DGAP-News: STRATEC reports consistent growth in first nine months of 2014


DGAP-News: STRATEC Biomedical AG / Key word(s): Quarter
Results/Interim Report
STRATEC reports consistent growth in first nine months of 2014

22.10.2014 / 07:32

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STRATEC reports consistent growth in first nine months of 2014

- Sales of EUR 105.3 million in 9M/2014
  (+15.9%; 9M/2013: EUR 90.8 million)
- EBIT of EUR 17.7 million** in 9M/2014
  (+37.7%; 9M/2013: EUR 12.8 million)
- EBIT margin of 16.8%** in 9M/2014
  (+270 base points; 9M/2013: 14.1%)
- Consolidated net income of EUR 14.6 million** in 9M/2014
  (+43.8%; 9M/2013: EUR 10.2 million)
- Earnings per share of EUR 1.24** in 9M/2014
  (+42.5%; 9M/2013: EUR 0.87)
- Improved EBIT margin expectations


Birkenfeld, October 22, 2014

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard,
TecDAX) today announced its results for the period January 1, 2014 to
September 30, 2014 upon the publication of its Interim Report as of
September 30, 2014.

<pre>
Key figures (EUR 000s)             01.01.-           01.01.-        Changes
                                09.30.2014       09.30.2013*
Sales                              105,278            90,819         +15.9%
EBIT                              17,685**            12,847         +37.7%
EBIT margin (%)                     16.8**              14.1       +270 BPS
Consolidated net income           14,627**            10,173         +43.8%
Earnings per share (EUR)            1.24**              0.87         +42.5%
</pre>


* The accounting methods used in the consolidated financial statements were
amended in line with IAS 8 in the 2013 financial year. Reference is made in
this respect to the information in the Annual Report 2013 in Section A of
the notes to the consolidated financial statements.

** 2014 figure adjusted to exclude a one-off negative item resulting from
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 and a positive non-operating item due to recognition of income
for a development project discontinued in 2013. Unadjusted EBIT amounts to
EUR 17.0 million, the corresponding EBIT margin amounts to 16.2%,
consolidated net income to EUR 14.2 million and earnings per share to EUR
1.20. The actual amount of the aforementioned expense item may differ at
the time of payment from the amounts presented here.


Financial performance

STRATEC sustained the positive performance seen in the first half of the
year in the third quarter of 2014. Sales increased by 15.9% to EUR 105.3
million compared with the first nine months of 2013. Alongside high-volume
established systems and ongoing positive developments in the service parts
business, key growth drivers included sales from newer systems. Sales
growth also benefited from increasing volumes of development work, which
are expected to lead to further positive developments from new market
launches in the coming years.
The improvement in the EBIT margin was driven by an increased share of
sales from service parts, as well as the positive development in the gross
margin for high-volume systems and growth in the volume of such systems
sold. Nine-month EBIT increased to EUR 17.7 million, up 37.7% from EUR 12.8
million in the previous year. This corresponds to an EBIT margin of 16.8%.
Consolidated net income grew by 43.8% to EUR 14.6 million, and earnings per
share increased 42.5% to EUR 1.24.

These earnings figures have been adjusted to exclude a one-off negative
item resulting from 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 and a positive non-operating item due to
recognition of income for a development project discontinued in 2013. On an
adjusted basis, EBIT amounted to EUR 17.0 million, the corresponding EBIT
margin to 16.2%, consolidated net income to EUR 14.2 million and earnings
per share to EUR 1.20.

Due to the expiry of a tax concession, the positive impact of lower taxes
payable on revenues generated in Switzerland will be slightly less marked
from the coming year onwards.


Development in personnel

Including temporary employees, the STRATEC Group had a total of 554
employees as of September 30, 2014 (September 30, 2013: 544).


Project development, outlook and financial forecast

In the current year, STRATEC is focusing on achieving further major
development milestones, additional market launches, and finalizing
negotiations for new development and production contracts.

The recovery in the service parts division has continued. This is due
primarily to a slight recovery in test volumes at diagnostic laboratories
in the US in particular and to initial stocking for newly delivered systems
also.

Furthermore, the expansion in the company's production and development
capacities is set to play a major role in the coming quarters. One example
here is the planned construction of a proprietary development complex at
STRATEC's location in Romania, where construction work is expected to start
at the beginning of 2015. The company also plans to extend production areas
at its Beringen location in Switzerland. This measure, also scheduled for
2015, will boost the STRATEC Group's production capacity by around 20%.

To optimize structures, the key focus at the US location in Newbury Park
going forward will be on developing opto-mechanical components and
associated prototype construction.

Our partners, who generally market our systems together with their own
reagents, have currently reported only a very low level of impact related
to events in connection with the Ukraine crisis and sanctions on Russia. To
date, the only implications are a slight reduction in analyzer system
call-up volumes at one partner.

Based on budgets that account for acceptance volume forecasts from our
customers and market launches expected in the coming years, STRATEC
continues to expect average annual sales growth of 8% to 12% for the years
through to 2017 (based on the volume of sales generated in the 2013
financial year). Growth rates are expected to fluctuate between individual
years. For 2014, STRATEC continues to expect substantial sales growth
compared with the 2013 financial year; accompanied by a significant rise in
its EBIT margin.


Conversion in accounting methods

The business results presented here represent consolidated figures
following the previously announced amendment to accounting methods pursuant
to IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors).
The comparative figures for the previous year have been adjusted
accordingly. The amendments to accounting methods are explained in detail
in the 2013 Annual Report from Page 48 onwards.

Among other factors, these voluntary amendments also involved converting
the accounting method used to recognize projects, a measure resulting from
a recommendation made by the German Financial Reporting Enforcement Panel
(DPR) and whose implementation was completed at the end of 2013.


Interim Report as of September 30, 2014

Further details can be found in our Interim Report as of September 30,
2014, which has been published today on the company's homepage at
www.stratec.com/financial_reports.


About STRATEC

STRATEC Biomedical AG (www.stratec.com) 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, Corporate Communications 
Gewerbestr. 37, 75217 Birkenfeld
Germany
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999
ir@stratec.com
www.stratec.com



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Language:    English                                                
Company:     STRATEC Biomedical AG                                  
             Gewerbestr. 37                                         
             75217 Birkenfeld                                       
             Germany                                                
Phone:       +49 (0)7082 7916 0                                     
Fax:         +49 (0)7082 7916 999                                   
E-mail:      info@stratec.com                                       
Internet:    www.stratec.com                                        
ISIN:        DE0007289001                                           
WKN:         728900                                                 
Indices:     TecDAX                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
 
 
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