STRATEC accelerates growth in first half of 2014



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

23.07.2014 / 07:35


STRATEC accelerates growth in first half of 2014

- Sales of EUR 69.1 million in 6M/2014 (+14.9%; 6M/2013: EUR 60.1 million)
- EBIT of EUR 11.2 million** in 6M/2014 (+36.0%; 6M/2013: EUR 8.3 million)
- EBIT margin of 16.3%** in 6M/2014 (+260 base points; 6M/2013: 13.7%)
- Consolidated net income of EUR 9.6 million** in 6M/2014 (+47.3%; 6M/2013: EUR 6.5 million)
- Earnings per share of EUR 0.82** in 6M/2014 (+46.4%; 6M/2013: EUR 0.56)


Birkenfeld, July 23, 2014

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its results for the period from January 1, 2014 to June 30, 2014 upon the publication of its Interim Report as of June 30, 2014.

Key figures (EUR 000s)              01.01.- 06.30.2014          01.01.- 06.30.2013*              Change
Sales 69,050 60,071 +14.9%
EBIT 11,232** 8,257 +36.0%
EBIT margin (%) 16.3** 13.7 +260 BPS
Consolidated net income 9,635** 6,543 +47.3%
Earnings per share (EUR) 0.82** 0.56 +46.4%

* 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 recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. Unadjusted EBIT amounts to EUR 10.3 million, the corresponding EBIT margin amounts to 14.9%, consolidated net income to EUR 8.9 million and earnings per share to EUR 0.76. The effective amount of the liability due may differ at the time of payment.

 

Financial performance
STRATEC generated sales growth of 14.9% in the first six months of the 2014 financial year. This sales performance, which remains slightly ahead of budget, was chiefly driven by growth with established systems. An increasing share of growth was also attributable to systems recently launched onto the market by our customers. The figures include a small positive financial effect, one set also to continue over the remaining quarters of the current financial year, resulting from the termination of a development and supply agreement announced in July 2013. Based on current planning, this monetary item will increase the EBIT margin for the 2014 financial year as a whole by around 30 basis points.

Part of the substantial increase in second-quarter sales in percentage terms is also due to the basis effect in regards to the backlog in deliveries due to flood damages in the second quarter of 2013.

EBIT for the first six months of 2014 amounted to EUR 11.2 million, corresponding to an EBIT margin of 16.3%. This further improvement in the EBIT margin - by 260 base points compared with the first six months of 2013 - was mainly driven by the positive development in the gross margin for high-volume systems and by growth in the volume of such systems sold. The margin also benefited from the ongoing slightly positive development in turnover with service parts. At EUR 9.6 million, consolidated net income was up 47.3%, and thus substantially ahead of the previous year's figure of EUR 6.5 million. The company generated earnings per share of EUR 0.82 (+46.4%). These figures have been adjusted to exclude a one-off item resulting from recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. On an unadjusted basis, EBIT amounted to EUR 10.3 million, consolidated net income to EUR 8.9 million, and earnings per share to EUR 0.76.

Development in personnel
Including temporary employees, the STRATEC Group's total workforce of 546 employees as of June 30, 2014 remained unchanged compared with March 31, 2014 and December 31, 2013.

Project development, outlook and financial forecast
In the current year, STRATEC is focusing on achieving further major development milestones, additional 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 where, depending on the relevant permits being issued, construction work should begin before the end of the current financial year.

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 division continued to develop stably at a slightly higher level than in 2013.

The company has not yet witnessed any implications from current events in connection with the Ukraine crisis and sanctions against Russia. Our partners, who generally market our systems with their own reagents, have currently reported only a very low level of impact.

Annual General Meeting
At the Annual General Meeting held on June 18, 2014, the company's shareholders approved all of the agenda items. Among the other items, shareholders approved the distribution of a dividend of EUR 0.60 per share for the 2013 financial year (previous year: EUR 0.56). The dividend was distributed to shareholders via their depository banks from June 20, 2014 onwards and amounted to EUR 7.1 million in total. Since payment of the first dividend in 2004, STRATEC has thus increased its dividend for the tenth year in succession.

Conversion in accounting methods
The business results presented here represent consolidated figures following the previously announced 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 June 30, 2014
Further details can be found in our Interim Report as of June 30, 2014, which has been published today on the company's homepage at www.stratec.com/financial_reports.

About STRATEC
STRATEC Biomedical AG (www.stratec.com) 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, Corporate Communications
Gewerbestr. 37, 75217 Birkenfeld
Germany
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999
ir@stratec.com
www.stratec.com



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