STRATEC reports on first half of 2015

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

2015-07-23 / 07:33

STRATEC reports on first half of 2015

- Sales of EUR 70.0 million in 6M/2015 (+1.4%; 6M/2014: EUR 69.1 million)
- EBIT of EUR 12.0 million in 6M/2015 (+6.7%; 6M/2014: EUR 11.2 million*)
- EBIT margin of 17.1% in 6M/2015 (+80 basis points; 6M/2014: 16.3%*)
- Earnings per share of EUR 0.83 in 6M/2015 (+1.2%; 6M/2014: EUR 0.82*)
- Ongoing positive development expected for financial year as a whole

Birkenfeld, July 23, 2015

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its results for the period from January 1, 2015 to June 30, 2015 upon the publication of its Interim Report as of June 30, 2015.

Key figures (EUR 000s) 01.01.- 06.30.2015 01.01.- 06.30.2014 Change
Sales 70,012 69,050 +1.4%
EBIT 11,986 11,232* +6.7%
EBIT margin (%) 17.1 16.3* +80 bps
Consolidated net income 9,807 9,635* +1.8%
Earnings per share (EUR) 0.83 0.82* +1.2%

bps = basis points

* 2014 figure adjusted to exclude a one-off negative item resulting from the 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 for the first half of 2014 amounted to EUR 10.3 million; the corresponding EBIT margin amounted to 14.9%, consolidated net income to EUR 8.9 million and earnings per share to EUR 0.76. The actual amount of the aforementioned expense item may differ at the time of payment from the amounts presented here.

Financial performance
The slight increase in sales, with growth of 1.4% from EUR 69.1 million to EUR 70.0 million, was primarily attributable to the stable performance of the analyzer system supply business and the positive developments in the business with service parts. This product mix helped drive an improvement in profitability, with the EBIT margin at 17.1%, up from 16.3% in the previous year (unadjusted 2014 figure: 14.9%). Year-on-year, EBIT grew by 6.7% to EUR 12.0 million, consolidated net income increased by 1.8% to EUR 9.8 million, and earnings per share improved by 1.2% to EUR 0.83. The tax rate for the first half of 2015 amounted to 19.2%.

Free cash flow in the first half declined to EUR 9.4 million due to reporting date-related increases in customer receivables and a higher tax expenses. Cash and cash equivalents rose to EUR 49.1 million at the reporting date on June 30, 2015. The equity ratio amounts to 78.4%.

Annual General Meeting and dividend proposal
Shareholders participating in the Annual General Meeting on May 22, 2015 approved all of the proposals submitted by the management. Shareholders also approved the eleventh consecutive increase in the dividend, in this case to EUR 0.70 per share with dividend entitlement.

Development in personnel
The total number of employees at the STRATEC Group, including personnel hired from temporary employment agencies and trainees, rose year-on-year by 2.9% from 546 to 562 as of June 30, 2015. Given ongoing demand from our partners for our research and development services and for the supply of analyzer systems, we continue to look for well-qualified personnel, especially in the development division.

Projects and other developments
STRATEC is focusing in the current year on achieving further key development milestones for future market launches by our partners, and finalizing negotiations for new development and production contracts. One further focus is on developing proprietary platform solutions, which should contribute to the company's further growth from 2017 onwards.

The expansion in production and development capacities is set to play a major role in the company's future growth strategy. The move into the new buildings at the Romanian location and in Switzerland is scheduled to take place in the first half of 2016.

Financial forecast remains valid
Following the positive sales performance in the first six months of the current financial year, we also expect to generate slight sales growth in the second half of 2015, accompanied by an EBIT margin at the current level.

The targets set out in our financial forecast first communicated in July 2013, which provide for average annual sales growth of eight to twelve percent through to 2017 accompanied by increasing profitability, remain valid. We expect figures to fall below or exceed this range in individual years.

As well as pursuing the opportunities offered by organic growth, STRATEC is increasingly reviewing external opportunities which would enable the company to generate faster growth in key areas or access new niche markets. All activities serve to broaden the share of the value chain we can offer to our customers. One key priority is to avoid entering into any competitive situation with existing or potential partners.

Interim report as of June 30, 2015
Further details can be found in our Interim Report as of June 30, 2015, 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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