Interim report for the period January - September 2015
Third quarter, July - September 2015
- Group net sales in the third quarter 2015 amounted to 149.7 MSEK (118.5), an increase by 26 percent compared to the corresponding quarter last year. At comparable exchange rates sales increased by 7 percent.
- Operating profit (EBIT) for the quarter increased to 19.0 MSEK (12.6).
- Result after tax for the period amounted to 18.3 MSEK (11.0).
- Earnings per share amounted to 0.28 SEK (0.17).
- The cash flow from operating activities amounted to 33.9 MSEK (16.5).
- Net cash at September 30 amounted to 110.6 MSEK compared to 85.3 MSEK at June 30.
Nine months, July - September 2015
- Group net sales in the first nine months 2015 increased by 25 percent to 442.0 MSEK (352.6). At comparable exchange rates sales increased by 7 percent.
- Operating profit (EBIT) for the nine month period increased to 54.6 MSEK (35.6).
- Result after tax amounted to 52.5 MSEK (34.5).
- Earnings per share amounted to 0.81 SEK (0.53).
- The cash flow from operating activities amounted to 86.8 MSEK (51.9).
- Net cash at September 30 amounted to 110.6 MSEK compared to 95.0 MSEK at December 31, 2014.
- Dividends to the shareholders to the amount of 48.5 MSEK (38.8) were paid in May.
Comments by CEO Torben Jörgensen
Biotage again delivers a strong quarter with good organic growth and profitability. It is with great satisfaction that I report a 26 percent sales increase for the quarter and 25 percent so far this year compared to the corresponding periods last year. Also this period these comparative figures are positively influenced by currency effects, primarily the strengthened US dollar. At comparable exchange rates the organic growth is 7 percent, for the quarter as well as the nine month period, 1 percentage better than the half-year result. I am also satisfied that we at the same time are increasing the profitability of our operations. On a rolling 12 month basis the operating margin at EBIT level is 11.8 percent, which exceeds our financial target of 10 percent.
The product area Analytical Chemistry with the Sample Prep products is still leading the sales successes. The sales of the technology platform Extrahera™ continue to develop well and contribute to the growth in analytical chemistry. The product area Sample Prep is now our single biggest product area, having surpassed our traditionally biggest area, Purification in Organic Chemistry. The latter is also growing, although not as fast as the Sample Prep products. Seen over the first nine months of the year practically all product areas are growing. In the third quarter Industrial Products reported the biggest growth expressed as a percentage and this product area now contributes 7 percent of Biotage’s sales.
Practically all regions where we have direct sales are growing and especially the Americas and China had a good third quarter. Also the sales in Europe grew in the third quarter, which is encouraging after a somewhat slow start of the year. During the latest twelve month period Europe shows an 8 percent growth. Distributor sales in the EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific) regions have still not reached the desired level. We continue our focused efforts to improve this sales channel. In EMEA we are also affected by the political unrest in the Middle East and the low oil prices, which together have resulted in a considerably worsened investment climate.
The distribution of sales for systems versus aftermarket products (consumables and service) was 44 and 56 percent, respectively, in the quarter as well as the first nine months of the year. Our goal is that aftermarket products should constitute at least 60 percent of the sales. We do not achieve as high a gross margin in the third quarter as in the second. On a rolling 12 month basis the positive trend continues, however. At the end of September we achieved 55.7 percent compared to 55.4 percent at the end of June. The gross margin can vary considerably between different periods, as it is affected by changes in product mix, geographical distribution and currency effects, among other things.
We continue our efforts to improve the efficiency of the production plant in Cardiff, Wales. We are currently manufacturing three of our instrument systems at this plant and as the work progresses we will be able to automate more production lines for our consumables. We believe that this will lead to improved gross margins long-term. Work is also in progress to obtain environmental certification for this production plant. Environmental certification is demanded by many customers and is well in line with our internal guidelines for sustainable production.
It is with pleasure and confidence that I note that our long-term strategic efforts to grow sales in Analytical Chemistry and develop commercially attractive instrument platforms in all our areas are paying off.
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 in this press release 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, 2015.
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 490 MSEK in 2014. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website: www.biotage.com