Biotest AG: Biotest increases adjusted EBIT by 12% to EUR 29.9 million
Biotest AG, DE0005227235
Biotest increases adjusted EBIT by 12% to EUR 29.9 million
- Earnings after taxes reaches EUR 2.0 million
- Expansion project Biotest Next Level proceeding according to plan
- Long-term financing of the Biotest Group
Dreieich, 14 August 2019. In the first half of the 2019 financial year, the Biotest Group recorded sales revenues of EUR 195.1 million (same period of the previous year: EUR 200.7 million). On a half-year basis, sales are only EUR 5.6 million or 2.8 % below the figure for the same period in the last year. Part of the decline in sales recorded in the first quarter of 2019 has thus already been made up as planned.
EBIT adjusted for expenses for the Biotest Next Level project of EUR 34.5 million (same period of the previous year: EUR 23.7 million) and for monoclonal antibodies (EUR 0.9 million) amounted to EUR 29.9 million in the first half of 2019 after EUR 26.8 million in the same period in the previous year.
EBIT at Group level amounted to EUR -5.5 million in the first six months of fiscal year 2019 (same period of the previous year: EUR 0.6 million). The weaker EBIT in the Therapy segment compared to the same period of the previous year is primarily the result of the increased costs of sales caused by the increase in costs for the ramp-up phase of the Biotest Next Level project. In addition, a 21.1% increase in research and development costs had an impact on EBIT. The increase is due to the production of clinical material for the development projects for the new products IgG Next Generation and Trimodulin.
In the first half of 2019, the financial result from continuing operations amounted to EUR 8.0 million after EUR -10.7 million in the same period of the previous year. The main reason for the significant improvement were the value adjustments on financial instruments measured at fair value.
For the continuing operations of the Biotest Group, this results in earnings before taxes (EBT) of EUR 2.5 million compared with EUR -10.1 million in the same period of the previous year.
In April 2019, Biotest received the operating permit for the ninth plasmapheresis centre in Hungary from the Hungarian health authority OTH. The centre is located in the capital of Budapest. Thus, the Group's own network of plasma collection centres in Europe has been expanded to 21 centres to secure the long-term supply of plasma.
In the first half of the year, good progress was made in the expansion project Biotest Next Level at the Dreieich site. The qualification of the clean rooms and media systems is in progress so that they can be approved by the Darmstadt Regional Council in November 2019. At the same time, the commissioning of the processing plants was started and their approval by the Darmstadt Regional Council is expected for 2020.
On June 24, 2019, Biotest signed a financing agreement with a term of 5 years for a volume of EUR 240 million. This will finance the further steps towards the commissioning the Biotest Next Level facilities over the next few years. The closing of the financing agreement took place on 2 July 2019.
For the 2019 financial year, the Management Board expects sales growth in the mid-single-digit percentage range. Earnings in 2019 will be influenced by various factors. In addition to the expected expenses of EUR 80 to 90 million from the Biotest Next Level expansion project, including the associated research and development costs, the tense situation in the crisis regions, particularly in the Middle East, could have an impact. In addition, a partner is being sought for advanced development projects. Based on the aforementioned factors, the Management Board expects EBIT from continuing operations to be between EUR -5 million and EUR +5 million if partnering can be successfully concluded in 2019. As a result, the Executive Board expects a return on capital employed (RoCE) of approximately -2% to +2% and a cash flow from operating activities of approximately EUR-50 million to EUR-60 million for 2019. Without a partnering, EBIT is expected to be between EUR -15 and -35 million, RoCE between -2% and -4% and cash flow from operating activities between EUR -60 and -90 million. The Management Board expects EBIT adjusted for the impact of the Biotest Next Level project on earnings to rise to between EUR75 million and EUR95 million if partnering can be successfully concluded in fiscal 2019.
The partnering efforts are more complex and more time-consuming than expected, so that the possibility of a forecast occurring without partnering cannot be ruled out.
The half-year report can be downloaded from the company's website at https://www.biotest.com/de/en/investor_relations/news_and_publications/publications/quarterly_reports.cfm.
About Biotest Biotest is a provider of plasma proteins and biological drugs. With a value added chain that extends from pre-clinical and clinical development to worldwide sales, Biotest has specialised primarily in the areas of clinical immunology, haematology and intensive medicine. Biotest develops and markets immunoglobulins, coagulation factors and albumin based on human blood plasma. These are used for diseases of the immune and haematopoietic systems. In addition, Biotest develops monoclonal antibodies in certain cancer indications and in systemic lupus erythematodes, an autoimmune disease, which are produced by recombinant technologies. Biotest has more than 1,700 employees worldwide. The ordinary and preference shares of Biotest AG are listed in the Prime Standard on the German stock exchange.IR contact Dr Monika Buttkereit Phone: +49-6103-801-4406 Mail: email@example.com
PR contact Dirk Neumüller Phone: +49-6103-801-269 Mail: firstname.lastname@example.org Biotest AG, Landsteinerstr. 5, 63303 Dreieich, Germany, www.biotest.com
Ordinary shares: securities' ID No. 522720; ISIN DE0005227201 Preference shares: securities' ID No. 522723; ISIN DE0005227235 Listing: Frankfurt (Prime Standard) Open Market: Berlin, Düsseldorf, Hamburg/ Hanover, Munich, Stuttgart, Tradegate
Disclaimer This document contains forward-looking statements on overall economic development as well as on the business, earnings, financial and assets position of Biotest AG and its subsidiaries. These statements are based on current plans, estimates, forecasts and expectations of the company and are thus subject to risks and elements of uncertainty that could result in significant deviation of actual developments from expected developments. The forward-looking statements are only valid at the time of publication. Biotest does not intend to update the forward-looking statements and assumes no obligation to do so.
14.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Biotest AG Landsteinerstraße 5 63303 Dreieich
Germany Phone: 0 61 03 - 8 01-0 Fax: 0 61 03 - 8 01-150 E-mail: email@example.com Internet: http://www.biotest.de ISIN: DE0005227235, DE0005227201 WKN: 522723, 522720 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 856857 End of News DGAP News Service