BRAIN achieves clear improvement in revenues and earnings in the 2016/17 financial year

DGAP-News: B.R.A.I.N. Biotechnology Research And Information Network AG / Key word(s): Final Results

15.12.2017 / 08:30
The issuer is solely responsible for the content of this announcement.


BRAIN achieves clear improvement in revenues and earnings in the 2016/17 financial year

  • Revenues increase by 5.8% to EUR 24.1 million
  • Increase of Group total operating performance from EUR 26.1 million to EUR 26.9 million
  • BioScience segment total operating performance grows 6.8%
  • BioIndustrial segment with positive EBIT contribution

Zwingenberg, December 15, 2017: B.R.A.I.N. Biotechnology Research and Information Network AG ("BRAIN AG"; ISIN DE0005203947 / WKN 520394) today announces several key figures for the financial year 2016/17. Accordingly, the BRAIN Group increased its revenues by 5.8% from EUR 22.8 million to EUR 24.1 million. Total operating performance in the reporting period from October 1, 2016, to September 30, 2017, grew by 3.0% year-on-year, from EUR 26.1 million to EUR 26.9 million. Adjusted EBIT for the financial year 2016/17 improved from EUR -7.6 million in the previous year to EUR -6.4 million, mainly as a result of the good operational progress. The BioIndustrial segment made a slightly positive EBIT contribution of EUR 0.3 million. Cash flow from operating activities improved to EUR -5.8 million compared with EUR -8.7 million in the same period of the previous year.


Development of the financial year 2016/17

"BRAIN continues to grow. In the financial year 2016/17, we increased our revenues by 5.8 percent. We have also made good progress in our industrial partnerships. In November 2016, just a few weeks after the launch of the DOLCE program, we were able to announce the accession of the product categories 'breakfast cereals' and 'snacks'. On July 12, 2017, we acquired a globally active US beverage group as a new member of the DOLCE program and signed a long-term partnership agreement. Moreover, in the course of the financial year, we expanded our BRAIN technology platforms and development expertise in green mining through our successful EcoMetals cooperation with international partners from Germany, France and Poland," says Dr Jürgen Eck, CEO of BRAIN AG.

The BioScience segment increased its revenues in the reporting period by 8.8% year-on-year to EUR 10.7 million. In the same period, total operating performance rose by 6.8% to EUR 13.2 million. The increase mainly reflects the global growth of the cooperation business with industrial partners, e. g. from the specialty chemicals, animal feed and food industries.

In the BioIndustrial segment, revenues increased to EUR 13.5 million in the financial year, compared with EUR 13.0 million in the same period of the previous year, which represents an increase of 3.7%. The just stable operating performance of EUR 13.9 million, compared with EUR 13.9 million in the previous year, is mainly attributable to active measures to reduce the amount of capital employed and the corresponding reduction in inventories amounting to EUR -0.2 million. As a result of an increase in inventories in the past fiscal year (amounting to EUR 0.3 million), the overall effect on total operating performance amounted to EUR -0.5 million compared with the same period last year. The operating business continues to develop positively, as evidenced by the increase in revenues.

The Group operating result (EBIT) improved from EUR -13.8 million in the previous year to EUR -9.4 million. This includes adjustable special items such as personnel expenses from a share-based compensation scheme without impact on liquidity or equity. Adjusted for these special items, the BRAIN Group's EBIT for the financial year improved from EUR -7.6 million to EUR -6.4 million, which is mainly attributable to the operational progress achieved.

Operating cash flow improved significantly from EUR -8.7 million to EUR -5.8 million, mainly reflecting the positive development of earnings. In the previous year, cash flow also included approximately EUR -1.0 million in one-off expenses for the IPO.

Cash and cash equivalents, including fixed term deposits, increased from EUR 18.3 million as of September 30, 2016, to EUR 39.0 million as of September 30, 2017. This includes EUR 28 million from a cash capital increase successfully executed on September 7, 2017, with partial utilization of authorized capital.

"The capital increase comprised the issue of 1,641,434 new registered no-par value shares, representing around 10% of the existing share capital at that time, which were subscribed by the long-term investor DAH Beteiligungs GmbH from Mannheim. The proceeds of EUR 28 million shall be used for M&A transactions," comments Frank Goebel, CFO of BRAIN AG.

"In the 2017/18 financial year, our main focus will be on accelerating growth. This growth strategy comprises organic growth in our BioScience and BioIndustrial segments. However, we want to grow even more strongly through the implementation of our M&A strategy and the associated creation of additional market access. In defining target companies, we focus on the strategic fit with our own developments and innovations. Further important criteria include an established market access, international sales forces and a profitable core business", adds Dr Jürgen Eck, CEO of BRAIN AG.


Key financials (financial year 2016/17)

(in EUR million) 12M 12M
  2016/17 2015/16
Revenues 24.1 22.8
Total operating performance1 26.9 26.1
BioScience 13.2 12.4
BioIndustrial 13.9 13.9
Adjusted EBIT -6.4 -7.6
IPO one-off costs 0 -1.0
Share based employee compensation AnalytiCon -0.6 -1.4
Post IPO Framework Agreement -2.4 -3.9
EBIT -9.4 -13.8
Operating cash flow2 -5.8 -8.7
  30.09.2017 30.09.2016
Cash & cash equivalents3 39.0 18.3
1 Revenues + change in inventories + other income + R&D grants

2 Including IPO related one-off costs of EUR 1.0 million in the fiscal year 2015/16

3 Including fixed term deposits


More detailed information on the financial results will be available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the Annual Report of BRAIN AG. This will be published as planned on Thursday, 11 January 2018.

+++ENDS+++


About BRAIN

B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG; ISIN DE0005203947 / WKN 520394) is one of Europe's leading technology companies in the field of industrial biotechnology, the core discipline of Bioeconomy. As such, BRAIN identifies previously untapped, efficient enzymes, microbial producer organisms or natural substances from complex biological systems that can be put to industrial use. The innovative solutions and products developed by help of this "Toolbox of Nature" are successfully applied in the chemistry, the cosmetics and the food industries. BRAIN's business model is based on two pillars - BioScience and BioIndustrial. The BioScience comprises its frequently exclusive collaboration business with industrial partners. BioIndustrial comprises the development and commercialization of BRAIN's own products and active product components. Further information is available at www.brain-biotech.de/en.


BžRžAžIžN
Biotechnology Research
And Information Network AG
Darmstädter Str. 34-36
64673 Zwingenberg
Germany
www.brain-biotech.de
 
Contact Investor Relations
Dr. Martin Langer
Executive Vice President
Corporate Development
Tel.: +49-(0)-6251-9331-16
Fax: +49-(0)-6251-9331-11
E-Mail: ir@brain-biotech.de


Disclaimer

This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN group of companies. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.



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