BRAIN is pleased with its results for the first nine months of the 2019/20 financial year
- Organic growth of Group revenues +12.2%
- BioScience segment continues dynamic growth
- Full-year forecast confirmed
B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) today published its results for the first nine months of the 2019/20 financial year. Accordingly, the BRAIN Group reports revenues of € 29.6 million compared to € 27.9 million in the same period of the previous year. Taking into account the deconsolidation of Monteil Cosmetics GmbH, this corresponds to organic growth of 12.2%.
Third quarter revenues increased by 8.4% to € 9.6 million from € 8.9 million in the same period last year. This growth was purely organic, achieved in both the BioScience and BioIndustrial segments.
“Particularly considering the general economic situation, we have achieved very good growth,” says Manfred Bender, CFO of BRAIN AG. “The fact that this growth is more pronounced in our research-driven segment is again due to the higher business volume with existing customers as well as new contracts for tailormade solutions projects.”
Development by segments
The BioScience segment generated revenues of € 10.5 million in the reporting period, up 37.5% from the prior-year period. Adjusted EBITDA improved from € -4.4 million to € -3.1 million.
Revenues of the BioIndustrial segment, which is related to product sales, decreased by 5.9% from € 20.3 million to € 19.1 million in the reporting period. Organically, revenues here increased by € 0.4 million or 2.1% from € 18.7 million to € 19.1 million. The adjusted EBITDA of the segment developed positively and increased by 9.2% from € 2.3 million to € 2.6 million. This corresponds to an adjusted EBITDA margin of 13.3% compared to 11.5% in the previous year.
The reasons for the weaker revenue growth in the product business are, in addition to the start of new production facilities in Cardiff (UK) and Büttelborn, the globally reduced demand for bioethanol and alcoholic beverages due to the Corona pandemic. The BRAIN subsidiary WeissBioTech supplies, among others, powerful enzymes to bioethanol producers and the wine industry.
Despite the ongoing Corona virus pandemic and the associated economic uncertainty, BRAIN AG is still confident to make further progress in the projected direction, albeit possibly at a slightly slower pace.
Key financials (first nine months of fiscal year 2019/20)
| (in € million) | 9M 2019/20 | 9M 2018/19 | Change % |
|---|---|---|---|
| Revenues | 29.6 | 27.9 | 5.8 |
| Total operating performance1 | 30.3 | 29.7 | 2.0 |
| BioScience | 10.5 | 7.6 | 37.5 |
| BioIndustrial | 19.1 | 20.3 | -5.9 |
| Adjusted EBITDA2 | -0.55 | -2.1 | 73.3 |
| EBITDA | -0.91 | -2.3 | 59.9 |
| Operating cash flow | -5.7 | -4.9 | -17.2 |
| 30.06.2020 | 30.09.2019 | ||
| Cash & cash equivalents | 18.8 | 15.2 | 23.9 |
1 Revenues + change in inventories + other income including R&D grants
2 The reconciliation from adjusted to unadjusted EBITDA can be found in the quarterly statement for the period ended 30 June 2020.
Additional information
BRAIN AG 9M-Report 2019/20:
www.brain-biotech.com/investors/financial-publications
Financial calendar:
www.brain-biotech.com/investors/financial-calendar
About BRAIN
BRAIN Biotech AG is a leading European supplier of bio-based products and solutions such as enzymes and proteins, microbial production strains, natural compounds and biotechnological solutions for more sustainable industrial processes. The company focuses on the fields of nutrition, health and environment.
BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. The Group's business activities are divided into three segments: The BioProducts segment comprises the product business with specialty enzymes and other proteins, for which the Group operates fermentation facilities in the United Kingdom and production facilities in continental Europe and the United States. The BioScience segment offers research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening. The BioIncubator segment conducts its own R&D projects or those initiated with partners with high value-added potential. A particularly promising incubator project is the development of the Company's own CRISPR-based gene editing technology platform, which is currently being established and expanded by Akribion Genomics (in foundation planning).
Through its own R&D activities, BRAIN Biotech Group is continuously expanding its product portfolio in the field of specialty enzymes and small molecules. The latter are the starting point for screenings, e.g. for novel drug candidates for pharmaceutical applications.
BRAIN Biotech AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since February 9, 2016 (ticker symbol: BNN; securities identification number: ISIN DE0005203947 / WKN 520394). The company employs approximately 330 people and generated revenues of EUR 55,3 million in the fiscal year 2022/23.
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Disclaimer
This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management. Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, as well as other factors. BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.