BRAIN AG reports growth for the first nine months of the 2017/18 financial year

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

31.08.2018 / 08:30
The issuer is solely responsible for the content of this announcement.


BRAIN AG reports growth for the first nine months of the 2017/18 financial year

  • Total operating performance of BRAIN Group up 5.0% to EUR 20.5 million
  • Growth is largely driven by the successful acquisition of Biocatalysts Ltd.


Zwingenberg, Germany
August 31, 2018

B.R.A.I.N. Biotechnology Research and Information Network AG today published its financial results for the first nine months of fiscal year 2017/18. Accordingly, BRAIN Group's total operating performance for the reporting period from October 1, 2017, to June 30, 2018, amounted to EUR 20.5 million compared to EUR 19.6 million in the previous year's period, representing a year-on-year growth of approximately 5.0%. Group revenues for the reporting period increased from EUR 17.9 million to EUR 18.1 million. Adjusted Group EBITDA was EUR -4.1 million compared to EUR -3.3 million in the previous year.

The product-related BioIndustrial segment recorded an increase in total operating performance of 73.5% to EUR 5.7 million in the third quarter 2017/18 compared to the previous year's quarter. In the first nine months of fiscal year 2017/18, the BioIndustrial segment's total operating performance improved by 27.7% year-on-year to EUR 12.5 million (previous year EUR 9.8 million). Adjusted EBITDA of the BioIndustrial segment for the first nine months of fiscal year 2017/18 decreased from EUR 0.4 million in the previous year to EUR 0.2 million. The weaker EBITDA is mainly due to negative volume effects.

The BioScience segment, which reflects industrial co-operations, again posted a year-on-year decline in total operating performance of -15.8% from EUR 3.0 million to EUR 2.5 million in the third quarter of 2017/18. Total operating performance in the BioScience segment in the first nine months of 2017/18 fell by -17.6% year-on-year to EUR 8.1 million (previous year EUR 9.9 million). Adjusted EBITDA decreased in the first nine months of fiscal 2017/18 from EUR -3.6 million in the prior-year period to EUR -4.4 million. In the coming fiscal year 2018/19, the BioScience segment is expected to benefit from additional momentum generated by the business development activities launched in the United States in the current fiscal year.

Growth focus on proprietary products

"The acquisition of Biocatalysts Ltd. in March 2018 significantly strengthened our product-driven BioIndustrial segment. In the first nine months of fiscal year 2017/18, BRAIN posted significant double-digit growth in the product-related BioIndustrial segment, although this development was particularly acquisition-related. The weaker development in some areas within the BioIndustrial segment still had an impact in the quarter under review. We expect a stronger momentum for the remainder of the fiscal year there as well," says Frank Goebel, CFO of BRAIN AG.

Dr Jürgen Eck, CEO of BRAIN AG, adds: "The focus of our growth strategy is on the BioIndustrial segment and thus on the product business of BRAIN Group. We have made some encouraging progress in this area in the current financial year so far. We want to continue this positive development in the future. To this end, we will continue to systematically expand our industry partnerships and our own development pipeline as well as our M&A strategy and the production and marketing of products via the BRAIN Group. We focus on our key development programs in market segments such as nutrition and health. It is our ambition to bring innovative products of the BRAIN Group to market as fast as possible. We expect the BRAIN Group to achieve double-digit growth in total income for the 2017/18 financial year as a whole, resulting from both organic and inorganic growth."
 

Key financials (first nine months of fiscal year 2017/18)

(in EUR million) 9M 9M
  2017/18 2016/17
Revenues 18.1 17.9
Total operating performance1 20.5 19.6
BioScience 8.1 9.9
BioIndustrial 12.5 9.8
Adjusted EBITDA -4.1 -3.3
Share based employee compensation AnalytiCon Discovery GmbH -0.2 -0.6
Post IPO Framework Agreement 0.0 -2.4
Acquisition and integration costs -0.9 0.0
EBITDA -5.2 -6.2
Operating cash flow -6.2 -4.2
Cash & cash equivalents as of 30.06. 26.0 8.1
1 Revenues + change in inventories + other income including R&D grants


More detailed information on the financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the quarterly statement for the period ended June 30, 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.

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