19.04.2018
STRATEC Biomedical AG DE000STRA555
DGAP-News: STRATEC reports significant growth in sales and earnings in 2017
DGAP-News: STRATEC Biomedical AG / Key word(s): Final Results/Forecast
STRATEC reports significant growth in sales and earnings in 2017
19.04.2018 / 06:54
The issuer is solely responsible for the content of this announcement.
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STRATEC reports significant growth in sales and earnings in 2017
- Consolidated sales up 13.4% at EUR 209.8 million in 2017 (previous year:
EUR 184.9 million)
- Adjusted EBIT rises 10.1% to EUR 35.5 million in 2017 (previous year: EUR
32.2 million)
- Adjusted EBIT margin 16.9% (down 50 basis points; previous year: 17.4%)
- Adjusted consolidated earnings 10.4% higher in 2017 at EUR 27.9 million
(previous year: EUR 25.3 million)
- Dividend proposal of EUR 0.80 per share (previous year: EUR 0.77 per
share)
- Further growth forecast for 2018
Birkenfeld, April 19, 2018
STRATEC Biomedical AG, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard)
is today announcing the final audited (unqualified audit opinion) figures
for the STRATEC Group in accordance with IFRS for the fiscal year ended on
December 31, 2017, together with the publication of its 2017 annual report.
Key figures (EUR 000s) 2017 2016 Chang- Q4/201- Q4/201- Change
e 7 6
Sales 209,764 184,911 +13.4- 58,697 58,577 +0.2%
%
Adjusted EBIT(1) 35,451 32,196 +10.1- 11,478 13,805 -16.9%
%
Adjusted EBIT margin 16.9 17.4 -50 19.6 23.6 -400
(%)(1) bps bps
Adjusted consolidated 27,936 25,308 +10.4- 9,309 10,057 -7.4%
earnings(1) %
Adjusted earnings per 2.35 2.14 +9.8% 0.78 0.85 -8.2%
share (EUR)(1)
Earnings per share 2.16 1.65 +30.9- 0.84 0.98 -14.3%
(EUR) %
bps = basis points
(1) Figures adjusted for comparison; adjusted to exclude amortization
resulting from purchase price allocations in the context of acquisitions,
associated integration expenses, income from securities and other
extraordinary effects. Reconciliation to IFRS figures can be found in the
2017 annual report.
2017 was once again an eventful and successful year for STRATEC. New records
were set for both sales and earnings. In addition, further major development
agreements were signed with leading global diagnostics companies in the past
fiscal year. The market for complex analyzer systems for in-vitro
diagnostics and life sciences continues to offer positive, sustainable
growth prospects, reflecting global healthcare industry trends and a further
growing willingness of the part of our clients to outsource instrumentation
solutions to partners such as STRATEC. Against this background and as a
result of forthcoming and recent product launches by our partners, we are
forecasting further growth in 2018 as well. Moreover, the fourteenth
dividend increase in a row will be proposed at the Annual General Meeting on
May 30, 2018.
Business performance
Sales increased by 13.4% from EUR 184.9 million in 2016 to EUR 209.8 million
in fiscal year 2017, in line with management's guidance range of EUR 205-220
million. The upturn in sales relates both to the acquisitions in 2016 that
were included in consolidation for the full year for the first time in 2017,
and to strong business with service parts and consumables in addition to
increased development and services sales. Adjusted for the two acquisitions
in 2016 and the product reallocation since implemented, sales grew by 6.1%
in 2017.
Following the previous year's record sales levels, recurring sales from
service parts and consumables increased again by 28.2% to EUR 68.7 million
(previous year: EUR 53.6 million), and now account for 32.8% (previous year:
29.0%) of total sales. In particular, this growth was driven by a
continuously increased base of systems installed in recent years and the
greater average system complexity. Sales from development and services also
rose significantly to EUR 37.5 million (previous year: EUR 28.4 million)
against the backdrop of a full development pipeline. By contrast, systems
sales were up only slightly to EUR 102.2 million compared with EUR 101.7
million in the previous year.
Adjusted EBIT grew by 10.1% year-on-year to EUR 35.5 million (previous year:
EUR 32.3 million), resulting in an EBIT margin of 16.9% versus 17.4% in the
previous year. Positive margin effects, like the strong service parts and
consumables business, were offset by increased costs for additional
development capacity. Increased sales from development and services also
affected the margin negatively.
Adjusted consolidated earnings rose by 10.4% to EUR 27.9 million (previous
year: EUR 25.3 million). Adjusted earnings per share climbed by 9.8% to EUR
2.35 (previous year: EUR 2.14). IFRS earnings per share were up 30.9% at EUR
2.16 (previous year: EUR 1.65).
Earnings figures were adjusted for purposes of comparison. Specifically,
they were adjusted for amortization from purchase price allocation for
acquisitions, related integration expenses, income from securities and other
extraordinary effects. A statement showing the reconciliation of the
adjusted figures to IFRS results can be found in the 2017 annual report
published today.
Outlook
Adjusted for currency effects and acquisitions, STRATEC is forecasting at
least mid-single-digit organic sales growth in fiscal year 2018. Given the
strong 2017 figures for the first quarter and the anticipated higher sales
contribution from systems newly launched onto the market, STRATEC expects to
generate most of the sales growth planned for 2018 in the second half of the
financial year. The expected subdued start to the financial year is due not
least to the specific timing of milestone payments being recognized as
sales.
STRATEC expects an adjusted EBIT margin for fiscal 2018 in line with the
previous year's figure of around 17%.
This forecast for 2018 does not include the effects of the first-time
adoption of IFRS 15, as these had not yet been conclusively assessed as at
the time of reporting. Based on initial, still preliminary assessments,
STRATEC expects IFRS 15 requirements to have a moderate impact on its
earnings, financial and asset position.
Given upcoming market launches and the significant progress being made in
numerous project negotiations, STRATEC continues to expect to generate
average annual organic sales growth (CAGR) in the high single-digit or low
double-digit percentage range in the years ahead. The positive development
anticipated in profitability thanks to economies of scale in connection with
recent acquisitions will be tempered by temporary increases in investing and
developing activities for planned growth with selected customer projects.
Overall, STRATEC expects the EBIT margin to remain broadly consistent.
Investment in the business in 2018 is expected to be slightly higher than in
the previous year due to the planned conversion and expansion work at the
Birkenfeld location.
Dividend proposal and planned transformation into a European company
In light of the positive business development in 2017, the low debt ratio,
favorable financing costs and the positive long-term prospects, the
Management Board and Supervisory Board of STRATEC Biomedical AG will be
proposing the distribution of a dividend of EUR 0.80 per share for fiscal
2017 at the Annual General Meeting on May 30, 2018. This amount would
represent an increase of 3.9% over the dividend payment of EUR 0.77 per
share in the previous year.
Subject to the approval of the Annual General Meeting, shareholders can
therefore look forward to an increased dividend for the fourteenth time in a
row since dividend payments began in 2004. In this way, STRATEC hopes to
maintain its continuity-oriented dividend policy. As STRATEC is still
focused on internal and external growth opportunities, this guideline may be
deviated from at times. Such opportunities can arise from major acquisitions
or the necessity of potential pre-financing for major projects.
The Management Board and the Supervisory Board have also resolved to propose
the transformation of STRATEC Biomedical AG into a European company
(Societas Europaea, SE), known as STRATEC SE, at the Annual General Meeting.
In the opinion of the Management Board and the Supervisory Board, the
planned change of legal form is in keeping with STRATEC's self-image as an
internationally oriented company.
Development in personnel and capacity expansions
Including agency employees and trainees, the STRATEC Group employed 1,086
people in total as of December 31, 2017. This corresponds to growth of 11.3%
from the previous year. The rise in the number of employees is largely due
to the higher level of development work at present in connection with a full
project pipeline. We also anticipate solid demand for additional highly
qualified employees in the years ahead, particularly in research and
development.
The conversion and extension of the buildings at the Birkenfeld location was
resolved in 2017 in order to keep pace with this expected further growth.
Planning is currently in the final phase. Construction work is expected to
begin in spring 2018, with completion scheduled for the end of 2019.
Projects and other development
A number of key milestones were achieved in the development of new systems
in 2017. For example, Hologic, one of STRATEC's biggest customers, announced
the market approval of "Panther Fusion" in the first half of 2017. STRATEC
is also anticipating further significant market launches by its customers in
2018, and the launch of our in-house "KleeYa" analyzer platform.
STRATEC entered into further development agreements with leading global
diagnostics companies in 2017, and is conducting promising negotiations for
a large number of other projects.
At an operational level, 2018 will focus on the implementation of a uniform
Group-wide ERP system that will greatly simplify cooperation across all
locations and make processes more efficient. The first phase of the roll-out
was already completed in January 2018 with the implementation of the system
at our locations in Austria and Hungary. Preparations are now underway for
implementation at our head office in Birkenfeld.
2017 annual report
The 2017 annual report of STRATEC Biomedical AG has been published on the
company's website at www.stratec.com/financial_reports.
Forthcoming dates
The Quarterly Statement Q1|2018 will be published on May 15, 2018.
The Annual General Meeting of STRATEC Biomedical AG will be held in
Pforzheim on May 30, 2018. The invitation to the Annual General Meeting will
be sent to STRATEC's shareholders in good time before the Annual General
Meeting.
Conference call and audio webcast
On the occasion of the publication of our final figures for fiscal year
2017, a conference call will be held in English today, Thursday, April 19,
2018, at 1:00 pm (CEST).
Access data (telephone number, password + individual PIN) will be available
following a quick registration process at the following link:
www.stratec.com/registration
The conference call can also be streamed as an audio webcast at
www.stratec.com/audiowebcast20180419 (registration required). Please note
that questions cannot be asked via audio webcast. The slideshow can also be
watched/downloaded using this link.
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. Furthermore, the company offers sample
preparation solutions, integrated laboratory software, and complex
consumables for diagnostic and medical applications. STRATEC covers the
entire value chain - from development to design and production through to
quality assurance.
The partners market the systems, software and consumables, in general
together with their own reagents, as system solutions to laboratories, blood
banks, and research institutes around the world. STRATEC develops its
products on the basis of its own patented technologies.
Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard
segment of the Frankfurt Stock Exchange.
Further information is available from:
STRATEC Biomedical AG
Jan Keppeler, Investor Relations & Corporate Communications
Gewerbestr. 37, 75217 Birkenfeld
Germany
Tel: +49 7082 7916-6515
Fax: +49 7082 7916-9190
[email protected]
www.stratec.com
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19.04.2018 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.
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Archive at www.dgap.de
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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: [email protected]
Internet: www.stratec.com
ISIN: DE000STRA555
WKN: STRA55
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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676091 19.04.2018
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