- 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.”