
| CASH FLOW FROM OPERATIONS | |||
| Profit /loss for the period | 0.4 | 0.4 | 0.1 |
| Adjustments | 1.9 | 1.3 | 2.1 |
| CHANGES IN WORKING CAPITAL | -0.7 | -0.2 | 0.1 |
| Interest paid and payments on other financial expenses | -0.3 | -0.2 | -0.5 |
| Interest received | 0.0 | 0.0 | 0.0 |
| Realised exchange rate gains and losses | -0.1 | 0.5 | 0.4 |
| Direct taxes paid | -0.1 | -0.1 | -0.2 |
| Net cash flow from operations | 1.1 | 1.7 | 2.0 |
| CASH FLOW FROM INVESTMENTS | |||
| Investments in tangible and intangible assets | -1.4 | -1.2 | -1.8 |
| Proceeds from tangible assets | 0.4 | 0,0 | |
| Investments and income from the disposal of investments into funds and deposits, net | -1.2 | -0.2 | -0.1 |
| Net cash flow from investments | -2.2 | -1.4 | -1.9 |
| CASH FLOW FROM FINANCING | |||
| Share issue | 2.0 | ||
| Loan withdrawals | 0.5 | 1.2 | 5.7 |
| Loan repayments | -1.1 | -1.5 | -5.8 |
| Net cash flow from financing | 1.4 | -0.3 | -0.1 |
| Increase (+)/decrease (-) in cash and cash equivalents | 0.3 | 0.0 | -0,0 |
| Cash and cash equivalents at the beginning of period | 1.7 | 1.6 | 1.6 |
| Effect of exchange rate changes | 0.0 | 0.1 | 0.1 |
| Cash and cash equivalents at the end of period | 2.0 | 1.7 | 1.7 |
RELATED PARTY TRANSACTIONS
There have been no noticeable changes in related party transactions during the reporting period.
PLEDGES, CONTINGENT LIABILITIES AND OTHER LIABILITIES
| 1-9 2011 MEUR | 1-9 2010 MEUR | 1-12 2010 MEUR | |
| Collaterals given for the parent company | |||
| Corporate mortgage | 2.5 | 2.3 | 2.5 |
| Mortgage on real estate | 2.7 | 2.0 | 2.7 |
| Guarantees | 0.0 | 0.1 | 0.0 |
| Collaterals given on behalf of subsidiaries | |||
| Guarantees | 0.2 | 0,0 | 0.2 |
| Other liabilities | |||
| Leasing commitments: | |||
| Due for payment before one year | 0.8 | 0.8 | 0.8 |
| Due for payment after 1 year but not later than 5 years | 0.9 | 1.1 | 1.1 |
| Due for payment after 5 years | |||
| Total | 1.7 | 1.9 | 1.9 |
| Other rental commitments: | |||
| Due for payment before one year | 0.8 | 0.8 | 0.9 |
| Due for payment after 1 year but not later than 5 years | 1.0 | 1.5 | 2.0 |
| Due for payment after 5 years | 0.2 | 0.2 | 2.0 |
| Total | 2.0 | 2.4 | 5.0 |
| Total other liabilities | 3.7 | 4.4 | 6.9 |
| Total collaterals and contingent liabilities | 9.1 | 8.7 | 12.3 |
Helsinki, on 20 October 2011
Biohit Oyj
Board of Directors
Further information:
Jussi Heiniö, President and CEO
Tel. +358 (0)9 773 861
jussi.heinio@biohit.com
Distribution:
NASDAQ OMX Helsinki Oyj
Central storage facility (www.oam.fi)
Press
About Biohit Oyj
Biohit Oyj is a globally operating Finnish biotechnology company established in 1988. Biohit's mission crystallises in its motto “Innovating for Health”. The purpose of the company is to produce innovations, new technologies and analysis systems for use in medicine, research institutions and industry, helping to promote research and diagnostics and to improve quality of life by preventing disease, human suffering and financial loss. Our duty is also to innovate and develop the marketing and availability of our products and services, in order to ensure the profitable growth of the company and its ability to pay dividends.
Biohit works with scientific communities to produce new technologies, products, and services based on research results and innovations that can be used to develop safe and cost-effective liquid handling solutions for laboratory work, as well as diagnostic tests for the early detection and prevention of diseases of the gastrointestinal tract.
Biohit has two business segments: liquid handling and diagnostics. Liquid handling products include electronic and mechanical pipettes, disposable tips as well as pipette maintenance and calibration services for research institutions, healthcare and industrial laboratories.
The diagnostics business comprises products and analysis systems for the early diagnosis and prevention of gastrointestinal diseases, such as the blood-sample based GastroPanel examinations for the diagnosis of stomach illnesses and associated risks, quick tests for the diagnosis of lactose intolerance and H. pylori infection in connection with gastroscopy, and the ColonView examination for the early detection of intestinal bleeding that indicates a risk of colorectal cancer. Acetium reduces the amount of carcinogenic acetaldehyde in an anacidic stomach.
The Biohit Group employs approximately 440 people. The company is headquartered in Helsinki, Finland, and has subsidiaries in France, Germany, the UK, Russia, India, China, Japan, and the USA. The company also has a representative office in Singapore. Biohit's products are also sold through about 200 distributors in 70 countries.
Since 1999, Biohit's Series B share has been quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group and is traded under the code BIOBV (www.biohit.com/fi/sijoittajat).
Read more at www.biohit.com.