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Interim report for the period January - September 2014

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Third quarter July – September 2014

  • Group net sales in the third quarter 2014 amounted to 118.5 MSEK (103.4), an increase by 14.6 percent compared to the corresponding quarter 2013. At comparable exchange rates sales increased by 7.2 percent for the quarter.
  • Operating profit (EBIT) for the quarter increased to 12.6 MSEK (7.6).
  • Result after tax for the period amounted to 11.0 MSEK (6.9).
  • Earnings per share amounted to 0.17 SEK (0.10).
  • The cash flow from operating activities amounted to 16.5 MSEK (14.2).
  • Net cash at September 30 amounted to 72.9 MSEK compared to 61.8 MSEK at June 30.

Nine months, January - September 2014

  • Group net sales in the first nine months 2014 increased by 9.2 percent to 352.6 MSEK (323.0). At comparable exchange rates sales increased by 6.2 percent for the nine months period.
  • Operating profit (EBIT) for the nine month period increased to 35.6 MSEK (25.8).
  • Result after tax amounted to 34.5 MSEK (22.9).
  • Earnings per share amounted to 0.53 SEK (0.34).
  • The cash flow from operating activities amounted to 51.9 MSEK (36.4).
  • Net cash at September 30 amounted to 72.9 MSEK compared to 85.0 MSEK at December 31, 2013.
  • Dividends to shareholders were paid in May to the amount of 38.8 MSEK (34.9).
  • At the end of the reported period Biotage had no holding of own shares. No shares have been acquired under the repurchasing program decided by the 2014 Annual General Meeting. The previous holding of 5,146,883 shares acquired under the previous repurchasing program were cancelled in May according to the resolution by the 2014 AGM.

Comments by CEO Torben Jörgensen

Biotage maintains good momentum in its operations and shows organic growth for the fourth consecutive quarter. The development of the Swedish currency contributes to the high growth percentage for the quarter, 14.6 percent. At comparable exchange rates, the growth for the third quarter is 7.2 percent. With a 6.2 percent growth on a rolling 12 month basis at the end of September we are approaching our long term goal of 8 percent average annual growth.

Operating profit (EBIT) for the quarter improved by 65 percent compared to last year, to 12.6 MSEK. For the first nine months of the year it amounts to 35.6 MSEK, which is a 38 percent improvement. In the third quarter as well as on a rolling 12 month basis we just exceed our 10 percent EBIT margin target.

All geographical areas except Japan show growth compared to the corresponding quarter last year. For the nine month period also Japan reports growth despite a weak Japanese economy after the VAT raise in April this year. The measures initiated last quarter with a geographic division of the distributor sales in the rest of the world and an increased focus on the single distributors have already started to yield results. The negative trend for the indirect sales seen earlier in the year has been broken.

The product area Purification in organic chemistry continues to develop well. So do the sales of our Sample Prep products in analytical chemistry. These product areas are Biotage’s biggest ones and a positive sales development in these is important. During the quarter the preparations for the launch of our automated Sample Prep system Extrahera have been intense. The customer feedback from the demo systems has been very positive. Extrahera was launched on October 1 and we expect that this novel technology platform will not only grow our systems sales, but also drive the sales of consumables in analytical chemistry. In the product area Industrial Resins we have closed yet another collaboration agreement with a new customer and we also received some large orders that we bring with us into the fourth quarter as sales back log.

The gross margin amounts to 54.6 percent for the quarter as well as on a rolling 12 month basis. The distribution of sales between systems and consumables/service is 45 percent systems and 55 percent service and consumables on a rolling 12 month basis. Biotage’s target is that aftermarket products shall constitute at least 60 percent of the sales, as they generally have a better margin and are less cyclical. With the last two years’ successful launches of new systems, a higher share of system sales is expected also in the coming year. Despite the relatively high share of system sales the gross margin for the quarter is on the same level as the preceding quarter. System sales have increased from 43 to 45 percent of the total sales in the quarter and considering this, I am satisfied that the gross margin remains unchanged.

  
For further information, please contact:
Torben Jörgensen, President and CEO, phone: +46 707 49 05 84
Erika Söderberg Johnson, CFO, phone: +46 707 20 48 20

The information is of the kind that Biotage AB (publ) is required to make public according to the Financial Instruments Trading Act. The information was released for publication at 08.30 on October 30, 2014.

About Biotage
Biotage offers efficient separation technologies from analysis to industrial scale and high quality solutions for analytical chemistry from research to commercial analysis laboratories. Biotage’s products are used by government authorities, academic institutions, pharmaceutical and food companies, among others. The company is headquartered in Uppsala and has offices in the US, UK, China and Japan. Biotage has approx. 290 employees and had sales of 445 MSEK in 2013. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website: www.biotage.com

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Biotage Q3 2014

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