DGAP-News: STRATEC Biomedical AG / Key word(s): Quarterly / Interim Statement/Forecast
STRATEC reports first quarter 2018 results and reiterates financial forecast
Birkenfeld, May 15, 2018
STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard) today announced its financial results and major events for the period from January 1, 2018 through to March 31, 2018 with the publication of its Quarterly Statement Q1|2018.
Major key figures (1) (2)
bps = basis points
(1) For comparison purposes, adjusted figures exclude amortizations resulting from purchase price allocations in the context of acquisitions, associated reorganization expenses, as well as other one-off items
(2) Excluding potential effects of first-time adoption of IFRS 15
Adjusted EBIT amounted to EUR 4.3 million in Q1/2018, compared to EUR 6.9 million in the previous year's period. This corresponds to an adjusted EBIT margin decline of 360 basis points to 10.3% from 13.9% in Q1/2017. The year-on-year reduction in the company's profitability was due in particular to the lower volume of sales and resultant absence of benefits of scale. The significant expansion in the company's workforce, which is directly connected to the increased volume of development work currently underway and the expected future growth, should also be noted in this respect. The positive impact of a further increased share of sales generated with service parts and consumables was more than offset by the above factors.
Given the lower level of operating profitability, adjusted consolidated net income also decreased, in this case by 34.2% to EUR 3.5 million, versus EUR 5.4 million in the previous year. The adjusted tax rate for the first quarter amounted to 17.8% (previous year: 21.2%). Adjusted basic earnings per share came to EUR 0.30, compared with EUR 0.45 in Q1/2017.
The figures reported for Q1/2018 do not yet account for any potential effects resulting from the first-time adoption of IFRS 15.
For comparison purposes, adjusted figures exclude amortizations resulting from purchase price allocations in the context of acquisitions, associated reorganization expenses, as well as other one-off items.
The reconciliation of the adjusted figures with the figures reported in the consolidated statement of comprehensive income is presented in the Quarterly Statement Q1|2018.
Development in personnel
To manage its large numbers of development projects, STRATEC continues to seek qualified personnel and expects to report rising employee totals in the quarters ahead.
Projects and other developments
Furthermore, STRATEC is currently negotiating numerous additional development and supply agreements with existing and potential new partners. To prepare for the further growth expected to result from these agreements, the company decided in 2017 to convert and significantly extend the premises at its Birkenfeld location. The relevant planning is currently in its final stages and construction work is expected to begin before the end of the first half of 2018. The first stage of construction is scheduled for completion in mid-2019.
To support the company's growth strategy, one major focus in 2018 will be on implementing a uniform group-wide ERP system. This will considerably simplify cooperation between locations and enable us to structure our processes more efficiently. We implemented the system at our locations in Austria and Hungary and thus completed the first stage of the rollout in January 2018 already. Among other measures, we are currently preparing the implementation at our headquarters in Birkenfeld.
This forecast for 2018 does not yet account for any implications resulting from first-time adoption of IFRS 15, as these had not yet been conclusively assessed upon publication of this report. Based on initial, still preliminary assessments, STRATEC expects IFRS 15 requirements to have only a moderate impact on its earnings, financial, and asset position.
Given upcoming market launches and the significant progress being made in numerous project negotiations, STRATEC continues to expect to generate average annual organic sales growth (CAGR) in the high single-digit or low double-digit percentage range in the years ahead. The positive development anticipated in profitability thanks to economies of scale in connection with recent acquisitions will be tempered by temporary increases in investing and developing activities for planned growth with selected customer projects. Overall, STRATEC expects the EBIT margin to remain broadly consistent with recent levels.
Due to the scheduled conversion and extension measures at its Birkenfeld location, the company's investments in 2018 are expected to slightly exceed the previous year's figure.
2018 Annual General Meeting
The Board of Management and Supervisory Board also decided to propose to the Annual General Meeting that STRATEC Biomedical AG should be converted into a European Company (Societas Europaea, SE) with the name STRATEC SE. The Board of Management and Supervisory Board believe that this planned change of legal form reflects STRATEC's own understanding of itself as a company with an international outlook.
Conference call and audio webcast
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/audiowebcast20180515 (brief registration required). Please note that it is not possible to submit any questions via the audio webcast.
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:
|Company:||STRATEC Biomedical AG|
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|