Press releases
30 August 2019, Zwingenberg, Germany

BRAIN AG shares strong nine-month figures demonstrating growth in all areas

  • Revenues up 54% from previous year
  • Operating result significantly improved
  • Outlook affirmed

B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) today announced its results for the first nine months of fiscal year 2018/19. These show the BRAIN Group generated revenues of € 27.9 million in the reporting period from 1 October 2018 to 30 June 2019, approximately 54% more than in the same period last year (€ 18.1 million).

Both the organic growth and the acquisition of the Biocatalysts Group in March 2018 contributed to this. Adjusted to exclude the acquisition, organic revenue growth amounted to 23.4% on a nine-month basis.

Total operating performance, i.e. revenues plus subsidies, other income and changes in inventories, rose in the reporting period by around 45% from € 20.5 million to € 29.7 million. All regional markets and business units (Nutrition & Health, Skin Care and Industrial Biosolutions) have shown improvement.

Strategic decisions pay off

“The acquisition of Biocatalysts was the right decision. As well as the additional revenue, the integration of the company will also strengthen organic growth in all areas,” commented Dr. Jürgen Eck, CEO of BRAIN AG, on the nine-month figures. “Moreover, since the sale of Monteil, we have now been able to fully concentrate on B2B business.”

Positive segment development

The product related BioIndustrial segment accounted for the largest share of growth, which can be attributed to significant organic growth in the enzymes and cosmetics business. The segment’s total operating performance rose by 66.7% to € 20.8 million in the nine-month period. With adjusted EBITDA of € 2.3 million (previous year: € 0.2 million), the segment made a significant contribution to the positive development of consolidated earnings.

The BioScience segment, including industrial cooperations, also performed well. Total operating performance for the first nine months rose by 10.7% to € 9.0 million. This was due to both new contracts signed in the Tailor-Made-Solutions segment and to strategic product development partnerships. At € -4.4 million, adjusted EBITDA remained at the previous year’s level.

Significant improvement in operating earnings

In addition to its strong business performance, BRAIN was also in the position to control costs. Cost of materials, personnel expenses and other operating expenses rose at a slower rate than revenue and total operating performance. This more than halved the negative Group EBITDA to € -2.3 million (previous year: € -5.2 million).

“In the first nine months of the financial year, we were able to showcase our potential very successfully and grow significantly faster than the market,” says CFO Manfred Bender. “For the current fiscal year, we expect to achieve our goal of reaching double-digit growth in total operating performance and a significant improvement in EBITDA.”

Key financials (first nine months of fiscal year 2018/19)

(in € million) 9M 2018/19 9M 2017/18 Change %
Revenues 27.9 18.1 +54.0%
Total operating performance1 29.7 20.5 +44.6%
BioScience 9.0 8.1 +10.7%
BioIndustrial 20.8 12.4 +66.7%
Adjusted EBITDA2 -2.1 -4.1 +50.0%
EBITDA -2.3 -5.2 +56.4%
Operating cash flow -4.9 -6.2 +21.2%
30.06.2019 30.09.2018
Cash & cash equivalents 15.4 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 quarterly statement for the period ended 30 June 2019.

More detailed information on the financial results are available at www.brain-biotech.com/investors/financial-publications as part of the quarterly statement for the period ended 30 June 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.

Share this page