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.”