Revenio Group Corporation: Financial Statement Bulletin, January 1 - December 31, 2018

Stock Exchange Release February 14, 2019 Financial Statement Bulletin at 9.00 am

This release is a summary of Revenio Group’s January-December 2018 financial statement bulletin. The complete report is attached to this release as a pdf-file. The stock exchange release is also available on the company’s website at www.reveniogroup.fi/en.      

2018: Strong growth and profitability continued 

October-December 2018 in brief  

  • Net sales totaled EUR 8.7 (7.6) million, showing an increase of 13.8%
  • Operating profit was EUR 3.0 (1.7) million, representing 34.8% of net sales, an increase of 79.7%
  • The currency-adjusted organic growth of net sales was 13.9%, being slightly stronger than reported
  • Deliveries of ic200 tonometer started
  • Earnings per share, diluted and undiluted EUR 0.100 (0.075)

January-December 2018 in brief  

  • Net sales amounted to EUR 30.7 (26.8) million, up 14.4% from the previous year
  • Operating profit was EUR 10.2 (8.1) million, representing 33.3% (30.3) of net sales, an increase of 25.7%
  • The currency-adjusted organic growth of net sales was 14.9%, being slightly stronger than reported
  • Major successful product launches: Icare ic200, the asthma product Ventica, and the mHome mobile application
  • Clear growth in sales in India and China's emerging markets
  • Nearly 18.5 million probes were sold during the period, which was over 23% more than the previous year
  • Earnings per share, undiluted EUR 0.339 (0.288)
  • The Board of Directors will propose to the Annual General Meeting of March 20, 2019 a dividend of EUR 0.28 (0.26) per-share
Key figures, MEUR 
10–12/  10–12/  Change  1–12/  1–12/  Change 
2018 2017 % 2018 2017 %
Net sales, Group 8.7 7.6 13.8 30.7 26.8 14.4
Operating profit, Group 3.0 1.7 79.7 10.2 8.1 25.7
Net sales, Health Tech 8.7 7.6 13.8 30.7 26.8 14.4
Operating profit, Health Tech 3.7 2.4 53.8 12.6 10.3 22.0
Earnings per share, undiluted 0.100 0.075 0.339 0.288
Cash flow from operating activities 10.4 7.9
Change,
12/2018 12/2017 % points
Equity ratio, % 81.8 84.0 -2.2
Net leveraging, % -55.6 -47.6 -8.0

Financial guidance for 2019

Net sales is expected to show strong growth compared to the previous year and profitability is expected to remain at a strong level. 

Timo Hildén, CEO, on the year 2018:  

“The year 2018 was a year of strong and profitable growth for us. Our net sales increased by 14.4%, totaling EUR 30.7 million. Our operating profit was 33.3 percent, which I consider an excellent achievement for a growth company. Sales increased in all key market areas, which we are very pleased with. In particular, the sales of emerging markets, such as India and China, developed well in line with our expectations. 

During the review period, we invested heavily in product marketing that supports our growth, the launch of new products, and the development of our distributor network. It should be noted that all our current products are less than five years old, which indicates that our product portfolio is up-to-date. During 2018, we also strengthened our organization to support sales growth, especially in the Far East and the United States.

The Icare ic100, launched in 2018, has quickly become our number one product in terms of sales volume. The product has proven to be of very high quality, and the language versions have expanded its user base geographically. 

We launched our new product Icare ic200 in September 2018 in Europe and at the end of the year in Australia and Canada. We will file a sales license application in the U.S. during 2019.

The TonoVET Plus for the measurement of intraocular pressure in animals has been well received by veterinarians around the world.  

Interest in the Icare HOME tonometer device is gradually turning into demand. The cloud-based mHOME mobile app launched during the review period, which connects to the Icare HOME tonometer, facilitates the monitoring of daily fluctuations in intraocular pressure. 

Our growth drivers are the asthma product Ventica and the Cutica hyperspectral camera, developed for the screening and monitoring of skin cancer. Ventica was launched in September; since that time, we have signed distribution agreements in 10 countries. The development of the hyperspectral camera Cutica for skin cancer detection is also progressing as planned. We aim to apply for the European CE marking for the product at the beginning of 2019, after which we will continue with the clinical trials. Oscare Medical’s business did not show any significant signs of picking up during the review period. We will continue to monitor the situation and assess the options in this regard.  

During the review period, our probe sales nearly reached 18.5 million probes sold. We have concentrated the production of probes in Finland, where we opened the fourth production line at the end of 2018. Our flexible and scalable production model allows us to react rapidly to growth in demand.

We have updated our strategy with the goal of further strengthening our global position through strong growth. We want to strengthen our foothold in the growing market in Asia. We see significant new growth potential in China and India in particular. Our growth objectives are supported by global megatrends in health care, such as population growth and ageing. The importance of preventive health care is increasing throughout the world. 

While strengthening our position in the market with existing products, our product development includes screening-related product concepts for new markets and target groups, which we are developing further to ensure organic growth.

Although uncertainty in the global economy has increased, we have entered the year 2019 with positive expectations and confidence: we have a strong market position, high-quality products, a strong brand, and high customer satisfaction. I believe that these factors lay the foundation for good long-term growth prospects.” 

Conference call 

A conference call will be held in English for analysts, investors, and the media on the same day starting at 11.00 a.m. There will be an opportunity to present questions during the conference call. Participants can dial in through one of the following numbers using the participant code 11537216# 

Finland: +358 981 710 310  

Sweden: +46 856 642 651  

United Kingdom: +44 333 300 08 04  

United States: + 1 631 913 14 22 

Audiocast 

CEO Timo Hildén and CFO Robin Pulkkinen’s presentation can also be followed through a live audiocast at https://reveniogroup.fi/sijoittajille/inderes-raportit, beginning at 11.00 a.m. A recording of the presentation will be available at the same address by 4.00 p.m.  

Revenio Group Corporation
Board of Directors
 

For further information, please contact:

Timo Hildén, CEO, tel. +358 40 580 4774
timo.hilden@revenio.fi
 

www.revenio.fi 

DISTRIBUTION:

Nasdaq Helsinki Oy
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
 

Revenio Group in brief 

The Revenio Group is a globally successful Finnish health technology company. We develop and commercialize effective and easy-to-use health tech-related screening devices for the detection of diseases of significance to public health. 

We are currently focusing on the detection and measurement of glaucoma, skin cancer and asthma. Our markets are global and our products are sold in more than 100 countries. 

The Revenio Group consists of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings in health care via preventive measures.  

In 2018, the Revenio Group's net sales totaled EUR 30.7 million, with its operating margin standing at 33.3%. Revenio Group Corporation is listed on Nasdaq Helsinki.