In the same period, the BRAIN Group generated a total operating performance of € 10.4 million compared to € 9.9 million in the same period of the previous year. The total operating performance was thus 5.4% higher than in the previous year.
Business development by segments
The BioScience segment, which includes the R&D business with industrial partners, achieved revenues of € 4.0 million in the first quarter of 2019/20, up 42.8% from the prior-year quarter. Adjusted EBITDA of this segment improved from € -0.9 million to € -0.6 million, mainly due to higher revenues and improved personnel expenses and other expense ratios in the BioScience segment.
Revenues of the BioIndustrial segment, which covers the scalable product business, declined in the reporting period from € 6.6 million to € 6.3 million. On an organic basis, however, revenues increased by 3.4% from € 6.1 million to € 6.3 million. The total operating performance decreased slightly from € 6.5 million to € 6.2 million. Adjusted EBITDA fell accordingly from € 0.8 million to € 0.4 million in the first quarter of the financial year 2019/20. The changes in the segment are attributable to ramp-up costs for the start-up of the new production facilities in Cardiff (UK) and Büttelborn (Germany).
Adjusted Group EBITDA showed a slight decline from € -0.0 million in the previous year to € -0.2 million in the first three months of the financial year 2019/20
As a result of the first-time adoption of the accounting standards of IFRS 16, the balance sheet total increased from € 66.1 million to € 70.4 million as of December 31, 2019. The increase in non-current assets compared with September 30, 2019 from € 35.2 million to € 42.3 million as of December 31, 2019 is also attributable to this. Equity decreased in the reporting period from € 17.1 million to € 15.2 million, due to the result for the period.
Non-current liabilities increased from € 34.2 million to € 40.7 million, which is also attributable to the first-time adoption of IFRS 16. Current liabilities fell slightly from € 14.9 million to € 14.5 million.
“I am pleased about this good start to the 2019/20 financial year”, Adriaan Moelker, CEO of BRAIN AG says.
Manfred Bender, CFO of BRAIN AG, says: “The BRAIN Group achieved a double-digit organic growth in revenues in the first quarter of the financial year 2019/20 compared to the previous year. The strong increase in revenues in the BioScience segment is due to higher volumes with existing customers as well as the signing of contracts for so-called tailormade solutions projects. This development confirms that tailor-made solutions for our industrial partners are an important pillar of our business, along with our product business.“