Adjusted EBITDA in the first half of financial year 2018/19 improved
by € 1.1 million year-on-year to € -1.7 million. In addition to the
general business trend, this positive result was mainly influenced by
two developments. In the first quarter of 2018/19, a number of milestone
payments from collaboration projects were recorded, while in the second
quarter of 2018/19, increased personnel costs related to the expansion
of the three business units Nutrition & Health, Skin Care and
Industrial BioSolutions took effect.
The BioIndustrial segment,
which represents the product business and is key to achieving the growth
targets of BRAIN Group, recorded a 102.1% increase in total revenues to
€ 13.7 million in the first half of 2018/19 compared to € 6.8 million
in the previous year. In addition to organic growth, this was primarily
due to the acquisition in March 2018 of a majority interest in the
leading specialty enzyme producer Biocatalysts Ltd., United Kingdom.
Adjusted EBITDA in the BioIndustrial segment improved from € 0.1 million
in the previous year to € 1.4 million in the first half of financial
The BioScience segment’s total operating performance
in the first half of 2018/19 grew by 10.4% from € 5.6 million in the
prior-year period to € 6.2 million in the current financial year,
primarily as a result of new contracts and follow-up projects. Adjusted
EBITDA of the BioScience segment declined from € -2.9 million in the
prior-year period to € -3.1 million, mainly due to the above-mentioned
increase in personnel expenses.
“We are looking back on a
successful first half of the 2018/19 financial year, with a significant
60.7% increase in total operating performance compared with the previous
year. As in the first quarter of 2018/19, both business segments
contributed to this growth. Our product scalable BioIndustrial segment
again accounted for the lion’s share of the increase in total operating
performance. We see this as a clear confirmation of our strategy to
realize our growth targets primarily by continuously increasing our
product scalable business,” says Dr Jürgen Eck, CEO of BRAIN AG.
view of the BRAIN Group’s satisfactory financial figures for the first
half of the year, we reiterate our aim of achieving a double-digit
growth rate in total operating performance throughout the 2018/19
financial year,” added Manfred Bender, CFO of BRAIN AG.More detailed
information on the quarterly financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the half-year report for the period ended 31 March 2019.