Press releases
26 February 2021, Zwingenberg, Germany

BRAIN AG Q1 ‘20/’21 Results

  • Strong performance of Biocatalysts
  • BioScience high comparison base and lower milestones
  • Solid Cash Position

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 2020/21. Group revenues in the reporting period from October 1, 2020 to December 31, 2020 decreased by 21.7 % to € 8.1 million from € 10.3 million. This is mainly attributable to the BioScience segment which has a highly volatile revenue recognition quarter on quarter due to timing effects and milestone payments. The Group adjusted EBITDA decreased to € -1.4 million from € -0.2 million in the first three months of the 2020/21 financial year.

In the same period, the BRAIN Group generated a total operating performance of € 8.5 million compared to € 10.4 million in the same period of the previous year. The total operating performance was thus 18.3 % lower than in the previous year. The cash position at the end of the quarter amounted to a solid € 16.1 million.

Business development by segment

The BioScience segment, which includes the R&D business with industrial partners, achieved revenues of € 2.0 million in the first quarter of 2020/21, minus 50% from the prior-year quarter. The BioScience segment is very volatile on a quarter on quarter basis due to timing effects of contracts and larger milestone payments. BRAIN expects an improvement of the divisional sales performance during the course of the year. Adjusted EBITDA of this segment decreased to € -1.7 million from € -0.6 million, mainly due to lower revenues.

Revenues of the BioIndustrial segment, which covers the scalable product business, slightly declined in the reporting period to € 6.1 million from € 6.3 million. The segment has been faced by a diverging revenue trend of our daughter companies: Biocatalysts Ltd. had a very strong quarterly sales performance while WeissBioTech GmbH posted lower sales volumes driven by headwinds from the pandemic and structural challenges. Adjusted EBITDA of the BioIndustrial segment has been slightly lower to € 0.3 million from € 0.4 million in the first quarter of the financial year 2020/21.

Lukas Linnig, CFO of BRAIN AG, says: "The Covid-19 pandemic is imposing challenges to all companies. We are very actively managing the risks to our employees and the overall business. The BioScience business has been off to a soft start in Q1 but we are confident to see an improving performance during the next quarters. The issues at WeissBioTech are analyzed and will be tackled. We are very happy with the performance of our enzyme products business at Biocatalysts. BioIndustrial as a division will get back to growth in the next quarters.”

Key financials (first three months of the financial year 2020/21)

(in € million) 3M 2020/21 3M 2019/20
Revenues 8.0 10.3
BioScience 2.0 4.0
BioIndustrial 6.1 6.3
Total operating performance1 8.5 10.4
Adjusted EBITDA2 -1.4 -0.2
EBIDTA -1.59 -0.3
Operating cash flow -2.1 -0.6
31.12.2020 30.09.2020
Cash and cash equivalents 16.1 18.9

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 2020

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 2020.

Financial Calendar:
www.brain-biotech.com/investors/financial-calendar

About BRAIN

BRAIN Biotech AG (“BRAIN”) is a leading European industrial biotechnology specialist with a focus on nutrition, health and the environment. As a technology and solutions provider the company supports the biologization of industries with bio-based products and processes. From contract R&D with industrial partners to advancing own disruptive incubator projects and customized enzyme products – BRAIN’s broad cutting-edge biotech expertise and its agile teams are key to success.

BRAIN Biotech AG, Germany, is the parent company of the international BRAIN Group, distributing specialty B2B products like enzymes or bioactive natural products. The BRAIN Group has its own fermentation or production facilities in Continental Europe, UK and the US, which together with the associated biotechnological solution competency complete the value chain within the group.

As a Participant of the United Nations Global Compact, BRAIN Biotech AG is committed to aligning strategies and operations with universal principles on human rights, labour, environment and anti-corruption and to actively advance common societal goals. Our products and services target at least five of the UN SDGs directly.

Since its IPO in 2016, BRAIN Biotech AG is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN DE0005203947 / WKN 520394).

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 by, and future developments at, BRAIN Biotech AG and the BRAIN 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.

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