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Fagron N.V. — Earnings Release 2008
Oct 14, 2008
3949_iss_2008-10-14_c66ff352-b1d5-4012-9285-c34940b5c9a2.pdf
Earnings Release
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14 OCTOBER 2008
REGULATED INFORMATION TRADING UPDATE Q3
ARSEUS REALIZES 17.8% TURNOVER GROWTH
ORGANIC GROWTH ACCELERATES TO 8.6%
MARKET SHARE STRENGTHENED DUE TO INNOVATION
Waregem (Belgium), 14 October 2008 – Arseus' consolidated turnover was 80.6 million euros in the third quarter, 17.8% higher than the consolidated turnover figure for the equivalent period last year. Organic growth was 8.6%. This strong organic growth confirms Arseus' ability to further strengthen its market share each quarter in the European healthcare sector which is not affected by cyclical trends.
The evolution of turnover by reporting segment is as follows:
| Unaudited management figures (in millions of euros) | |||||||
|---|---|---|---|---|---|---|---|
| Q3 2008 | Q3 2007 | evolution | organic growth | ||||
| Fagron | 31.2 | 25.9 | +20.5% | +10.6% | |||
| Arseus Dental | 32.4 | 24.6 | +31.7% | +15.8% | |||
| Arseus Medical | 10.8 | 11.6 | -6.9% | -6.9% | |||
| Corilus | 6.2 | 6.3 | -1.6% | -1.6% | |||
| TOTAL | 80.6 | 68.4 | +17.8% | +8.6% |
Unaudited management figures (in millions of euros)
| 9M 2008 | 9M 2007 | evolution | organic growth | |
|---|---|---|---|---|
| Fagron | 97.8 | 76.7 | +27.5% | +10.2% |
| Arseus Dental | 101.2 | 82.3 | +23.0% | +12.5% |
| Arseus Medical | 33.1 | 36.4 | -9.1% | -9.1% |
| Corilus | 18.9 | 18.7 | +1.1% | +1.1% |
| TOTAL | 251.0 | 214.1 | +17.2% | +7.4% |
NOTES BY DIVISION
FAGRON
In the third quarter, Fagron grew by 20.5%. Besides good progress having been made on the integration of Tamda and Unikem (active in Denmark, turnover approx. 3 million euros, consolidated as of 1 August), organic growth was 10.6%. The strong growth of turnover in the first six months of 2008 continued in the third quarter. This confirms the success of Fagron's core values: innovation, quality and a focus on solutions. Fagron continuously has a well-filled pipeline of innovative products which will be introduced on the market through more intensive sales and marketing activities.
In the third quarter, Fagron strengthened its market position in all countries where it operates. The Fagron organizations in the Netherlands, Belgium, Spain and Italy achieved double-digit turnover growth. Turnover in greenfield activities in France and the United Kingdom continues to show an upward trend.
ARSEUS DENTAL
Arseus Dental achieved 31.7% growth of turnover in the third quarter. Organic growth was 15.8%, which was significantly above market growth, confirming yet again that Arseus Dental's strategy is bearing fruit.
ARSEUS MEDICAL
Turnover at Arseus Medical fell by 6.9% in the third quarter of 2008. The decline in turnover in Belgium was mainly due to amended Belgian legislation relating to wheelchairs (hire instead of purchase).
CORILUS
In the third quarter, Corilus' turnover fell by 1.6%. The launch of new software packages (Greenock and Baltes) starting in the fourth quarter has shifted the sales moment. However, the management expects that these innovative new software packages will strengthen Corilus' competitiveness towards pharmacies and dentists.
SHARE BUYBACK
The Extraordinary Meeting of Shareholders of 7 September 2007 has authorized the Board of Directors to buy back shares. This authorization was renewed at the Extraordinary Meeting of Shareholders on 9 June 2008.
In the third quarter of 2008, Arseus bought back 347,467 shares at an average purchase price of € 8.06 per share. In the first nine months of 2008, Arseus bought back 876,825 shares in total.
OUTLOOK1
Organic growth was 8.6% in the third quarter. This strong growth of turnover confirms the management in its conviction to strengthen Arseus' unique position in the European market of healthcare products and services. Its strong competitiveness, its ability to continue its role as a consolidator and its excellent track record will enable Arseus to realize its turnover target of 500 million euros in 2010.
At the publication of this interim report, Arseus has not felt any material impact from the present macro-economic climate on its operations, its liquidity position, solvency or profitability compared to the first six months of 2008.
FINANCIAL CALENDAR
On Friday 17 October, Arseus is organizing an Investors' Day in Brussels. For information about this Investors' Day, please contact Constantijn van Rietschoten. His contact details are at the bottom of this press release.
Arseus will publish its trading update for the fourth quarter of 2008 on 13 January 2009 at 7:30 am.
In compliance with the Royal Decree of 14 November 2007, Arseus states that the foregoing interim statement has been prepared by the Executive Committee of the Company.
This is a translation of the Dutch press release; the Dutch press release prevails.
For more information:
Constantijn van Rietschoten, Investor Relations Manager +31 88 33 11 211 (office) +31 6 536 91 585 (mobile) [email protected]
1 This press release contains future-looking information based on the present internal estimates and expectations, as well as on market forecasts. The future-looking statements contain inherent risks and are only valid on the date on which they are issued. The actual results may differ materially from those included in the future-looking statements.