BRAIN AG is starting the 2019/20 financial year with a successful quarter
Today, B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) published its results for the first quarter of the financial year 2019/20. Accordingly, Group revenues in the reporting period from October 1, 2019 to December 31, 2019 increased by 9.4% from € 9.4 million to € 10.3 million. Organically, i.e. without the effect from selling the shares in the Moteil Cosmetics International GmbH, revenue increased by 15.9%. The Group EBITDA decreased slightly from € -0.1 million to € -0.3 million in the first three months of the 2019/20 financial year.
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
Net assets
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.“
Key financials (first three months of the financial year 2019/20)
| (in € million) | 3M 2019/20 | 3M 2018/19 |
|---|---|---|
| Revenues | 10.3 | 9.4 |
| BioScience | 4.0 | 2.8 |
| BioIndustrial | 6.3 | 6.6 |
| Total operating performance1 | 10.4 | 9.9 |
| Adjusted EBITDA22 | -0.2 | -0.0 |
| EBITDA | -0.3 | -0.1 |
| Operating cash flow | -0.6 | -0.1 |
| 31.12.2019 | 30.09.2019 | |
| Cash & cash equivalents | 13.2 | 15.2 |
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 31 December 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 31 December 2019.
Financial Calendar:
www.brain-biotech.com/investors/financial-calendar
Follow BRAIN AG on Twitter (@BRAINbiotech) and LinkedIn (@BRAIN AG).
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.