- Organic growth of Group revenues +12.2%
- BioScience segment continues dynamic growth
- Full-year forecast confirmed
B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) today published its results for the first nine months of the 2019/20 financial year. Accordingly, the BRAIN Group reports revenues of € 29.6 million compared to € 27.9 million in the same period of the previous year. Taking into account the deconsolidation of Monteil Cosmetics GmbH, this corresponds to organic growth of 12.2%.
Third quarter revenues increased by 8.4% to € 9.6 million from € 8.9 million in the same period last year. This growth was purely organic, achieved in both the BioScience and BioIndustrial segments.
“Particularly considering the general economic situation, we have achieved very good growth,” says Manfred Bender, CFO of BRAIN AG. “The fact that this growth is more pronounced in our research-driven segment is again due to the higher business volume with existing customers as well as new contracts for tailormade solutions projects.”
Development by segments
The BioScience segment generated revenues of € 10.5 million in the reporting period, up 37.5% from the prior-year period. Adjusted EBITDA improved from € -4.4 million to € -3.1 million.
Revenues of the BioIndustrial segment, which is related to product sales, decreased by 5.9% from € 20.3 million to € 19.1 million in the reporting period. Organically, revenues here increased by € 0.4 million or 2.1% from € 18.7 million to € 19.1 million. The adjusted EBITDA of the segment developed positively and increased by 9.2% from € 2.3 million to € 2.6 million. This corresponds to an adjusted EBITDA margin of 13.3% compared to 11.5% in the previous year.
The reasons for the weaker revenue growth in the product business are, in addition to the start of new production facilities in Cardiff (UK) and Büttelborn, the globally reduced demand for bioethanol and alcoholic beverages due to the Corona pandemic. The BRAIN subsidiary WeissBioTech supplies, among others, powerful enzymes to bioethanol producers and the wine industry.
Despite the ongoing Corona virus pandemic and the associated economic uncertainty, BRAIN AG is still confident to make further progress in the projected direction, albeit possibly at a slightly slower pace.