STRATEC continues growth in 2017


DGAP-News: STRATEC Biomedical AG / Key word(s): Quarterly / Interim Statement/Quarter Results

04.05.2017 / 07:35
The issuer is solely responsible for the content of this announcement.


STRATEC continues growth in 2017

- Sales of EUR 49.5 million in Q1/2017 (+58.6%; Q1/2016: EUR 31.2 million)
- Organic sales growth of 21.1%
- Adjusted EBIT margin of 13.9% in Q1/2017 (Q1/2016: 14.5%)
- Further workforce growth due to strong development activities
- Presentation of new STRATEC platforms planned at AACC 2017

Birkenfeld, May 4, 2017

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard) today announced its financial results for the period from January 1, 2017 through to March 31, 2017 with the publication of its Quarterly Statement Q1|2017.


Major key figures

in EUR thousand 01.01.- 03.31.2017 01.01.- 03.31.2016 Change
Sales 49,510 31,218 +58.6%
EBITDA(1) 8,812 5,703 +54.5%
EBITDA margin (%)(1) 17.8 18.3 -50 bps
EBIT(2) 6,870 4,530 +51.7%
EBIT margin (%)(2) 13.9 14.5 -60 bps
Consolidated net income(2) 5,369 3,424 +56.8%
Earnings per share (EUR)(2) 0.45 0.29 +55.2%

bps = basis points
(1) 2017 figure adjusted to exclude expenses resulting from transaction activities and related reorganization expenses
(2) 2017 figure additionally adjusted to exclude purchase price allocation-related amortization, financing expenses and tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables
 

Business performance
Sales for the first quarter of 2017 increased by 58.6% from EUR 31.2 million in the previous year to EUR 49.5 million. The two subsidiaries acquired in the 2016 financial year, namely Diatron and STRATEC Consumables, were not yet part of the STRATEC Group in the previous year's quarter. The organization of business units within the STRATEC Group was adjusted in the course of the acquisitions and is not entirely consistent with the previous year's structure. A like-for-like comparison of the sales performance based on the company's structure in the previous year shows that organic sales rose by 21.1% to EUR 37.8 million. This growth was driven in particular by development services and by an increase in the number of systems delivered to what are STRATEC's largest customers in terms of sales.

The Group generated adjusted EBIT of EUR 6.9 million in the first quarter of 2017. The adjusted EBIT margin came to 13.9%, as against 14.5% in the equivalent period in the previous year. This temporary reduction is particularly attributable to the high share of overall sales due to lower-margin development services and the dilution in the margin due to the new subsidiaries, as well as to a compensation component included under personnel expenses for stock appreciation rights, which took material effect for the first time in the first quarter.

This resulted in consolidated net income of EUR 5.4 million (+56.8%; previous year: EUR 3.4 million). Earnings per share amounted to EUR 0.45 (+55.2%, previous year: EUR 0.29). These earnings figures have been adjusted to exclude purchase price allocation-related amortization resulting from the acquisitions of Diatron and STRATEC Consumables and one-off items resulting from transaction activities and associated restructuring expenses.

Development in personnel
Including personnel hired from temporary employment agencies and trainees, the STRATEC Group had a total of 1,001 employees as of March 31, 2017. This corresponds to an increase of 68.2 % compared with the previous year's reporting date. Of the total workforce as of March 31, 2017, 368 employees are attributable to the new subsidiaries.

To deal with large numbers of development projects, STRATEC continues to seek qualified personnel and expects to report rising employee totals in the quarters ahead, as well.

Projects and other developments
STRATEC is currently in an advanced stage of negotiations for several development and supply agreements. Furthermore, several market launches are being prepared for partners in the coming quarters. Given the measures already taken to extend capacities within the Group, STRATEC is prepared for this growth.

The STRATEC platforms in development are already the object of specific negotiations with partners with regard to further development projects and resultant cooperations. The company plans to present initial joint system solutions at the AACC fair to be held in San Diego, US, in August. STRATEC sees these projects as providing an additional basis for its future growth and further diversification.

The acquisitions of the new companies have already impacted positively on the performance of the STRATEC Group in the current financial year, especially in the form of project negotiations and contract agreements.

STRATEC will continue to focus in the current year on achieving major development milestones and market launches.

Financial forecast
An update to the financial forecast is expected to be released upon the publication of the Half-yearly Financial Report on July 25, 2017. Until then, the existing forecast remains valid.

2017 Annual General Meeting
At their meeting on April 11, 2017, the Board of Management and Supervisory Board of STRATEC Biomedical AG decided to propose the payment of a dividend of EUR 0.77 per share for the 2016 financial year for approval by the Annual General Meeting on June 14, 2017 (previous year: EUR 0.75 per share). Based on the current total of 11,854,305 shares with dividend entitlement, the proposal corresponds to a 2.7% increase in the distribution total to EUR 9.1 million (previous year: EUR 8.9 million). STRATEC has a continuity-based dividend policy. If approved, this year's dividend would be the thirteenth consecutive increase in the distribution to shareholders since dividends were first paid in 2004.

Quarterly Statement
The Quarterly Statement Q1|2017 including consolidated balance sheet and consolidated statement of comprehensive income can be found as a download on the company's website at www.stratec.com/financial_reports.

Conference call and audio webcast
To comment on the publication of our quarterly results, we will be holding a conference call in English today, Thursday, May 4, 2017, at 2.00 p.m. (CEST).

The access information (telephone number, password + individual PIN) will be provided following brief registration at the following link: www.stratec.com/registration

The call may also be followed as an audio webcast at www.stratec.com/audiowebcast20170504 (brief registration required). Please note that it is not possible to submit any questions via the audio webcast.

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. Furthermore, the company offers sample preparation solutions, integrated laboratory software, and complex consumables for diagnostic and medical applications. STRATEC covers the entire value chain - from development to design and production through to quality assurance.

The partners market the systems, software and consumables, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. STRATEC develops its products on the basis of its own patented technologies.

Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard segment of the Frankfurt 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



04.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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