Press releases
29 May 2019, Zwingenberg

BRAIN AG achieves significant growth in the first half of the 2018/19 financial year

B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) today announced its results for the first half of financial year 2018/19. Accordingly, the BRAIN Group generated Group revenues of € 18.5 million in the reporting period from 1 October 2018 to 31 March 2019, compared with € 10.7 million in the same period of the previous year. Group revenues were thus 73% higher than in the previous year. At the same time, total operating performance improved by 60.7% from € 12.3 million to € 19.8 million.

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 year 2018/19.

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.

“In 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.

Key financials

(first half of financial year 2018/19)

(in € million) 6M 2018/19 6M 2017/18
Revenues 18.5 10.7
Total operating performance1 19.8 12.3
BioScience 6.2 5.6
BioIndustrial 13.7 6.8
Adjusted EBITDA2 -1.7 -2.8
EBITDA -1.8 -3.7
Operating cash flow -2.9 -2.8
31.03.2019 30.09.2018
Cash & cash equivalents 18.5 25.5
  1. Revenues + change in inventories + other income including R&D grants
  2. The reconciliation from adjusted to unadjusted EBITDA can be found in the half-year report for the period ended 31 March 2019.

About BRAIN

BRAIN Biotech AG is a leading European supplier of bio-based products and solutions such as enzymes and proteins, microbial production strains, natural compounds and biotechnological solutions for more sustainable industrial processes. The company focuses on the fields of nutrition, health and environment.

BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. The Group's business activities are divided into three segments: The BioProducts segment comprises the product business with specialty enzymes and other proteins, for which the Group operates fermentation facilities in the United Kingdom and production facilities in continental Europe and the United States. The BioScience segment offers research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening. The BioIncubator segment conducts its own R&D projects or those initiated with partners with high value-added potential. A particularly promising incubator project is the development of the Company's own CRISPR-based gene editing technology platform, which is currently being established and expanded by Akribion Genomics (in foundation planning).

Through its own R&D activities, BRAIN Biotech Group is continuously expanding its product portfolio in the field of specialty enzymes and small molecules. The latter are the starting point for screenings, e.g. for novel drug candidates for pharmaceutical applications.

BRAIN Biotech AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since February 9, 2016 (ticker symbol: BNN; securities identification number: ISIN DE0005203947 / WKN 520394). The company employs approximately 330 people and generated revenues of EUR 55,3 million in the fiscal year 2022/23.

For more information, please visit: https://www.brain-biotech.com, LinkedIn, Threads and YouTube.

Disclaimer

This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management. Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. 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, as well as other factors. BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.

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