Development of the first half-year 2016/17
“Following a modest first quarter of 2016/17, our second quarter figures were strong. The development of the BioScience business is particularly pleasing with the achievement of many relevant milestone payments. Also, the strategic focus of the BioIndustrial segment on higher-margin products in the growing bioeconomy sector is progressing and increasingly paying off,” said Dr Jürgen Eck, CEO of BRAIN AG.
The BioScience segment increased its total operating performance by 8 percent year-over-year to € 6.9 million. The rise reflects a growing cooperation business with globally operating industrial partners, especially from the specialty chemicals and food manufacturing industries, as well as the reaching of development milestones.
The BioIndustrial segment grew its revenues for the first six months of fiscal year 2016/17 to € 6.7 million compared to € 6.2 million in the previous year (an increase of 7 percent). Its total operating performance was stable at € 6.5 million compared to € 6.6 million in the previous year, mainly due to a strong reduction of inventories.
The Group operating result (EBIT) declined year-on-year from € -5.3 million to € -5.6 million reflecting adjustable special items such as personnel expenses from a share-based employee compensation scheme that have no impact on liquidity and/or equity. Eliminating these special items, the adjusted half-year Group EBIT improved from € -3.3 million to € -2.9 million, benefitting from a second quarter adjusted Group EBIT of € -0.6 million compared to € -2.4 million in the prior year quarter reflecting (see below).
The operating cash flow improved significantly from € -4.6 million to € -2.3 million, which is mainly due to the positive business development, including amongst others higher milestone payments. In the previous year, approximately € -1.1 million of one-off IPO costs were included in the operating cash flow.
Cash and cash equivalents, including fixed term deposits, decreased from € 18.3 million as per September 30, 2016 to € 15.0 million as per March 31, 2017 (€ 23.5 million as per March 31, 2016). This includes € -0.5 million of scheduled repayments of financial debt.
Financial Highlights second quarter 2016/17
The BioScience segment achieved a substantial improvement in total operating performance of 27 percent in the second quarter, growing from € 2.9 million to € 3.7 million. The total operating performance of the BioIndustrial segment remained stable at € 3.0 million. The BRAIN Group’s total operating performance in the second quarter thus increased by 12% from € 6.0 million to € 6.7 million.
The Group’s EBIT improved from € -3.2 million in the second quarter of 2015/16 to € -1.2 million in the second quarter of 2016/17. At the same time, the adjusted EBIT improved from € -2.4 million to € -0.6 million.
“The development of the financials for the first half of the current financial year show that we are pursuing our path of sustainable growth consistently. Additional business volume is reflected in corresponding earnings improvements”, commented Frank Goebel, appointed with the AGM on March 9, 2017 as CFO of BRAIN AG.
Key financials (first half-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 € 1.126 million in the fiscal year 2015/16
- Including fixed term deposits
More detailed information on the half-year financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications/ as part of the half-year report for the period ending March 31, 2017.