BRAIN shows stable business performance in the first nine months 2015/16
- Total operating performance at € 19.0 million
- BioScience segment slightly increased
- BioIndustrial revenues still below prior-year level due to oil price related decline in demand for bioethanol enzymes
- Results affected by one-off costs (IPO)
In the “BioScience” segment, the collaboration business with globally active partners especially from the specialty chemicals as well as the food and nutrition industries could be further expanded. Supported by several achieved development milestones, the total operating performance in the first nine months of 2015/16 increased by 5 percent year-over-year from € 8.7 million to € 9.1 million, representing a 48 percent operating performance share for this segment.
The total operating performance of the “BioIndustrial” segment decreased to € 10.0 million in the first nine months of 2015/16, from € 11.2 million in the previous year. This development is mainly due to the reduced demand for bioethanol related enzymes that started in the first quarter 2015/16. Some customers have meanwhile ramped up their production again, although the previous production level has not yet been reached. Concurrently, BRAIN is pressing ahead with its strategy of giving a stronger emphasis to the higher-margin special enzymes business, such as enzymes to process wine and fruit juice beverages. In the cosmetics area, the launch of the new anti-ageing care treatment Monteil ProBeActive made a successful start in Q3 2015/16.
As a result, the share of the industrial product business, combined in the “BioIndustrial” segment, in BRAIN Group’s total operating performance decreased from 57 percent to 52 percent.
“In total, beyond the bioethanol activities, we are satisfied with our business development in the first nine months of 2015/16. This is also supported by the increase of our revenues. We expect further strengthening of our business from the new strategic industrial partnership “DOLCE”, which aims at developing a new generation of biological sugar substitutes from natural sources. New government initiatives such as sugar taxes in Mexico and the UK are evidence of the strong demand for such natural alternative sweeteners from consumer goods producers”, comments Dr. Jürgen Eck, CEO of BRAIN AG.
The Group operating result (EBIT) declined year-on-year from € -3.9 million to € -7.7 million. Adjusted for one-off IPO-costs of € 1.1 million and personnel expenses resulting from a share-based employee compensation scheme of € 1.3 million, the adjusted Group EBIT amounted to € -5.2 million in the first nine months of fiscal year 2015/16. Thereof, € -0.3 million relate to the “BioIndustrial” segment and € -4.9 million to the “BioScience” segment.
Key financials (first nine months of fiscal year 2015/16)
|
(in Euro million)1
|
9M 2015/16 |
9M 2014/15 |
Total operating performance2 | 18.993 | 19.755 |
|---|---|---|
| BioScience | 9.126 | 8.653 |
| BioIndustrial | 9.964 | 11.211 |
| Adjustments (consolidation effects) | -0.097 | -0.109 |
| EBIT | -7.682 | -3.861 |
| Adjusted EBIT3 | -5.244 | -3.709 |
| Group result | -8.656 | -4.686 | Result per share in Euro | -0.58 | -0.36 |
| Cash flows from operating activities | -6.944 | -3.266 |
| Cash flows from investing activities | -2.772 | -0.427 | Cash flows from financing activities | 25.304 | 2.678 |
- The financial figures of the first nine months of fiscal 2015/16 are comparable only to a limited extent to the values of the previous year, as for the first nine months of FY 2014/15 they include the financial figures of the WeissBioTech organisations only since November 2014 due to the acquisition.
- Revenues + change in inventories + other income including R&D grants, only comparable to a limited extent
- Adjusted for one-off costs of the IPO and expenses resulting from share-based employee participation plans
More detailed information on the nine months and third quarter financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the quarterly statement for the period ending June 30, 2016.