DGAP-News: Annual financial statements for 2018: Further progress in strategy implementation with double-digit sales growth in key markets and significant milestones in silver coating technology; North America fell short of expectations
DGAP-News: aap Implantate AG / Key word(s): Annual Results
Annual financial statements for 2018: Further progress in strategy implementation with double-digit sales growth in key markets and significant milestones in silver coating technology; North America fell short of expectations
30.04.2019 / 10:20
The issuer is solely responsible for the content of this announcement.
aap Implantate AG ("aap") realized sales of EUR 10.8 million in financial year 2018 (FY/2017: EUR 10.9 million). EBITDA in the reporting period amounted to EUR -6.4 million (FY/2017: EUR -6.2 million).
2018 - Major Results and Progress
- Sales by region: Double-digit growth rates in Germany (+14%) and international key markets (+24% in BRICS and Europe without Germany); North America fell short of expectations (-27%)
- Gross margin and costs: Gross margin at a continued good level of 78%, albeit temporarily influenced by reduced share of high-margin US sales in overall sales; scheduled slight increase in personnel costs; other expenses on previous year level with high one-time costs in connection with extended measures for step-up strategy implementation
- Cash flow and balance sheet: Cash need in FY/2018 totalled EUR 9.0 million with positive effects of working capital reduction (EUR 0.7 million); cash holdings of EUR 7.3 million and a further high equity ratio of 83%
- LOQTEQ(R): Focus on, inter alia, European approval for polyaxial LOQTEQ(R) systems and development of sterile packaging for implants; approval applications submitted to FDA for, among other things, foot and periprosthetic system
- Silver coating technology: Significant milestones with convincing results of an animal study undertaken with the renowned AO Research Institute in Davos and submission of the application for approval of a human clinical study to the Federal Institute for Drugs and Medical Devices (BfArM)
For a detailed evaluation of the Management Agenda 2018 please refer to the consolidated annual financial report for 2018, published today.
2018 - Financials
||Change on year
North America distributors
North America global partners
International (without North America)
Europe (without Germany)
Total key markets
|Other (mainly discontinued activities)
With a view to the sales development in the individual regions, aap recorded a pleasing development in its home market Germany in financial year 2018 and increased sales by 14% to EUR 2.8 million (FY/2017: EUR 2.4 million). Here, the sales activities, such as the listing at major German hospital groups and purchasing associations, show effect. In contrast, the sales development in North America fell short of expectations in 2018. In this market aap could not sign further contracts with global partners in the past financial year, and distribution business was temporarily burdened by the loss of certain distributors and clinics. This shortfall in sales could not be offset on a short-term basis elsewhere. International key markets Europe (without Germany) and BRICS continued to develop positively and aap recorded a significant growth of 24% to EUR 3.6 million (FY/2017: EUR 2.9 million). Growth drivers were both the development of business with existing customers and the acquisition of new customers.
||Change on year
EBITDA in financial year 2018 totalled EUR -6.4 million (FY/2017: EUR -6.2 million) and thus could not be improved in the reporting period. It was mainly influenced by the following developments:
- Increased total operating performance with reduced build-up of inventories and higher volume of own work capitalized due to extensive work on silver coating technology
- Gross margin temporarily burdened by reduced share of high-margin US sales in total sales; decrease from 82% to 78%
- Scheduled slight increase in personnel costs to EUR 7.8 million (FY/2017: EUR 7.4 million) due to new recruitments, in particular at the end of 2017, in order to fulfil increased regulatory requirements and for targeted market approval of silver coating technology
- Other operating expenses unchanged compared to previous year at EUR 9.4 million, but with substantial one-time costs in connection with, inter alia, extended measures for step-up strategy implementation
Outlook for 2019
For financial year 2019 the Management Board anticipates a sales increase to a value of EUR 13.0 million to EUR 15.0 million, corresponding to a growth between about 20% and 40%. aap also plans to improve EBITDA and expects a value of EUR -4.4 million to EUR -2.8 million for the current year.
All markets shall contribute to the planned sales growth and earnings improvement. aap is confident that with the measures already initiated in North America a dynamic sales development can be shown again in 2019. At the same time, the positive growth trend in Germany and in international business shall be continued. aap is also working towards strategic partnerships with global orthopaedic companies (distribution networks, licensing deals as well as product development and approval projects).
For financial year 2019 and the following years, the Management Board has set itself the goal of achieving significant sales growth, and further developing the company's pioneering and innovative silver coating technology and to receive market approval. Based on these targets different measures to strengthen the financial base are necessary, which have been adopted in mid-April and which will now be implemented at short notice. These include, besides a capital increase with subscription rights, two external financings. With the inflows from these financing measures totalling at least around EUR 4.0 million, the realisation of the planned sales growth and further planned payment inflows, such as from technology-based transactions and public funding, aap aims to secure the financing of the company sustainably until at least the end of 2020.
With a 25% sales growth to EUR 3.5 million in the first quarter aap made a good start to 2019 and laid a sound foundation for the planned dynamic sales growth in the full year. The intensive current exchange with the BfArM on aap's application to conduct a human clinical study for its silver coating technology makes the company optimistic and different global orthopaedic companies reaffirmed their interest in the innovative silver coating technology as well as in the products of the LOQTEQ(R) family during talks currently conducted.
Based on these developments, the Management Board remains confident to enter into a growth phase now with a magnificent technology pipeline, modern production facilities, international product approvals and a good sales momentum in key markets.
 Relating to sales revenues, changes in inventories of finished and unfinished products and cost of materials / purchased services.
 In the consolidated balance sheet of 12/31/2018 EUR 4.3 million is stated as cash and cash equivalents, while cash with banks totalling EUR 3.0 million is shown under current and non-current other financial assets as it was pledged to secure financial liabilities respectively cash payments were made to secure bank guarantees granted to third parties.
aap Implantate AG (ISIN DE0005066609) - Prime Standard/Regulated Market - All German stock markets -
About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma products for orthopaedics. The IP protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) and trauma complementary biomaterials a wide range of cannulated screws as well as standard plates and screws. Furthermore, aap Implantate AG has an innovation pipeline with promising development projects as the antibacterial silver coating technology and magnesium based implants. These technologies address critical problems in surgery that haven't yet been resolved adequately. In German-speaking Europe aap Implantate AG directly sells its products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 25 countries at the international level. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
aap Implantate AG; Fabian Franke; Investor Relations; Lorenzweg 5; D-12099 Berlin Tel.: +49/30/750 19 - 134; Fax.: +49/30/750 19 - 290; email@example.com
30.04.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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||aap Implantate AG
||+49 (0) 30 75 01 90
||+49 (0) 30 75 01 91 11
||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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||DGAP News Service
Quelle: boersengefluester.de und Firmenangaben
Die wichtigsten Finanzdaten auf einen Blick
|Ergebnis je Aktie8
Geschäftsbericht 2018 - Kostenfrei herunterladen.
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de
||Kurs in €
||Börsenwert in Mio. €
|Dividende '19 in €
||Dividende '20e in €
||Performance 52 Wochen