Revenio Group Corporation: Interim report January 1-September 30, 2017

Revenio Group Corporation, Interim report, October 26, 2017 at 9:00 am

Revenio Group Corporation: Interim report January 1-September 30, 2017

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 Q1/2017 and Q1-Q3/2017 will be shorter and more concise. The table sections will be reported in accordance with previous practices. The figures are unaudited.

Revenio Group Corporation has adopted the publication procedure enabled by the Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure Obligation on Issuers) and is publishing its half-year review for January-September 2017 as an appendix to this stock exchange release. This release is a summary of Revenio Group Corporation's Interim report Q1-Q3/2017, which is available in full in the PDF file attached to this stock exchange release, and on the company website at www.revenio.fi.

Profitability in the third quarter remained at an excellent level

July-September 2017 in brief, continuing Group operations

  • Net sales totaled EUR 6.4 (5.8) million, showing an increase of 11.1%
  • Operating profit was EUR 2.5 (1.9) million, up by 29.7%
  • The weakening of the US dollar had a major impact on net sales growth. The currency-adjusted organic growth of net sales in July-September was 14.9%, or 3.8%-points stronger than reported
  • Profitability was affected by the decreased cost of manufacture and scalability of fixed expenses
  • Probe sales continued to grow and were 21.6% higher than in the previous year
  • The TonoVET Plus product for measuring intraocular pressure in animals was launched
  • Earnings per share, undiluted EUR 0.24 (0.20)

January-September 2017 in brief, continuing Group operations:

  • Net sales totaled EUR 19.2 (16.8) million, showing an increase of 14.1%
  • Operating profit was EUR 6.4 (4.9) million, up by 31.0%
  • The currency-adjusted organic growth of net sales was 15.7%, or 1.6%-points stronger than reported
  • Probe sales grew and were 25.1% higher than in the previous year
  • The new wireless and cloud-based mHOME application was introduced in June
  • Earnings per share, undiluted EUR 0.64 (0.49)

Key figures, continuing operations, EUR million

  1.7-
30.9.2017
1.7-
30.9.2016
Change-% 1.1-
30.9.2017
1.1-
30.9.2016
Change-%
Net sales, Group 6.4 5.8 11.1 19.2 16.8 14.1
Operating profit, Group 2.5 1.9 29.7 6.4 4.9 31.0
Net sales, Health Tech 6.4 5.8 11.1 19.2 16.8 14.1
Operating profit, Health Tech 2.9 2.3 25.3 7.9 6.1 30.8
Undiluted earnings per share 0.24 0.20   0.64 0.49  
Cash flow from operating activities     5.4 4.0  
     30 Sept 2017 30 Sept 2016 Change, %-point
Equity ratio-%     76.8 78.9 -2.1
Gearing-%      -39.3 -36.4 -2.9

Financial guidance for 2017

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

Timo Hildén, CEO, comments on Q3/2017:

"In the third quarter of 2017, our net sales amounted to EUR 6.4 million, an increase of 11.1%. Our operating profit rose by 29.7%, reaching EUR 2.5 million, which amounts to 38.4% of the net sales. The decline of the US dollar also had an impact on the review period by decreasing our net sales growth by almost 4%-points.

Our operating profit's strong development was greatly affected by our scalable business model. Our earlier investments in human resources and processes have created an excellent growth base and proven our profit-making capacity. This will allow us to take advantage of our scalability to build a wider ophthalmological product range for the diagnostics of glaucoma in the future.

Probe sales continued to grow in accordance with the previous quarters, and we are particularly pleased that the online sales of probes in the United States has taken off better than anticipated.

The sales of Icare HOME tonometers developed according to our expectations. The significance of all-day monitoring of eye pressure in the treatment of glaucoma has gained the undisputed acceptance of the research community. Dozens of published studies have consistently demonstrated the significance of monitoring diurnal fluctuation in the identification and monitoring of glaucoma. This is also very important from the perspective of changes in public health care reimbursement policies.

In late June, we introduced the new cloud-based mHOME mobile application, developed in response to customer feedback, which enables the user to transfer the measurements from the Icare HOME tonometer to a cloud service using a mobile device. This way, the treatment personnel can monitor the patient's measurements or a physician can give the patient the possibility of monitoring their own results. This is a major feature that supports the monitoring of daily fluctuations in intraocular pressure. The product's commercial deliveries will begin at the end of this year.

Sales efforts for the new-generation Icare ic100 tonometer are beginning in Japan, where we received a sales permit in the summer. The Far East is a very interesting market area with future growth potential for us.

The new TonoVET Plus product for measuring intraocular pressure in animals was launched at the beginning of the period and its sales have taken off extremely well, especially in the US. The product is the only device on the market designed for the measurement of intraocular pressure in animals, with a measurement algorithm that is based on actual clinical trials conducted on different animals.

During the review period, we received interim results of the clinical trials launched early this year in Croatia on Revenio Research Oy's asthma product Ventica®, which require further study and possibly algorithm changes before commercial launch of the product. The schedule will be specified by the end of this year. Development work on a product related to skin cancer is progressing as planned, and development of a commercial product is ongoing. Our goal is to have the product ready for official approval processes by the end of 2018. Clinical trials with prototypes have produced the expected results.

Oscare Medical's sales continued to be at a low level in the review period."

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, in which Revenio holds a 53.5% interest. 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 2016, Revenio Group's net sales totaled MEUR 23.4, with its operating margin for continuing operations standing at 30.1%. Revenio Group Corporation is listed on Nasdaq Helsinki.