Revenio Group Corporation, Stock Exchange Release, August 10, 2015 at 9:00
Revenio Group Corporation Interim Report, January 1-June 30, 2015
Revenio Group Corporation is adopting the publication procedure enabled by the Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure obligation on issuers) and is publishing its Interim Report for January-June 2015 as an appendix to this stock exchange release. This stock exchange release is a summary of the Revenio Group Corporation's Interim Report for January-June 2015. The Interim Report can be read in full in the PDF appendix to this release. The Interim Report is also available on Revenio's website: www.revenio.fi.
Major growth in net sales and operating profit driven by the US market, company improves financial guidance
April-June 2015 in brief, continuing Group functions:
· Growth stronger than expected, the company improves its Financial Guidance for the fiscal year
· Net sales were EUR 4.9 (3.6) million, an increase of 36.8%
· The operating result was EUR 1.5 million (0.9), a rise of 71.8%
· Diluted earnings per share were EUR 0.15 (0.10) and undiluted earnings per share were EUR 0.14 (0.10)
· Non core businesses divested
· Icare to start distribution partnership with Iridex Corporation in the US
January-June 2015 in brief, continuing Group functions:
· Net sales were EUR 9.5 (7.3) million, an increase of 30.6 %
· The operating result was EUR 2.9 million (2.0), a rise of 46.7 %
· Diluted and undiluted earnings per share were EUR 0.30 (0.22)
· Technology for the screening, diagnosis and monitoring of asthma and skin cancer was licensed in February, and the projects are progressing according to plan
Key figures, continuing functions, MEUR:
| 1-6/2015 | 1-6/2014 | Change-% | |
| Net sales, Group | 9.5 | 7.3 | 30.6 |
| Operating profit, Group | 2.9 | 2.0 | 46.7 |
| Net sales, Health Tech | 9.5 | 7.3 | 30.6 |
| Operating profit, Health Tech | 3.6 | 2.7 | 32.6 |
| Undiluted earnings per share | 0.30 | 0.22 | 36.4 |
| Diluted earnings per share | 0.30 | 0.22 | 36.4 |
| Cash flow from operating activities | 4.0 | 1.1 | 367.00 |
| 30 June 2015 | 30 June 2014 | Change, %-point | |
| Equity ratio-% | 79.0 | 72.6 | 6.4 |
| Gearing-% | -38.6 | -5.7 | 32.9 |
New financial guidance
Revenio changes its financial guidance for 2015 as follows:
For the fiscal year 2015 the Group's net sales and operating profit are estimated to grow significantly compared to previous year.
The growth of net sales in second half of the year is expected to continue to be strong but in percentage terms lower than in the first half of the year.
Investments in new business operations related to health tech, which have an impact on consolidated operating profit and cash flow. No significant investments will be made in 2015.
Earlier financial guidance
The net sales and operating profit of Icare are expected to grow from last year. Investments in new business operations related to health tech, which have an impact on consolidated operating profit and cash flow. No significant investments will be made in 2015.
Olli-Pekka Salovaara, President and CEO, comments on second quarter results:
"Our fantastic second quarter demonstrates the strength of Icare's constantly growing market presence. Certain interpretation issues related to US health care legislation occurred in the second quarter of 2014, which slowed the health care device trade. We have now put these problems firmly behind us and reached our normal sales volume in the United States. The 30.6% growth in net sales and 46.7% growth of operating profit achieved in the first half of 2015 give us a solid foundation for achieving our growth and profitability targets for this year, and for implementing planned development projects with cash flow financing.
The divestment of our last non-core company, which operated in the software business, lets us focus all our resources on health technology and the promotion of our projects in that sector. The screening technology projects for skin cancer and asthma are both proceeding on schedule. It should be noted, however, that we do not expect a commercial impact from these products for a few years yet.
The sales of the Oscare Sono(TM) osteoporosis measurement device are still small in scale, but are developing in the right direction. We have begun consolidating distribution channels and extending them to new geographical areas and initiated cooperation with research institutes, and I believe these measures will increase the sales of Oscare before the year is out.
The partnership agreement with US device manufacturer Iridex and the agreement with Topcon Medical regarding US optician chains provide us with opportunities to significantly expand our distribution coverage in the United States.
The marketing for our Icare HOME tonometer, designed for the self-monitoring of intraocular pressure, is proceeding according to plan. The clinical tests related to the US FDA licence application were completed by the end of the review period. The company is preparing the FDA licence application of HOME equipment and it will be filed as soon as the application is completed."
General statement
This report contains certain statements that are estimates based on the management's best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in general economic conditions.
Revenio Group Corporation
Board of Directors
For further information, please contact:
President & CEO Olli-Pekka Salovaara, tel. +358 40 567 5520
olli-pekka.salovaara@revenio.fi
www.revenio.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
The Revenio Group in brief
Revenio is a Finnish health tech group whose core business is tonometers. The Revenio Health Tech segment comprises the business operations of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy, which specializes in osteoporosis screening and monitoring. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings in health care via preventive measures. Revenio seeks vigorous growth in health technology, both organically and through acquisitions and mergers. Revenio aims at developing even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology lies on the early detection of glaucoma, osteoporosis, skin cancer and asthma, and the monitoring of these during the treatment process.
In 2014, the Revenio Group's net sales totaled MEUR 16.0, with its operating margin for continuing operations standing at 27.5%. Revenio Group Corporation has been listed in NASDAQ OMX Helsinki.
