Interim report for the period January – June 2014


Second quarter, April – June 2014

  · Group net sales in the second quarter 2014 amounted to 120.4 MSEK (116.3),
an increase by 3.5 percent. At comparable exchange rates sales increased by 3.3
percent compared to the corresponding quarter 2013.
  · Operating profit for the quarter amounted to 13.5 MSEK (12.1).
  · Result after tax for the period amounted to 15.4 MSEK (12.9).
  · Earnings per share amounted to 0.24 SEK (0.19).
  · The cash flow from operating activities amounted to 24.6 MSEK (7.1).
  · Net cash at June 30 amounted to 61.8 MSEK, compared to 87.4 MSEK at March
31.
  · Dividends to shareholders were paid to the amount of 38.8 MSEK (34.9).
  · No own shares have been acquired under the repurchasing program decided at
the 2014 Annual General Meeting. The previous holding of a total of 5,146, 883
own shares acquired under the previous repurchasing program have been cancelled
according to the resolution of the 2014 AGM.

Six months, January – June 2014


  · Group net sales in the first six months 2014 increased by 6.6 percent to
234.1 MSEK (219.6). Also at comparable exchange rates sales increased by 6.6
percent.
  · Operating profit for the six month period amounted to 23.0 MSEK (18.1).
  · Result after tax amounted to 23.5 MSEK (16.0).
  · Earnings per share amounted to 0.36 SEK (0.23).
  · The cash flow from operating activities amounted to 35.4 MSEK (22.3).
  · Net cash at June 30 amounted to 61.8 MSEK, compared to 85.0 MSEK at December
31, 2013.

Comments by CEO Torben Jörgensen

After a strong first quarter I am happy to see that Biotage continues to grow
organically. The growth in the second quarter was 3.5 percent. Compared to last
year, the growth for the six month period amounts to 6.6 percent at comparable
exchange rates. Thus we have come closer to the long-term target of 8 percent
average annual growth, an improvement largely attributable to our strengthened
product portfolio.

Operating profit (EBIT) for the quarter improved by 12 percent to 13.5 MSEK. For
the first six months of the year it amounts to 23.3 MSEK, a 27 percent
improvement. We practically met our 10 percent EBIT margin target in the six
month period and in the quarter we exceeded it by 1.3 percent.

In geographical terms America, China and Japan accounted for the greatest share
of the growth during the first six months of the year. Sales in Europe remained
largely unchanged. Here we did not manage to follow up the strong first quarter
with an equally positive development in the second quarter, among other things
due to delays in the sub-supplier chain for our peptide systems. These orders we
bring with us into the next quarter. Also Japan had a stronger first quarter
than the second one, largely because many customers placed their orders earlier
due to the raised VAT coming into effect on April 1.

Our distributor sales have developed slowly in the quarter as well as in the six
month period. In order to enable closer collaboration with distributors we are
now dividing indirect sales in the rest of the world into EMEA (Europe, Middle
East and Africa) and APAC (Asia Pacific), with separate heads responsible for
the respective areas.

Our single biggest product area, purification in organic chemistry, continues to
develop well. Also the sales of our Sample Prep products in analytical chemistry
are growing. Consumables sales in analytical chemistry is a strongly
contributing cause to the healthy development in the US. We continue to develop
the American and European markets through close collaborations with customers
regarding method development for the use of our analytical consumables in pain
control and clinical testing, among other things. During the quarter we closed
several important supply agreements in this area. We are currently also
performing beta tests of our automated sample prep system Extrahera. This system
is planned for launch later this year and has the potential to further improve
the sales of our consumables in analytical chemistry. In the product area
Industrial Resins we have closed yet another agreement with a new customer,
aiming at removing an unwanted substance from a food product.

The distribution of sales between systems (43 percent) and consumables and
service (57 percent) remained unchanged from the preceding quarter. Our goal is
that aftermarket products shall constitute at least 60 percent of the sales, as
they generally make a higher contribution to the gross margin. The relatively
high share of system sales thus affects the profitability negatively. The
stronger British pound also affected the profitability negatively for our
production in Cardiff, Wales. The gross margin amounted to 54.4 percent for the
quarter and 55.1 percent on a rolling 12 month basis.


For further information, please contact:
Torben Jörgensen, President and CEO, phone: +46 707 49 05 84
Erika Söderberg Johnson, CFO, phone: +46 707 20 48 20

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 08.30 on August 14, 2014.


About Biotage
Biotage offers efficient separation technologies from analysis to industrial
scale and high quality solutions for analytical chemistry from research to
commercial analysis laboratories. Biotage’s products are used by government
authorities, academic institutions, pharmaceutical and food companies, among
others. The company is headquartered in Uppsala and has offices in the US, UK,
China and Japan. Biotage has approx. 290 employees and had sales of 445 MSEK in
2013. Biotage is listed on the NASDAQ OMX Stockholm stock exchange. Website:
www.biotage.com

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