Interim report for the period January - September 2012
ET | Source:Biotage AB
Third quarter July - September
· Group net sales in the third quarter 2012 increased by 1 percent to 107.1
MSEK (106.6). At comparable exchange rates the sales were at the same level as
the corresponding quarter 2011.
· Operating profit in the quarter amounted to 8.9 MSEK (10.9).
· The result after tax amounted to 3.7 MSEK (11.4).
· Earnings per share amounted to 0.05 SEK (0.15).
· The cash flow from operating activities amounted to 12.2 MSEK (13.7).
· Net cash at September 30 amounted to 157.0 MSEK, compared to 158.3 MSEK at
Nine-month period January – September 2012
· Group net sales in the first nine months 2012 increased by 12 percent to
349.0 MSEK (312.4). At comparable exchange rates sales increased by 7 percent.
· Operating profit in the nine-month period amounted to 30.3 MSEK (15.3).
· The result after tax amounted to 24.7 MSEK (15.3).
· Earnings per share amounted to 0.34 SEK (0.20).
· The cash flow from operating activities amounted to 44.5 MSEK (75.7).
· Net cash at September 30 amounted to 157.0 MSEK, compared to 198.4 MSEK at
December 31 2011.
· In May dividends to the shareholders were paid to the amount of 29.3 MSEK
· At the end of the reported period Biotage owned a total of 411,731 own
shares, which the company had bought within the framework of the repurchasing
program decided at the Annual General Meeting on April 26, 2012.
Comments by CEO Torben Jörgensen
Even though sales in the third quarter did not meet our expectations we have
seen a good development in several of our product areas. It is primarily the
sales of certain instruments that have not developed satisfactorily during the
quarter. However, we expect a better last quarter due to the seasonal variation
traditionally occurring in our line of business.
For a longer period of time we have worked to increase the share of aftermarket
products (consumables and service). In the third quarter almost 60 percent of
the sales came from these products, which is in line with our long-term
An advantageous product mix and continued cost control has meant that we can
report a sound 60 percent gross margin. The result in the quarter was severely
affected by currency effects amounting to a total of no less than -5.7 MSEK,
however. The corresponding currency effect in the third quarter 2011 was +3.8
Biotage continues to show strong growth in consumables for analytical chemistry.
In the US we have for example managed to convert a number of contract
laboratories working with pain management to Biotage’s products. We are also
seeing a continued positive development in purification, where we have launched
a number of new consumables during the last six months. Also the product
offering in organic chemistry has been strengthened during the year. We have
launched both new instruments and consumables products that have shown good
sales results and met with appreciation from our customers. As recently as in
early September we presented a new peptide synthesis instrument, Biotage®
Initiator+ Alstra™, which has been well received in the market. Biotage will
make new product introductions also in 2013 in organic as well as analytical
chemistry, which can be expected to further strengthen our market position.
Our operations in China and Japan continue to develop well. We have good
momentum in both these countries. Historically we have been less successful in
our sales of consumables there. To address the Japanese market and its local
preferences we have launched a product line of consumables in purification
especially adapted to the Japanese market.
In South America we maintain a relatively high level of activity. We are working
for a stronger presence there through a further developed network of
distributors. The South European market has been showing signs of weakness for
some time. The academic sector in particular is affected by withdrawn funding.
In India sales are slow and we are analyzing future opportunities for a better
penetration of this significant market.
In summary I am glad, despite lower sales than expected, that we have met two
important strategic goals in the past quarter, as we reached a gross margin of
60 percent and the share of so-called aftermarket products constituted almost 60
percent of our sales.
For further information, please contact:
Torben Jörgensen, President and CEO, phone:+46 707 49 05 84
Erika Söderberg Johnson, CFO, phone: +46 730 50 80 56
The information in this press release is of the kind that Biotage AB (publ) is
required to make public according to the Financial Instruments Trading Act. The
information was released for publication at 08.00 on October 26, 2012.
Biotage offers solutions, knowledge and experience in the areas of analytical
chemistry and medicinal chemistry. The customers include the world’s largest
pharmaceutical and biotech companies, and leading academic institutes. The
company is headquartered in Uppsala and has offices in the US, UK, China and
Japan. Biotage has approx. 270 employees and had sales of 428.1 MSEK in 2011.
Biotage is listed on the NASDAQ OMX Nordic Stockholm stock exchange. Website:
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