Interim / Quarterly Report • Jul 18, 2017
Interim / Quarterly Report
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January - June 2017
July 18, 2017
| Amounts in SEK millions | $2nd$ quarter Apr-Jun 2017 |
$2nd$ quarter Apr-Jun 2016 |
6 months Jan-Jun 2017 |
6 months Jan-Jun 2016 |
12 months Jan-Dec 2016 |
|---|---|---|---|---|---|
| Net sales | 196.3 | 162.9 | 381.5 | 321.7 | 667.9 |
| Cost of sales | $-75.3$ | $-69.8$ | $-147.7$ | $-138.0$ | $-282.1$ |
| Gross profit | 121.0 | 93.1 | 233.8 | 183.8 | 385.8 |
| Operating expenses | $-83.9$ | $-68.9$ | $-161.7$ | $-136.0$ | $-286.7$ |
| Operating profit/loss (EBIT) | 37.2 | 24.2 | 72.1 | 47.8 | 99.1 |
| Financial items | 0.6 | 0.8 | 1.9 | 1.1 | $-6.7$ |
| Profit/loss before tax | 37.8 | 25.0 | 74.0 | 48.9 | 92.4 |
| Tax expenses | $-0.1$ | $-0.3$ | $-1.1$ | $-1.3$ | 0.4 |
| Total profit/loss for the period | 37.7 | 24.7 | 73.0 | 47.6 | 92.8 |
| Gross margin | 61.7% | 57.2% | 61.3% | 57.1% | 57.8% |
| Operating margin (EBIT) | 18.9% | 14.9% | 18.9% | 14.9% | 14.8% |
Note that Biotage presents some financial metrics in the interim report that are not defined according to IFRS. Definitions of these are found in the 2016 Annual Report, page 34.
The sales successes of Biotage continue with yet another record quarter. At comparable exchange rates, sales in the quarter and the half-year increased by 15.9 and 14.0 percent, respectively, which is considerably higher than the average for our markets. The gross margin for the quarter as well as for the six-month period exceeds our strategic 60 percent goal. Higher sales in relation to the fixed cost base contribute significantly to the improved margin. The operating margin (EBIT) is 18.9 percent for the quarter as well as for the half-year, and averages 13.9 percent for the last three years.
All our product areas are growing. This quarter we saw especially strong sales in the product areas peptide synthesis, evaporation systems and industrial products. The combination of good system solutions and media for flash purification makes Biotage an attractive partner in the peptide area. For industrial products the sales of systems as well as consumables are increasing and we note that our products are used in a number of new projects among customers in the pharma industry. Also the system sales in organic synthesis are developing well.
All geographies show double digit growth in the quarter as well as in the six-month period. Asia is the area showing the strongest growth. Above all South Korea develops strongly, but also Japan had a good quarter. The sales successes are benefiting from the increased direct sales. The latest investments in South Korea and China are good examples of this. The direct sales will now be expanded to Italy, where we from July will be selling out entire product range through our own organization. Our evaluation of the sales strategy for India is now nearing completion and we expect to be operative with our own company in India in 2018. We are using the same approach as in South Korea and China with a combination of direct sales and local distributors.
The increasing sales put higher demands on and enable a more efficient production. Great efficiency improvements have been implemented at the plant in Cardiff, Wales, among other things through increased automation. The increased production volumes motivate investments in the production and in the later part of 2017 the production space in Cardiff will be expanded. Access to the new premises enables further automation of the production.
The strong sales growth in China is primarily related to systems. In order to better meet the price competition on consumables we have now introduced a locally adapted line of consumables for flash purification. If the locally produced raw material can maintain an even, if not high, quality there is a possibility to introduce these consumables also in other markets.
At the end of the quarter two new system launches were made, Biotage Isolera™ Dalton 2000 and a new generation of the evaporation system TurboVap®. Biotage Isolera™ Dalton 2000 is a new mass detection system for flash purification that opens up for a broader functionality with a detection range up to molecular weights of 2000 m/z (mass-to-charge ratio). The new system is integrated with Biotage's flash system Isolera™ and the software functionality Isolera™ Spektra through Isolera™ Dalton Nanolink. The new TurboVap® system is based on the previous system which has been successful for a number of years, but has increased functionality and improved user friendliness. We are eagerly looking forward to the results of these product launches.
Group net sales in the second quarter 2017 amounted to 196.3 MSEK (162.9), which is an increase by 20.5 percent (10.0). At comparable exchange rates sales increased by 15.9 percent (11.1) compared to the corresponding quarter last year. The Americas was the largest market with 44 percent (43) of the net sales. The EU area contributed 28 percent (30), Japan 14 percent (12), China 8 percent (9), South Korea 3 percent (2), EMEA 1 percent (2) and APAC 2 percent (3).
The Group's gross margin improved to 61.7 percent (57.2). The improved profitability is mainly attributable to the increased sales volume and efficiency improvements in the production. The distribution of sales between systems and aftermarket products was 49 percent (45) and 51 percent (55), respectively. The strong systems sales have effected a change in the relation between systems and aftermarket further away from the strategic goal of 40/60.
The operating expenses amounted to 83.9 MSEK (68.9). Of this sum 52.7 MSEK (46.6) were sales costs. The increase in sales costs by 6.1 MSEK compared to the corresponding period last year is attributable primarily to increases in the sales force and a part of this is the establishment of direct sales in South Korea from the fourth quarter 2016. The research and development costs amounted to 13.7 MSEK (13.2). The administration costs amounted to 13.2 MSEK (13.0). Other operating items, amounting to -4.3 MSEK (4.0), primarily consists of currency effects on operations related liabilities and receivables.
Operating profit improved by 54 percent to 37.2 MSEK (24.2), corresponding to an operating margin (EBIT) of 18.9 percent (14.9). Net financial income amounted to 0.6 MSEK (0.8). The result after tax improved by 52 percent to 37.7 MSEK (24.7).
The cash flow from operating activities improved to 43.1 MSEK (29.1). The investments amounted to 10.7 MSEK (12.9). Amortizations and write-downs amounted to 9.0 MSEK (12.8). Capitalized development costs accounted for 6.6 MSEK (9.9) of the investments and for 5.0 MSEK (8.6) of the amortizations and writedowns.
The Group's net sales in the six-month period increased by 18.6 percent (10.1) and amounted to 381.5 MSEK (321.7). At comparable exchange rates net sales increased by 14 percent (10.3). The Americas was the biggest market with 43 (43) percent of the net sales. The EU area contributed 28 percent (30), Japan 14 percent (14), China 8 percent (8), South Korea 3 percent (1), EMEA 2 percent (2) and APAC 2 percent (3).
The Group's gross margin improved to 61.3 percent (57.1). Systems accounted for 48 percent (44) of the sales and aftermarket products for 52 percent (56).
The operating expenses amounted to 161.7 MSEK (136.0). The increase is mainly attributable to the increase in sales costs by 14.0 MSEK to 102.9 MSEK (88.8).
The operating profit improved by 51 percent (34) to 72.1 MSEK (47.8) corresponding to an operating margin (EBIT) of 18.9 percent (14.9). Net financial income amounted to 1.9 MSEK (1.1). The result after tax was 73.0 MSEK (47.6), an increase by 53 percent.
The cash flow from operating activities was 72.2 MSEK (65.9). The working capital increased by 17.2 MSEK during the period. Of this sum 6.3 MSEK relates to inventories and 8.7 MSEK to operating receivables. The increase is mainly due to higher sales and launch of new products. The investments amounted to 16.7 MSEK (21.1). Amortizations and write-downs amounted to 17.3 MSEK (23.5). Capitalized development costs accounted for 10.7 MSEK (16.4) of the investments and for 9.2 MSEK (9.5) of the amortizations and write-downs.
At June 30, 2017 the Group's cash and cash equivalents amounted to 101.6 MSEK (99.6), compared to 152.1 MSEK at March 31 and 128.6 MSEK at the start of the year. The Group had no interest-bearing liabilities, neither at the end of the reported period, nor at the end of the comparative period. Net cash at June 30 thus amounted to 101.6 MSEK (99.6) compared to 128.6 at the start of the year. During the period dividends to the shareholders were paid to the amount of 80.9 MSEK (80.9).
The Group reports a total goodwill of 104.0 MSEK (104.0) at June 30. The reported goodwill is related to the acquisition of MIP Technologies AB and two product lines from Caliper Life Sciences Inc. in 2010.
Other intangible fixed assets amounted to 115.9 MSEK (114.7), compared to 116.0 MSEK at the start of the year. Of this sum, patents and license rights amounted to 23.6 MSEK (27.3) compared to 25.2 MSEK at the start of the year, and capitalized development costs to 92.3 MSEK (87.4), compared to 90.8 MSEK at the start of the year.
At June 30 the equity capital amounted to 545.7 MSEK (510.3) compared to 563.2 MSEK at the start of the year. The change in equity capital during the first six months is attributable to the net result 73.0 MSEK (47.6), dividends to the shareholders - 80.9 MSEK (-80.9), and hedging and currency effects at the translation of foreign subsidiaries -9.8 MSEK (-4.0).
Biotage had no holding of own shares at the end of the reported period. No shares have been acquired under the repurchasing program resoved at the 2017 Annual General Meeting. Complete documentation from the AGM is available at www.biotage.com.
Biotage has as previously reported been sued for alleged patent infringement in the US by Scientific Plastic Products, Inc. ("SPP"). These plaints are declared resting by the court awaiting the results of reexamination cases of the validity of the patents by the US Patent and Trademark Office. Biotage's analysis indicates that the company has a strong position and that the other party lacks good cause for the alleged patent infringement. Thus no reserves have been booked due to the conflict.
There are no major events after the reported period to report.
The Group had 334 employees (305) at June 30, compared to 323 at the start of the year.
The Group's parent company, Biotage AB, has wholly owned subsidiaries in Sweden, the United States, United Kingdom, Germany, France, Italy, Japan and China, and from June 2016 in South Korea. The parent company is responsible for group management, strategic business development and administrative functions at group level and towards subsidiaries.
The parent company's net income was 0.6 MSEK (0.6) in the second quarter and 1.2 MSEK (1.1) in the six month period. Operating expenses amounted to 5.6 MSEK (4.9) in the quarter and to 10.9 MSEK (10.8) in the six month period. The operating result was -5.0 MSEK (-4.4) for the quarter and -9.7 MSEK (-9.6) for the six month period.
The parent company's net financial income was 1.6 MSEK (-1.0) for the quarter and 2.2 MSEK (3.4) for the six month period. The parent company's result after financial items was -3.4 MSEK (-5.3) for the quarter and -7.5 MSEK (-6.2) for the half-year period.
Investments in intangible assets amounted to 0.0 MSEK (0.6) in the quarter and 0.0 MSEK (1.0) for the six month period. The parent company's cash and bank balance was 1.5 MSEK (1.3) at June 30, compared to 1.4 MSEK at the start of the year.
As an international Group, Biotage is exposed to various risks that affect the possibilities to achieve the established targets. There are operational risks, such as the risk that competitive situations affect price levels and sales volumes, and the risk that the economic development in the markets and segments where the Group operates is not stable. There are also financial risks, such as currency risks, interest risks and credit risks. No major changes in significant risks or uncertainty factors have occurred during the period. Our assessment thus remains unchanged compared to the description of the company's risks, uncertainty factors and the handling of these in the company's Annual Report for 2016. Readers wishing to study the Annual Report can download this from the company's website www.biotage.com or order it from Biotage AB, Box 8, SE-751 03, Uppsala, Sweden or [email protected].
The interim report for the third quarter 2017 will be issued on November 2, 2017. The year-end report for 2017 will be issued on February 8, 2018.
This report has not been reviewed by the company's auditor.
The Board of Directors and the CEO assure that the interim report gives a fair review of the operations of the Parent Company and the Group, their financial positions and results, and describes the significant risks and uncertainties that the Parent Company and the Group companies are facing.
Uppsala July 18, 2017
Torben Jörgensen President and CEO
| Ove Mattsson | Nils-Olof Björk | Yvonne Mårtensson | |
|---|---|---|---|
| Chairman | Board Director | Board Director | |
| Thomas Eklund | Peter Ehrenheim | Karolina Lawitz | |
| Board Director | Board Director | Board Director | |
| Love Amcoff | Malin Albertsson | Annika Gärdlund | Anders Wessman |
| Board Director | Board Director | Deputy Board Director | Deputy Board Director |
| Employee Representative | Employee Representative | Employee Representative | Employee Representative |
For further information, please contact:
Torben Jörgensen, President and CEO, phone: +46 707 49 05 84 Erika Söderberg Johnson, CFO, phone: +46 707 20 48 20
This information is information that Biotage AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 11.00 CET on July 18, 2017.
Biotage offers efficient separation technologies from analysis to industrial scale and high quality solutions for analytical chemistry from research to commercial analysis laboratories. Biotage's products are used by government authorities, academic institutions, pharmaceutical and food companies, among others. The company is headquartered in Uppsala and has offices in the US, UK, China, Japan and South Korea. Biotage has approx. 330 employees and had sales of 668 MSEK in 2016. Biotage is listed on NASDAQ Stockholm. Website: www.biotage.com
| 2017-04-01 | 2016-04-01 2017-01-01 2016-01-01 2016-01-01 | ||||
|---|---|---|---|---|---|
| 2017-06-30 | 2016-06-30 2017-06-30 2016-06-30 2016-12-31 | ||||
| Attributable to parent company's shareholders: Total profit/loss for the period |
37,677 | 24,730 | 72,970 | 47,602 | 92,796 |
| Attributable to parent company's shareholders: | |||||
| Total comprehensive income for the period | 30,628 | 26,085 | 63,329 | 43,613 | 97,474 |
| Average shares outstanding | 64,714,447 | 64,714,447 | 64,714,447 | 64,714,447 | 64,714,447 |
| Shares outstanding at end of reporting period | 64,714,447 | 64,714,447 | 64,714,447 | 64,714,447 | 64,714,447 |
| Total profit/loss for the period per share SEK | 0.58 | 0.38 | 1.13 | 0.74 | 1.43 |
| Total profit/loss for the period per share SEK after dilution | 0.58 | 0.38 | 1.13 | 0.74 | 1.43 |
| Earnings per share relates to: | |||||
| Continuing operations | 0.58 | 0.38 | 1.13 | 0.74 | 1.43 |
| Total comprehensive income for the period per share SEK |
0.47 | 0.40 | 0.98 | 0.67 | 1.51 |
| Total comprehensive income for the period per share after dilution SEK |
0.47 | 0.40 | 0.98 | 0.67 | 1.51 |
| Quarterly summary 2016 and 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 |
|---|---|---|---|---|---|---|
| Amounts in KSEK | Q 2 | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Net Sales | 196,315 | 185,228 | 179,145 | 167,032 | 162,859 | 158,875 |
| Cost of sales | $-75,270$ | $-72,473$ | $-73.272$ | $-70,849$ | $-69,769$ | $-68,208$ |
| Gross profit | 121,045 | 112,755 | 105,873 | 96,183 | 93,091 | 90,666 |
| Gross margin | 61.7% | 60.9% | 59.1% | 57.6% | 57.2% | 57.1% |
| Operating expenses | $-83.853$ | $-77.808$ | $-81,791$ | $-68,951$ | $-68,865$ | $-67,092$ |
| Operating profit/loss | 37,192 | 34.947 | 24,082 | 27,232 | 24,225 | 23,574 |
| Financial net | 600 | 1.304 | $-5,852$ | $-1,963$ | 761 | 343 |
| Profit/loss before income tax | 37,793 | 36,250 | 18,230 | 25,269 | 24,986 | 23,917 |
| Tax expenses | $-116$ | $-958$ | $-738$ | 2.432 | $-256$ | $-1,044$ |
| Total profit/loss for the period | 37,677 | 35,293 | 17,492 | 27,701 | 24,730 | 22,872 |
| Amounts in SEK thous ands | 2017-06-30 | 2016-12-31 |
|---|---|---|
| ASSETS | ||
| Non-Current assets | ||
| Property, plant and equipment | 44,284 | 45,447 |
| Goodwill | 104,023 | 104,023 |
| Other intangible assets | 115,854 | 116,015 |
| Financial assets | 20,728 | 21,389 |
| Deferred tax asset | 53,578 | 52,344 |
| Total non-current assets | 338,467 | 339,217 |
| Current assets | ||
| Inventories | 90,804 | 88,906 |
| Trade and other receivables | 142,516 | 138,451 |
| Cash and cash equivalents | 101,637 | 128,622 |
| Total current assets | 334,957 | 355,980 |
| TOTAL ASSETS | 673,424 | 695,196 |
| EQUITY AND LIABILITIES | ||
| Capital and reserves attributable to equity holders of the | ||
| parent company | ||
| Share capital | 89,953 | 89,953 |
| Reserves | $-93,579$ | $-83,938$ |
| Retained earnings | 549,300 | 557,223 |
| Total equity | 545,675 | 563,238 |
| Non-current liabilities | ||
| Other financial liabilities | 727 | 815 |
| Deferred tax liability | 1,734 | 1,759 |
| Non-current provisions | 1,554 | 1,663 |
| Total non-current liabilities | 4,014 | 4,237 |
| Current liabilities | ||
| Trade and others liabilities | 118,629 | 123,733 |
| Other financial liabilities | ||
| Tax liabilities | 1,160 | 1,085 |
| Current provisions | 3,947 | 2,903 |
| Total current liabilities | 123,735 | 127,721 |
| TOTAL EQUITY AND LIABILITIES | 673,424 | 695,196 |
| Accumulated | |||||
|---|---|---|---|---|---|
| Share | translation | Hedging | Retained | Total | |
| Amounts in SEK thous ands | capital | reserve | reserve | earnings | equity |
| Opening balance January 1, 2016 | 89,953 | $-88,687$ | 70 | 545,320 | 546,657 |
| Changes in equity in the | |||||
| period of January 1 -december 31, 2016 | |||||
| T otal comprehensive income | 4,460 | 218 | 92,796 | 97,474 | |
| Total non-owners changes | 4,460 | 218 | 92,796 | 97,474 | |
| Transactions with equity holders of the company | |||||
| Dividend to shareholders of the parent company | $-80,893$ | $-80,893$ | |||
| Reclassification terminated option program | |||||
| Closing balance December 31, 2016 | 89,953 | $-84,227$ | 289 | 557,223 | 563,238 |
| Changes in equity in the | |||||
| period of January 1, - June 30, 2016 | |||||
| T otal comprehensive income | $-2,779$ | $-1,210$ | 47,602 | 43,613 | |
| Total non-owners changes | $-2,779$ | $-1,210$ | 47,602 | 43,613 | |
| Transacitions with equity holders of the company | |||||
| Dividend to shareholders of the parent company | $-80,893$ | $-80,893$ | |||
| Reversal unpaid additional purchase consideration | 888 | 888 | |||
| Closing balance June 30, 2016 | 89,953 | $-91,466$ | $-1,139$ | 512,918 | 510,266 |
| Changes in equity in the | |||||
| period of January 1, - June 30, 2017 | |||||
| T otal comprehensive income | $-9,774$ | 133 | 72,970 | 63,329 | |
| Total non-owners changes | $-9,774$ | 133 | 72,970 | 63,329 | |
| Transacitions with equity holders of the company | |||||
| Dividend to shareholders of the parent company | $-80,893$ | $-80,893$ | |||
| Closing balance June 30, 2017 | 80.053 | 94.001 | 422 | 549.300 | 545.675 |
| 2017-04-01 | 2016-04-01 | 2017-01-01 2016-01-01 2016-01-01 | |||
|---|---|---|---|---|---|
| Amounts in SEK thous ands | 2017-06-30 | 2016-06-30 | 2017-06-30 2016-06-30 2016-12-31 | ||
| Operating activities | |||||
| Profit/loss before income tax | 37,793 | 24,986 | 74,043 | 48,903 | 92,401 |
| A djustments for non-cash items | 11.694 | 9,732 | 17,665 | 18,785 | 42,649 |
| 49,487 | 34,718 | 91,708 | 67,688 | 132,051 | |
| Income tax paid | $-985$ | $-75$ | $-2,234$ | $-2,911$ | $-5,363$ |
| Cash flow from operating activities | |||||
| before changes in working capital | 48,502 | 34,642 | 89,474 | 64,776 | 129,688 |
| Cash flow from changes in working capital: | |||||
| Increase $\left(\text{-}\right)$ decrease $\left(\text{+}\right)$ in inventories | $-5,165$ | $-201$ | $-6,343$ | 2,679 | 9,955 |
| Increase $\left(\text{-}\right)$ decrease $\left(\text{+}\right)$ in operating receivables | $-136$ | $-4,366$ | $-8,727$ | $-1.946$ | $-8,821$ |
| Increase $(+)$ decrease $(-)$ in operating liabilities | $-149$ | $-997$ | $-2,164$ | 419 | 8,250 |
| Cash flow from operating activities | 43,053 | 29,077 | 72,241 | 65.929 | 139,072 |
| Investing activities | |||||
| Acquisition of intangible assets | $-7,763$ | $-10,518$ | $-11,973$ | $-17,639$ | $-34,322$ |
| Acquisition of property, plant and equipment | $-2.912$ | $-1,562$ | $-4,760$ | $-2,607$ | $-13,218$ |
| Acquisition of financial assets | $-791$ | $\Omega$ | $-890$ | $-20,620$ | |
| Sale of financial assets | 626 | $\blacksquare$ | 1,113 | $\blacksquare$ | 435 |
| Cash flow from investing activities | $-10,048$ | $-12,871$ | $-15,620$ | $-21,137$ | $-67,726$ |
| Financing activities | |||||
| Dividend to shareholders | $-80,893$ | $-80,893$ | $-80,893$ | $-80,893$ | $-80,893$ |
| Repayment of loans | $-46$ | $-64$ | $-88$ | $-165$ | $-259$ |
| Cash flow from financial activities | $-80.939$ | $-80.957$ | $-80.981$ | $-81,058$ | $-81,152$ |
| Cash flow for the period | 47.934 | $-64,750$ | $-24.361$ | $-36,266$ | $-9,807$ |
| Cash and cash equivalents opening balance | 152,097 | 163,479 | 128,622 | 134,885 | 134,885 |
| Exchange differences in liquid assets | $-2,526$ | 843 | $-2,625$ | 952 | 3,544 |
| Cash and equivalents closing balance | 101,637 | 99,572 | 101,637 | 99,572 | 128,622 |
| Additional information: | |||||
| Adjustments for non-cash items | |||||
| Depreciations and impairments | 9,031 | 12,786 | 17,295 | 23,473 | 43,825 |
| Other items | 2.663 | $-3.054$ | 370 | $-4,688$ | $-1,176$ |
| Total | 11.694 | 9,732 | 17,665 | 18,785 | 42,649 |
| 2017-04-01 | 2016-04-01 | 2017-01-01 2016-01-01 2016-01-01 | |||
|---|---|---|---|---|---|
| Amounts in SEK thous ands | 2017-06-30 | 2016-06-30 | 2017-06-30 2016-06-30 2016-12-31 | ||
| Net sales | 585 | 567 | 1,175 | 1,132 | 2,287 |
| Administrative expenses | $-4,771$ | $-4,417$ | $-9,368$ | $-9,606$ | $-19,227$ |
| Research and development costs | $-803$ | $-600$ | $-1,526$ | $-1,171$ | $-2,077$ |
| Other operating items | $\mathbf{1}$ | 91 | 30 | 24 | -86 |
| Operating expenses | $-5,574$ | $-4,926$ | $-10,865$ | $-10,752$ | $-21,389$ |
| Operating profit/loss | $-4,989$ | $-4,359$ | $-9,690$ | $-9,621$ | $-19,103$ |
| Profit/loss from financial investments: | |||||
| Interest income from receivables from group companies | 145 | ||||
| Interest expense from liabilities to group companies | -656 | $-615$ | $-1,311$ | $-1.226$ | $-2,581$ |
| Result from participations in group companies | ٠ | 2.793 | 2,793 | ||
| Other interest and similar income | 2.212 | 3,492 | 2.218 | 1 | |
| Other interest and similar expenses | $-340$ | $-340$ | $-2,578$ | ||
| Group contribution received | ٠ | 85,500 | |||
| Financial net income | 1,555 | -954 | 2,180 | 3,445 | 83,281 |
| Profit/loss before income tax | $-3,434$ | $-5,314$ | $-7,510$ | $-6,175$ | 64,178 |
| Tax expenses | 274 | 1,419 | 274 | 1,419 | 1,574 |
| Total profit/loss for the period | $-3,159$ | $-3,894$ | $-7,235$ | $-4,756$ | 65,753 |
| STATEMENT OF COMPREHENSIVE INCOME PARENT | |||||
| Total profit/loss for the period | $-3,159$ | $-3,894$ | $-7,235$ | $-4,756$ | 65,753 |
| Other comprehensive income: Components that may be reclassified to net income: Translation differences related to non Swedish subsidiaries |
|||||
| Total comprehensive income, parent | $-3,159$ | $-3,894$ | $-7,235$ | $-4,756$ | 65,753 |
| Amounts in SEK thous ands | 2017-06-30 | 2016-12-31 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | ||
| Patents and licenses | 9,645 | 9,243 |
| Financial assets | ||
| Investments in group companies | 469,271 | 469,271 |
| Receivables from group companies | 11,852 | 12,599 |
| Shares in associated companies | 19,284 | 19,284 |
| Deferred tax as set | 40,120 | 39,846 |
| 540,526 | 540,999 | |
| Total non-current assets | 550,171 | 550,242 |
| Current assets | ||
| Current receivables | ||
| Receivables from group companies | 2,885 | 72,419 |
| Other receivables | 256 | 386 |
| Prepaid expenses and accrued income | 766 | 1,067 |
| 3,907 | 73,872 | |
| Cash and cash equivalents | 1,533 | 1,392 |
| Total current assets | 5,440 | 75,264 |
| TOTAL ASSETS | 555,612 | 625,506 |
| EQUITY, PROVISIONS AND LIABILITIES | ||
| Equity | ||
| Restricted equity | ||
| Share capital | 89,953 | 89,953 |
| 89,953 | 89,953 | |
| Unrestricted equity | ||
| Fair value reserve | ||
| Retained earnings | 392,507 | 407,647 |
| Profit/loss for the year | $-7,235$ | 65,753 |
| 385,272 | 473,400 | |
| Total equity | 475,225 | 563,353 |
| Current liabilities | ||
| Other financial liabilities | ||
| Trade payables | 419 | 1,240 |
| Liabilities to group companies | 75,652 | 55,502 |
| Other current liabilities | 122 | 122 |
| Accrued expenses and prepaid income | 4,194 | 5,289 |
| 80,387 | 62,153 | |
| TOTAL EQUITY, PROVISIONS AND LIABILITIES | 555,612 | 625,506 |
| Pledged assets | 22,500 | 22,500 |
| Contingent liabilities |
The Group reporting of Biotage is based on International Financial Reporting Standards as adopted by the EU. The Group's interim report is prepared in accordance with IAS 34 Interim Reporting and the Swedish Accounting Act. The parent company's interim report is prepared in accordance with the Swedish Accounting Act and The Swedish Financial Reporting Board's recommendation RFR 2 Reporting for Legal Entities. The Group and the parent company have applied the same accounting principles and calculation methods in the interim report as in the latest annual report. Information according to IAS 34 Interim Reporting is given in notes as well as in other places in the interim report. Changed and new standards and interpretations from IASB and IFRS Interpretations Committee which have come into effect and apply to the fiscal year 2017 have not had any effect on the Group's financial reporting.
For balance sheet items figures in brackets refer to the value at the end of the corresponding period last year. For result and cash flow items the corresponding period last year is referred to.
Biotage has a financial asset of 1.0 MSEK measured as fair value concerning an option to acquire all outstanding shares in Chreto Aps. Biotage owns 22 percent of Chreto. Calculations of fair value are based on level 3 in the fair value hierarchy, which means that fair value has been established according to a valuation model where essential inputs are based on unobservable data.
Other financial assets and financial debts are measured according to accrued acquisition value and the value reported for these is considered to be a good approximation of fair value.
In the preparation of the Group's and the parent company's interim reports, the same accounting principles and calculation methods were applied as in the preparation of the Annual Report for 2016. These are described on pp. 43-50 in the Annual Report.
For a summary of definitions of the key ratios and financial metrics used in the Group's financial reporting, see Biotage's Annual Report 2016, page 34.
In this report Biotage discloses information that the corporate management uses to assess the development of the Group. Some of the financial metrics presented are not defined according to IFRS. The company believes that these metrics give valuable supplementary information to stakeholders and corporate management, as they contribute to the evaluation of relevant trends and the company's performance. As not all companies calculate financial metrics in the same way, they are not always comparable with the metrics used by other companies. These financial metrics should thus not be seen as a substitute for metrics defined according to IFRS.
Effective July 3, 2016 ESMA's guidelines on "alternative performance measures" are applied, which means increased information demands concerning financial metrics not defined by IFRS. An explanation of the financial metrics that Biotage finds relevant according to the new guidelines is given below.
As the major part of the Group's income is paid in other currencies than the accounting currency SEK, the reported sales are affected to a relatively high degree by exchange rate variations between the periods. In order for stakeholders and corporate management to be able to analyze the sales development cleared of currency effects the company reports the sales development in relation to the comparative period at constant exchange rates. The current period's sales in the respective currencies are recalculated according to the exchange rates used in the reporting of the comparative period.
| Sales change in % | Apr 1 2017- Apr 1 2016- Jun 30 2017 Jun 30 2016 |
Jan 1 2017- Jun 30 2017 |
Jan 1 2016- Jun 30 2016 |
|
|---|---|---|---|---|
| $\frac{9}{6}$ | $\frac{9}{6}$ | $\frac{9}{6}$ | $\frac{9}{6}$ | |
| Sales at comparable exchange rates | 15.8 | 11.1 | 14.0 | 10.3 |
| Currency effects | 4.7 | $-1.1$ | 4.6 | $-0.2$ |
| Reported change | 20.5 | 10.0 | 18.6 | 10.1 |
In order for stakeholders and corporate management to be able to follow and analyze the Group's financial strength, information on the Group's net cash is reported defined as cash reduced by liabilities to credit institutions.
| Net cash | June 30 2017 | June 30 2016 |
|---|---|---|
| Cash | 101,637 | 99,572 |
| Liabilities to credit institutions | 0 | 0 |
| Net cash | 101,637 | 99, 572 |
Biotage has chosen to report graphs of the net sales and the operating result on a rolling 12 month basis as corporate management also follows the development over time on a rolling 12 month basis and believes that this provides supplementary information to the calendar-based interim data otherwise given in the report.
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