Revenio Group Corporation: Interim report January 1 - September 30, 2018

Revenio Group Corporation: Interim report January 1 - September 30, 2018

Revenio Group Corporation, Interim report, October 25, 2018 at 9.00 am

Revenio Group Corporation: Interim report January 1 - September 30, 2018

Due to an amendment to the Securities Market Act, which came into force on November 26, 2015,the descriptive sections of Revenio's interim reports Q1/2018 and Q1-Q3/2018 will be shorter and more concise. The table sections will be reported in accordance with previous practices. The figures are unaudited.

This release is a summary of Revenio Group Corporation's Interim report Q1-Q3/2018 which is available in full in the PDF file attached to this stock exchange release, and on the company website at www.revenio.fi

Strong third quarter; Net sales increased by 14.8%. The operating profit accounted for 34.4% of net sales.

July-September 2018 in brief, continuing Group operations

• Net sales totaled EUR 7.4 (6.4) million, showing an increase of 14.8%
• Operating profit was EUR 2.5 (2.5) million, up by 2.6%
• Fluctuations in the exchange rate of the US dollar had only a slight effect on net sales. The currency-adjusted organic growth of net sales in July-September was 15.7%, or 0.8 percentage points greater than reported
• The asthma product Ventica ® was introduced in Paris in September at the European Respiratory Congress (ERS)
• The Icare ic200 for professional use received the CE mark in September and was presented at the ESCRS Congress in Vienna at the end of September
• Earnings per share, undiluted EUR 0.085 (0.080)

January-September 2018 in brief, continuing Group operations

• Net sales totaled EUR 22.0 (19.2) million, showing an increase of 14.7%
• Operating profit was EUR 7.2 (6.4) million, up by 11.6%
• The exchange rate fluctuations of the US dollar have had an impact on net sales over the past year. The currency-adjusted organic growth of net sales in January-September was 16.1%, or 1.4 percentage points greater than reported
• Earnings per share, undiluted EUR 0.239 (0.213)

Financial guidance for 2018

Net sales growth is expected to remain strong. Profitability is expected to remain at a healthy level despite relatively increasing growth investments.

Timo Hildén, CEO, comments on Q3/2018:

 "Our net sales for July-September were 7.4 (6.4) million, representing an increase of 14.8%. During the third quarter, sales were strong among others in the United States, the United Kingdom, Japan, Sweden, Norway, and India, as well as in many smaller Far East countries. Fluctuations in the exchange rate of the US dollar only had a slight decreasing effect of 0.8% on organic net sales.

Our operating profit was EUR 2.5 (2.5) million, up by 2.6%. We continued strong investments in both new products and product marketing. Two product launches (Ventica and Icare ic200) as well as clinical trials took place during the third quarter which had an impact on the Q3 operating profit.

The asthma product Ventica ® was introduced in Paris in September at the European Respiratory Congress (ERS). The product was well received, and the event offered us the opportunity to form valuable contacts with new opinion leaders and doctors who have expressed interest in trying out the new measurement technique on child patients in their own countries.

The development of the hyperspectral camera Cutica® for skin cancer detection is progressing according to plan and schedule. We aim to apply for the European CE marking for the product in the beginning of 2019. We will continue to carry out clinical trials, and starting new ones will be easier once the CE marking has been obtained. Increasingly many dermatologists have shown interest in our product.

The demand for the Icare ic100 tonometer has been strong, which is currently creating a good basis for growth. We have used customer feedback for product development, which has contributed to strong demand. The language versions of the product have enabled the product to spread in the Far East countries, for example.

The new-generation tonometer for professionals, Icare ic200, was granted a CE marking in September. The marking will enable the launch of sales and marketing efforts in Europe. The product was presented at the ESCRS Congress in Vienna at the end of September. Based on the feedback we received there, we expect high demand for the product in Europe. The product will replace the Icare PRO, which has been a popular product among ophthalmologists who perform surgery. A sales license application will be submitted for the product in the United States as soon as clinical trials have ended.

As regards the Icare HOME tonometer, we have a number of collaborative projects ongoing around the world, and we have continued to invest heavily in the product, especially in the United States and Europe. The increasing interest in the product has been clearly apparent at industry conferences. In Finland, we cooperate with Instrumentarium; Icare HOME has been in trial use at the Instrumentarium stores in Lappeenranta and Kemi, Finland, and these localities have also invested heavily in outdoor advertising. Glaucoma associations across Finland are interested in Icare HOME, and we have held numerous presentations on the product during the review period. The number of visitors to the Silmänpaine.fi website we opened in May 2018 is increasing.

In the United States, Icare Inc. moved to new premises in Raleigh in September. The new efficient facilities will enable continuing growth also in the future.

Probe sales have increased according to our expectations. In the United States, approximately 25% of probe sales are obtained through the online store." 

General statement

This report contains certain statements that are estimates based on the management's best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in general economic conditions.

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

The Revenio Group in brief

Revenio is a Finnish, globally operating health technology corporation whose worldwide success is based on a strongly patented intraocular pressure measurement technology. 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 through preventive health care. Revenio seeks vigorous growth in health technology. Revenio aims to develop even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology is on the early detection of glaucoma, osteoporosis, skin cancer and asthma, and the monitoring of these during the treatment process.

In 2017, net sales of Revenio Group totaled MEUR 26.8, with an operating margin of 35.5%, excluding non-recurring expenses. Revenio Group Corporation is listed on Nasdaq Helsinki.