DGAP-News: STRATEC Biomedical AG / Key word(s): Final Results/Forecast
STRATEC reports significant growth in sales and earnings in 2017
Birkenfeld, April 19, 2018
STRATEC Biomedical AG, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard) is today announcing the final audited (unqualified audit opinion) figures for the STRATEC Group in accordance with IFRS for the fiscal year ended on December 31, 2017, together with the publication of its 2017 annual report.
bps = basis points
Following the previous year's record sales levels, recurring sales from service parts and consumables increased again by 28.2% to EUR 68.7 million (previous year: EUR 53.6 million), and now account for 32.8% (previous year: 29.0%) of total sales. In particular, this growth was driven by a continuously increased base of systems installed in recent years and the greater average system complexity. Sales from development and services also rose significantly to EUR 37.5 million (previous year: EUR 28.4 million) against the backdrop of a full development pipeline. By contrast, systems sales were up only slightly to EUR 102.2 million compared with EUR 101.7 million in the previous year.
Adjusted EBIT grew by 10.1% year-on-year to EUR 35.5 million (previous year: EUR 32.3 million), resulting in an EBIT margin of 16.9% versus 17.4% in the previous year. Positive margin effects, like the strong service parts and consumables business, were offset by increased costs for additional development capacity. Increased sales from development and services also affected the margin negatively.
Adjusted consolidated earnings rose by 10.4% to EUR 27.9 million (previous year: EUR 25.3 million). Adjusted earnings per share climbed by 9.8% to EUR 2.35 (previous year: EUR 2.14). IFRS earnings per share were up 30.9% at EUR 2.16 (previous year: EUR 1.65).
Earnings figures were adjusted for purposes of comparison. Specifically, they were adjusted for amortization from purchase price allocation for acquisitions, related integration expenses, income from securities and other extraordinary effects. A statement showing the reconciliation of the adjusted figures to IFRS results can be found in the 2017 annual report published today.
STRATEC expects an adjusted EBIT margin for fiscal 2018 in line with the previous year's figure of around 17%.
This forecast for 2018 does not include the effects of the first-time adoption of IFRS 15, as these had not yet been conclusively assessed as at the time of reporting. Based on initial, still preliminary assessments, STRATEC expects IFRS 15 requirements to have 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.
Investment in the business in 2018 is expected to be slightly higher than in the previous year due to the planned conversion and expansion work at the Birkenfeld location.
Dividend proposal and planned transformation into a European company
Subject to the approval of the Annual General Meeting, shareholders can therefore look forward to an increased dividend for the fourteenth time in a row since dividend payments began in 2004. In this way, STRATEC hopes to maintain its continuity-oriented dividend policy. As STRATEC is still focused on internal and external growth opportunities, this guideline may be deviated from at times. Such opportunities can arise from major acquisitions or the necessity of potential pre-financing for major projects.
The Management Board and the Supervisory Board have also resolved to propose the transformation of STRATEC Biomedical AG into a European company (Societas Europaea, SE), known as STRATEC SE, at the Annual General Meeting. In the opinion of the Management Board and the Supervisory Board, the planned change of legal form is in keeping with STRATEC's self-image as an internationally oriented company.
Development in personnel and capacity expansions
The conversion and extension of the buildings at the Birkenfeld location was resolved in 2017 in order to keep pace with this expected further growth. Planning is currently in the final phase. Construction work is expected to begin in spring 2018, with completion scheduled for the end of 2019.
Projects and other development
STRATEC entered into further development agreements with leading global diagnostics companies in 2017, and is conducting promising negotiations for a large number of other projects.
At an operational level, 2018 will focus on the implementation of a uniform Group-wide ERP system that will greatly simplify cooperation across all locations and make processes more efficient. The first phase of the roll-out was already completed in January 2018 with the implementation of the system at our locations in Austria and Hungary. Preparations are now underway for implementation at our head office in Birkenfeld.
2017 annual report
The Annual General Meeting of STRATEC Biomedical AG will be held in Pforzheim on May 30, 2018. The invitation to the Annual General Meeting will be sent to STRATEC's shareholders in good time before the Annual General Meeting.
Conference call and audio webcast
Access data (telephone number, password + individual PIN) will be available following a quick registration process at the following link: www.stratec.com/registration
The conference call can also be streamed as an audio webcast at www.stratec.com/audiowebcast20180419 (registration required). Please note that questions cannot be asked via audio webcast. The slideshow can also be watched/downloaded using this link.
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 is available 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|