Press releases
31 May 2016, Zwingenberg

BRAIN continues to demonstrate a solid business performance in the first half year 2015/16

Zwingenberg, May 31, 2016: B.R.A.I.N. Biotechnology Research and Information Network AG (“BRAIN AG“; ISIN DE0005203947 / WKN 520394) today published its financial results for the first half of fiscal year 2015/16. Accordingly, during the reporting period from October 1, 2015 to March 31, 2016, the business developed positively with only one exception. The BRAIN Group’s total operating performance increased from Euro 12.8m to Euro 13.0m in a year-over-year comparison. While the “BioIndustrial” segment experienced a decline in demand for enzymes used in the bioethanol production, the “BioScience” segment, recorded double-digit growth rates.

The total operating performance of the “BioIndustrial” segment decreased by 7 percent to Euro 6.6m in the first half year of 2015/16, from Euro 7.1m in the previous year period. This development is mainly due to the decrease in the enzyme business of the WeissBioTech subsidiary, where the growth in the field of “Specialty Enzymes” was overcompensated by the oil price related weak demand for “Bulk Enzymes” e.g. used in the bioethanol production.

In the transport sector bioethanol serves as a substitute for gasoline produced from mineral oil. Due to the significant fall in oil prices, especially in the second quarter of the fiscal year 2015/16, oil was even cheaper than bioethanol for some time. Accordingly, demand for bioethanol as well as for enzymes used in its production was low in that period of time. Against this background, the strategic focus of WeissBioTech on the more profitable and fast growing field of “Specialty Enzymes” will be further promoted and expanded. As a result, the share of total Group operating performance of the industrial product business, combined in the “BioIndustrial” segment, decreased from 55 percent to 51 percent. The remaining 49 percent were contributed by the “BioScience” segment, representing the collaboration business of BRAIN, where the total operating performance in the first half year of 2015/16 increased by 11 percent year-over-year from Euro 5.7m to Euro 6.4m.

The Group operating result (EBIT) declined from Euro -2.1m to Euro -5.3m over the previous year. Adjusted for one-off IPO-costs of Euro 1.1m and personnel expenses resulting from a share-based employee compensation scheme of Euro 0.9m, the adjusted Group EBIT amounted to Euro -3.3m in the first six months of fiscal year 2015/16. Thereof, Euro -0.2m relate to the “BioIndustrial” segment and Euro -3.1m to the “BioScience” segment.

“The industrialisation strategy and the expansion of our own product pipeline are progressing as planned. An increasing focus on Specialty Enzymes, e.g. for use in food and fruit juice production, will contribute to a continuous reduction of oil price sensitivity, which has unfortunately overshadowed the otherwise very positive development in the first half-year. Besides that, we can still rely on our collaboration business with industrial partners as a solid second pillar, as evidenced once again in the first half-year of 2015/16. We will continue to pursue our course of profitable growth and, from today’s perspective, we expect to reach EBIT break-even as planned in the course of the fiscal year 2017/18”, comments Dr Jürgen Eck, CEO of BRAIN AG.

Key financials (first six months of fiscal year 2015/16)

(in Euro million)1
6M
2015/16
6M
2014/15
Total operating performance2 12.952 12.791
BioScience 6.386 5.737
BioIndustrial 6.631 7.123
Adjustments (consolidation effects) -0.066 -0.070
EBIT -5.271 -2.099
Adjusted EBIT3 -3.253 -2.087
Group result -6.125 -2.748
Equity 31.826 5.755
Equity in percent of total assets 67.8% 17.99%
Result per share in Euro -0.44 -0.21
Cash flows from operating activities -4.568 -2.713
Cash flows from financing activities 25.238 1.633
  1. The financial figures of the first half of fiscal 2015/16 are comparable only to a limited extent to the values of the previous year, as for the first half of FY 2014/15 they include the financial figures of the WeissBioTech organisations only since November 2014 due to the acquisition.
  2. Revenues + change in inventories + other income including R&D grants, only comparable to a limited extent
  3. Adjusted for one-off costs of the IPO and expenses resulting from share-based employee participation plans

More detailed information on the half-yearly financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the half-year financial report for the period ending March 31, 2016.