Biotest AG — Earnings Release 2005

Apr 19, 2005

News Details

Corporate | 19 April 2005 11:12

Biotest AG: Successful fiscal year 2004 and first quarter of 2005

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Biotest AG: Successful fiscal year 2004 and first quarter of 2005 Dreieich, April 19, 2005. The course of business in 2004 and the current year were discussed today during the annual press and analyst conference of Biotest AG – a company specializing in therapeutic products and diagnostic systems. As already reported, despite the slight sales downturn (EUR 217.9 million or 1.8%) in 2004, EBIT reported by the Biotest Group – which focuses on clinical immunology, auto-immune disease, hematology and intensive care medicine – more than doubled with growth of 141.6% to EUR 18.6 million compared to EUR 7.7 million in 2003. At the same time, the group recorded a net profit of EUR 5.0 million after a net loss of EUR 5.7 million in 2003. EUR 18.4 million of the EBIT growth stemmed from the Pharmaceutical division, whereas the EBIT recorded by the Diagnostic division was significantly lower year-on-year, down from EUR 3.1 million to EUR 0.1 million among other things as a result of extraordinary charges and advance payments for marketing the fully automated blood group device TANGO in the US. The improved earnings were mostly due to major factors – cost cuts on the one hand: – cost of sales fell by 8.3%; the materials usage ratio improved from 43% to 40.8%, – sales and marketing costs fell by 4.8% to EUR 50.0 million compared to EUR 52.5 million in 2003, – final restructuring cost were down significantly year-on-year at EUR 2.1 million (EUR 3.4 million in 2003). The improvement in earnings despite the lower level of revenues was also achieved by consciously doing without low-margin sales, on the other hand. This primarily affected the Pharmaceutical division, which recorded 2004 revenues of EUR 141.9 million, 2.8% down on the 2003 figure of EUR 146.0 million. In contrast to the markets in Asia and South America, revenues from plasma proteins on the European market were highly positive, up 11.2%; growth in sales with immuno-globulins was able to partially compensate for lower revenues from products such as human albumin and Haemoctin(R). In Germany the Pharmaceutical division recorded revenue growth of 5.2% despite the charges resulting from the mandatory discount as part of the German Health Care Structure Act (Gesundheitsstrukturgesetz) totaling EUR 1.1 million. The Diagnostic division maintained the level of revenues recorded in 2003 at EUR 76.0 million in a market characterized by tough price competition. Exchange-rate related declines in the US were offset by growth in Germany. Transfusion diagnostics again recorded the highest revenues, however the previous year’s revenues were not matched due to investment restraint in laboratories and clinics. Growth in microbiology and hygiene monitoring was particularly successful as a result of the pharmaceutical industry’s increasing demand for hygiene control systems. Transplantation diagnostics also grew positively during the past fiscal year, above all on the European market, and revenues increased slightly. Business in 2005 The positive business development also continued during the first three months of the current fiscal year. According to preliminary calculations, it was possible to increase EBIT slightly to EUR 5.3 million (Q1 2004: EUR 5.2 million) with consolidated revenues down by 3.8% to EUR 55.8 million compared to EUR 58.1 million in the previous year. This downturn will again stem from the Pharmaceutical division, where sales will be down 5.3% to EUR 36.7 million compared to EUR 38.8 million in the previous year. In contrast, it was possible to keep revenues in the Diagnostic division constant at EUR 19.1 million compared to EUR 19.3 million in Q1 2004. The final figures for the first quarter will be announced on May 10, 2005. Despite the continued tense situation on the plasma products market, we expect 2005 as a whole to bring with it slight revenue growth and a corresponding increase in pre-tax earnings. end of message, (c)DGAP 19.04.2005 —————————————————————————— WKN: 522720; ISIN: DE0005227201; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 191112 Apr 05