STRATEC reports substantial growth in first three months of 2014

STRATEC Biomedical AG / Key word(s): Quarter Results/Interim Report

14.05.2014 / 07:34

STRATEC reports substantial growth in first three months of 2014

- Sales of EUR 34.4 million in 3M/2014 (+13.5%; 3M/2013: EUR 30.3 million)
- EBIT margin of 15.5%** in 3M/2014 (+90 basis points; Q1/2013: 14.6%)
- EBIT of EUR 5.3 million** in 3M/2014 (+20.7%; 3M/2013: EUR 4.4 million)
- Consolidated net income of EUR 4.4 million** in 3M/2014 (+20.8%; 3M/2013: EUR 3.6 million)
- Earnings per share of EUR 0.37** in 3M/2014 (+19.4%; 3M/2013: EUR 0.31)
- Proposed dividend of EUR 0.60 per share (distribution in previous year: EUR 0.56)

Birkenfeld, May 14, 2014

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its results for the period from January 1, 2014 to March 31, 2014 upon the publication of its Interim Report as of March 31, 2014.

Key figures (EUR 000s) 01.01.- 03.31.2014           01.01.- 03.31.2013*               Change
Sales 34,370 30,285 +13.5%
EBIT 5,326** 4,411 +20.7%
EBIT margin (%) 15.5** 14.6 +90 BPS
Consolidated net income 4,372** 3,618 +20.8%
Earnings per share (EUR) 0.37** 0.31 +19.4%

* The accounting methods used in the consolidated financial statements were amended in line with IAS 8 in the 2013 financial year. Reference is made in this respect to the information in the Annual Report 2013 in Section A of the notes to the consolidated financial statements.

** 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the employment contract for a retired member of the Board of Management. Unadjusted EBIT amounts to EUR 4.4 million, the corresponding EBIT margin amounts to 12.7%, consolidated net income to EUR 3.7 million and earnings per share to EUR 0.31. The effective amount of the liability due may differ at the time of payment.


Financial performance
The Group generated sales growth of 13.5 % in the first quarter of the 2014 financial year. This was slightly ahead of STRATEC's full-year budget, which forecasts growth of between 8% and 12%. This variance is consistent with previously observed quarterly fluctuations within the business. Of this sales growth, the largest share was from systems that were launched between 2011 and 2012. Systems launched onto the market in the past 15 months are set to make an increasingly marked contribution to the company's growth in future.

In the first quarter of 2014 EBIT amounted to EUR 5.3 million with an EBIT margin of 15.5%. This further improvement in the EBIT margin - by 90 basis points compared with the first quarter of 2013 - was mainly driven by benefits from economy of scale and by positive developments in the gross margin on high volume systems. Group consolidated net income for the period was EUR 4.4 million and earnings per share was EUR 0.37. This corresponds to year-on-year growth of 20.8% and 19.4% respectively. These figures have been adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the employment contract for a retired member of the Board of Management. Including this exceptional item, unadjusted EBIT amounted to EUR 4.4 million, consolidated net income was EUR 3.7 million and earnings per share was EUR 0.31.

Development in personnel
Including temporary employees, the STRATEC Group had a total of 546 employees as of March 31, 2014 (March 31, 2013: 541). The total number of employees thus remained unchanged compared with December 31, 2013.

Dividend proposal
Given STRATEC's positive business performance in 2013, a strong first quarter of 2014, and ongoing strong prospects for the future, the Board of Management and Supervisory Board of STRATEC Biomedical AG are proposing the distribution of a dividend of EUR 0.60 per share with dividend rights for approval by the Annual General Meeting on June 18, 2014 (distribution in previous year: EUR 0.56). Subject to approval by the Annual General Meeting, shareholders can expect to benefit from the tenth dividend increase in succession since payment of the first dividend in 2004.

The Annual General Meeting of STRATEC Biomedical AG will be held in Pforzheim on June 18, 2014. The invitation to the Annual General Meeting will be forwarded to STRATEC shareholders via their depository banks in good time ahead of the Annual General Meeting.

Project development, outlook and financial forecast
In the current year, STRATEC is focusing on achieving further major development milestones, further upcoming market launches, and finalizing negotiations for new development and production contracts. Furthermore, the expansion in the company's production and development capacities is set to play a key role in 2014. One example here is the planned construction of a proprietary development complex at STRATEC's location in Romania.

For 2014, STRATEC continues to expect substantial sales growth compared with the 2013 financial year, accompanied by a slight increase in the EBIT margin. The medium-term financial forecast for the years through to 2017 provides for average annual sales growth of 8% to 12% based on the volume of sales generated in the 2013 financial year.

The service parts business division has continued to develop stably.

No effects have yet been observed in connection with current developments in the Ukraine crisis and, to date, our partners have reported a very low level impact.

Conversion in accounting methods
The business results presented here represent consolidated figures following the amendment to accounting methods pursuant to IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors). The comparative figures for the previous year have been adjusted accordingly. The amendments to accounting methods are explained in detail in the 2013 Annual Report from Page 48 onwards.

Among other factors, these voluntary amendments also involved converting the accounting method used to recognize projects, a measure resulting from a recommendation made by the German Financial Reporting Enforcement Panel (DPR) and whose implementation was completed at the end of 2013.

Interim Report as of March 31, 2014
Further details can be found in our Interim Report as of March 31, 2014, which has been published today on the company's homepage at

STRATEC Biomedical AG ( designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.

Further information can be obtained from:
STRATEC Biomedical AG
André Loy, Investor Relations
Gewerbestr. 37, 75217 Birkenfeld
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999

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