BRAIN AG publishes its Annual Report for the Financial Year 2019/20
Today, B.R.A.I.N. Biotechnology Research and Information Network AG ("BRAIN AG") published its annual report 2019/20 including the detailed consolidated financial statements for the financial year 2019/20.
The BRAIN Group reported 3.4% organic revenue growth despite the challenging economic environment leading to consolidated revenues of EUR 38.2 million in the past financial year. Total operating performance in the reporting period from October 1st, 2019 to September 30th, 2020 has been at EUR 39.2 million. Adjusted EBITDA slightly improved from EUR -2.2 million in the previous year to EUR -2.0 million due to an improved material expense ratio.
The BioScience business has demonstrated a strong year-on-year organic growth of +8.5%. The BioIndustrial segment could still show an organic growth of +1% despite some Covid-19 related lower sales volumes in selected enzyme products and phasing as well as relocation issues.
The new executive board has prepared the organization for future growth by the realignment of the overall organizational structure, the assignment of clear project responsibilities within the organization and a focused new business development pipeline. With liquid funds of EUR 18.9 million, BRAIN AG maintains a strong capital base for the expected future growth of the company.
The annual report 2019/20 of BRAIN AG is available at https://www.brain-biotech.com/investors/financial-publications/2019-20 .
Due to the uncertainties related to the further development of the Covid-19 pandemic and the associated economic effects, the management board of BRAIN AG has decided to only issue a qualitative guidance at the current point in time. For the 2020/21 financial year, the company targets solid growth in the BioIndustrial segment, a year-on-year improvement of the adjusted EBITDA as well as operating cash flow and a significantly lower amount of one-off charges for the group. In addition, the recent bolt-on acquisition of BioSun Biochemicals Inc, will add significantly to the top-line growth of the BioIndustrial segment. A quantitative guidance will be issued latest with the Q2 results.
An important step for the mid-term growth ambitions of BRAIN AG has been the successful completion of the R&D phase for the development of Brazzein, a protein sweetener which is naturally found in berries from the African plant Pentadiplandra brazzeana. This high intensity sweetener displays an outstanding sweetening potency, untainted taste profile and sugar free functionality. As part of a Joint Development Agreement (JDA), Roquette and BRAIN, will now progress with the approval and industrial scale-up of the protein sweetener in the food and beverage sectors. The sweetener, which BRAIN will be jointly approving and producing, was developed especially for the beverage industry, which today utilizes approximately 70% of the sugar consumed worldwide in its products. This illustrates the sales potential that this novel sweetener offers.
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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.
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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.