B.R.A.I.N. Biotechnology Research and Information Network AG („BRAIN AG“; ISIN DE0005203947 / WKN 520394) today announces several key figures for the financial year 2016/17. Accordingly, the BRAIN Group increased its revenues by 5.8% from € 22.8 million to € 24.1 million. Total operating performance in the reporting period from October 1, 2016, to September 30, 2017, grew by 3.0% year-on-year, from € 26.1 million to € 26.9 million. Adjusted EBIT for the financial year 2016/17 improved from € -7.6 million in the previous year to € -6.4 million, mainly as a result of the good operational progress. The BioIndustrial segment made a slightly positive EBIT contribution of € 0.3 million. Cash flow from operating activities improved to € -5.8 million compared with € -8.7 million in the same period of the previous year.
Development of the financial year 2016/17
“BRAIN continues to grow. In the financial year 2016/17, we increased our revenues by 5.8 percent. We have also made good progress in our industrial partnerships. In November 2016, just a few weeks after the launch of the DOLCE program, we were able to announce the accession of the product categories ‘breakfast cereals’ and ‘snacks’. On July 12, 2017, we acquired a globally active US beverage group as a new member of the DOLCE program and signed a long-term partnership agreement. Moreover, in the course of the financial year, we expanded our BRAIN technology platforms and development expertise in green mining through our successful EcoMetals cooperation with international partners from Germany, France and Poland,” says Dr Jürgen Eck, CEO of BRAIN AG.
The BioScience segment increased its revenues in the reporting period by 8.8% year-on-year to € 10.7 million. In the same period, total operating performance rose by 6.8% to € 13.2 million. The increase mainly reflects the global growth of the cooperation business with industrial partners, e. g. from the specialty chemicals, animal feed and food industries.
In the BioIndustrial segment, revenues increased to € 13.5 million in the financial year, compared with € 13.0 million in the same period of the previous year, which represents an increase of 3.7%. The just stable operating performance of € 13.9 million, compared with € 13.9 million in the previous year, is mainly attributable to active measures to reduce the amount of capital employed and the corresponding reduction in inventories amounting to € -0.2 million. As a result of an increase in inventories in the past fiscal year (amounting to € 0.3 million), the overall effect on total operating performance amounted to € -0.5 million compared with the same period last year. The operating business continues to develop positively, as evidenced by the increase in revenues.
The Group operating result (EBIT) improved from € -13.8 million in the previous year to € -9.4 million. This includes adjustable special items such as personnel expenses from a share-based compensation scheme without impact on liquidity or equity. Adjusted for these special items, the BRAIN Group’s EBIT for the financial year improved from € -7.6 million to € -6.4 million, which is mainly attributable to the operational progress achieved.
Operating cash flow improved significantly from € -8.7 million to € -5.8 million, mainly reflecting the positive development of earnings. In the previous year, cash flow also included approximately € -1.0 million in one-off expenses for the IPO. Cash and cash equivalents, including fixed term deposits, increased from € 18.3 million as of September 30, 2016, to € 39.0 million as of September 30, 2017. This includes € 28 million from a cash capital increase successfully executed on September 7, 2017, with partial utilization of authorized capital.
„The capital increase comprised the issue of 1,641,434 new registered no-par value shares, representing around 10% of the existing share capital at that time, which were subscribed by the long-term investor DAH Beteiligungs GmbH from Mannheim. The proceeds of € 28 million shall be used for M&A transactions,” comments Frank Goebel, CFO of BRAIN AG.
“In the 2017/18 financial year, our main focus will be on accelerating growth. This growth strategy comprises organic growth in our BioScience and BioIndustrial segments. However, we want to grow even more strongly through the implementation of our M&A strategy and the associated creation of additional market access. In defining target companies, we focus on the strategic fit with our own developments and innovations. Further important criteria include an established market access, international sales forces and a profitable core business”, adds Dr Jürgen Eck, CEO of BRAIN AG.
Key financials (financial year 2016/17)
(in € million)
||Total operating performance1
||IPO one-off costs
|Share based employee compensation AnalytiCon
|Post IPO Framework Agreement
|Operating cash flow2
|Cash & cash equivalents 3 as per 03/31
- Revenues + change in inventories + other income including R&D grants
- Including IPO related one-off costs of € 1.0 million in the fiscal year 2015/16
- Including fixed term deposits
More detailed information on the financial results will be available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the Annual Report of BRAIN AG. This will be published as planned on Thursday, 11 January 2018.
This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN group of companies. 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, and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.