Biotest AG: Biotest remains on course for growth
Biotest AG / Half Year Results
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Biotest remains on course for growth
· Clear rise in sales and earnings in the first half of 2007
· Sustained dynamic trend in plasma proteins
· Measure to increase earnings in the Diagnostic segment
· Key milestones achieved in R&D projects
Dreieich, 10 August 2007. The Biotest Group today published its half-year
report as of 30 June 2007. With an increase in sales of 15.5% to EUR 158.4
million (first half of 2006: EUR 137.2 million) and a 27.3% rise in EBIT to
EUR 18.2 million (EUR 14.3 million), the first six months of 2007 have been
very successful. Earnings after tax (EAT) were up 52.5% from EUR 6.1
million to EUR 9.3 million and earnings per share climbed from EUR 0.51 in
the previous year to EUR 0.80.
In the second quarter alone, Biotest generated sales totalling EUR 82.7
million, up 18.6% year-on-year and 9.2% compared with the first three
months of 2007. The pharmaceutical, diagnostic and biotech group expects a
rise in both sales and EBIT of between 12% and 15% for the year as a whole.
As was the case in previous years, the main growth driver in the first half
of 2007 was plasma protein business posted under the Pharmaceutical
segment. Sales here increased by 20.3% from EUR 98.4 million to EUR 118.4
million. Growth was both volume and price driven and was reported across
all product groups. Particularly dynamic was the development recorded in
business with coagulation factors (+47.1%) and polyvalent immunoglobulins,
for which Biotest posted an increase in sales of 18.2% compared with the
same period of the previous year. The latter were especially reflected in
the sustained success of Intratect® in Germany and the UK. Biotest achieved
considerable sales increases in coagulation factors in Russia and Germany,
in particular.
In the Diagnostic segment, business performance continued to vary, with a
very positive trend in microbiological diagnostics and declining sales in
immunological diagnostics. Overall sales for the segment totalled EUR 40.0
million, up 3.1% year-on-year (EUR 38.8 million).
A key factor for the disproportionally high increase in the earnings of the
Biotest Group was that the cost of sales and administrative expenses rose
less sharply than sales, with the cost of sales as a percentage of sales
falling from 48.1% to 46.8%. The distribution expense developed
approximately in line with sales.
Biotest again significantly increased its research and development expense.
A major proportion of the growth was attributable to the projects in the
Biotherapeutic segment. BT-061 is the first of Biotest’s three monoclonal
antibodies to undergo clinical testing. As expected, results from a Phase I
trial have confirmed the good tolerability of the antibody developed in the
leading indications psoriasis and rheumatoid arthritis.
Due to the rise in interest rates and the more intense use of factoring,
the financial result was lower than that of the first half of 2006 (EUR
-3.6 million) at EUR -3.9 million. The improved conditions of the
syndicated loan agreement concluded in the previous year provided for a
positive effect here. The annualised return on capital employed (RoCE)
amounted to 10.5% in the first half of 2007 (previous year: 9.0%).
Despite a rise in working capital, cash flow from operating activities was
up 3.4% year-on-year. Cash flow from investments amounted to EUR 13.8
million (2006: EUR 5.1 million). Significant capital expenditure here
comprised the GMP upgrade of the production facility (GMP = Good
Manufacturing Practice) and the expansion of production capacities in the
Pharmaceutical segment. Further capital expenditure was attributable to
capitalised expenses following the introduction of standard SAP software.
Cash flow from financing activities stood at EUR - 0.6 million, which was
considerably less than in 2006 (EUR - 6.3 million).
As of 30 June 2007, the total assets of the Biotest Group had increased by
9.2% to EUR 395.5 million compared to 31 December 2006. On the assets side,
there was a growth-driven increase in trade receivables and inventories, as
well as a rise in tangible assets through capital expenditure which took
place. On the liabilities side, equity amounted to EUR 184.6 million, up
3.0% compared to the figure as of 31 December 2006. The equity ratio was
46.7% (end of 2006: 49.5%). Trade payables rose in line with business
volume.
In order to improve the earnings situation in the Diagnostic segment,
Biotest drew up a corresponding programme with the support of a renowned
corporate consultancy firm and implementation of the measures has begun.
The programme includes streamlining the immunological diagnostic product
portfolio and concentrating on products in future which comply with the
company’s strategic focus and which are produced in large quantities. In
addition, more flexible team structures and the reorganisation of
production processes should increase efficiency. The majority of
immunological diagnostic activities are to be transferred to a newly
established limited liability company, as the prerequisite for the company
to be able to enter into strategic partnerships.
Biotest created additional jobs in the first half of 2007. The number of
employees (full-time equivalent) rose from 1,149 as of year-end 2006 to
1,204 as of 30 June 2007. As part of the restructuring, around 40 jobs have
been cut in the Diagnostic segment. Biotest will offer the majority of the
employees affected new positions in one of the subsidiaries or in the
rapidly growing Pharmaceutical segment.
For growth for the financial year as a whole, we expect growth to stem
especially from plasma proteins business and microbiological diagnostic
products. Despite a further increase in research and development expense,
the costs of preparing the launch of further products in the US market and
restructuring costs arising in the Diagnostic segment, Biotest intends to
achieve a similar strong increase in EBIT.
The complete half-year report is available to view at www.biotest.de under
Investor Relations/Publications.
About Biotest
Biotest AG, Dreieich, Germany, is a company that researches and
manufactures pharmaceutical, biotherapeutic and diagnostic products and has
specialised in immunology and haematology. In its Pharmaceutical segment,
Biotest develops immunoglobulins, clotting factors and albumins based on
human blood plasma. These are used for diseases of the immune system or
haematopoietic system. In the Biotherapeutic segment, Biotest researches
into the clinical development of monoclonal antibodies, including in the
indications of rheumatoid arthritis and blood cancer. The Diagnostic
segment spans reagents and serology and microbiology systems which are
used, for example, in blood transfusions. Biotest has around 1,200
employees worldwide and its shares are listed in the Frankfurt Stock
Exchange's Prime Standard.
Biotest AG:
Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, www.biotest.de
Dr. Marion Wendorff, Tel: +49 (0) 6103 801-520, e-mail:
marion_wendorff@biotest.de
Fax: +49 (0) 6103 801-7840
WKN, ISIN ordinary share: 522720, DE0005227201
WKN, ISIN preference share: 522723, DE0005227235
Listed: Prime Standard/official trading
Frankfurt, Berlin, Düsseldorf, Hamburg, Stuttgart
DGAP 10.08.2007
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Language: English
Issuer: Biotest AG
Landsteinerstr. 5
63303 Dreieich
Deutschland
Phone: +49 - 6103 / 801 - 0
Fax: +49 - 6103 / 801 - 150
E-mail: mail@biotest.de
Internet: www.biotest.de
ISIN: DE0005227201, DE0005227235
WKN: 522720, 522723
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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