Earnings Release • Oct 12, 2012
Earnings Release
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Regulated information | Trading update, third quarter 2012
Waregem (Belgium) / Rotterdam (the Netherlands)1 , 12 October 2012 (7:30 a.m.) – In the third quarter of 2012, Arseus's consolidated turnover increased by 4.5% (5.1% at constant exchange rates) to €121.9 million. Organic growth amounted to 5.4% (6.0%). In the first nine months of 2012, consolidated turnover increased by 11.7% (11.8%) to €390.2 million. Organic growth amounted to 5.1% (5.2%).
| x 1,000 euros | Q3 2012 | Q3 2011 | Total growth | Org. growth |
|---|---|---|---|---|
| Fagron | 65,536 | 61,251 | +7.0% | +8.7% |
| Arseus Dental | 34,908 | 34,536 | +1.1% | +1.1% |
| Arseus Medical | 12,353 | 12,629 | -2.2% | -2.2% |
| Corilus | 9,138 | 8,253 | +10.7% | +10.7% |
| Total | 121,935 | 116,669 | +4.5% | +5.4% |
The evolution of turnover 2 per division is as follows:
| x 1,000 euros | 9M 2012 | 9M 2011 | Total growth | Org. growth |
|---|---|---|---|---|
| Fagron | 206,601 | 170,055 | +21.5% | +7.6% |
| Arseus Dental | 118,519 | 116,143 | +2.0% | +2.0% |
| Arseus Medical | 38,096 | 38,446 | -0.9% | -0.9% |
| Corilus | 26,990 | 24,759 | +9.0% | +9.0% |
| Total | 390,207 | 349,403 | +11.7% | +5.1% |
Ger van Jeveren, CEO of Arseus: 'In the third quarter of 2012, Arseus once again recorded a solid result, with organic growth of 5.4%. This illustrates the successful execution of our innovation strategy. The focus on our own brands and the development of innovative concepts and solutions with substantial added value has meant that Arseus has suffered little, if at all from the continually changing economic circumstances. We therefore are confident about the future and confirm the expectations we announced earlier for 2012 as a whole. For 2012, we expect healthy organic growth and profitability that is once again to grow faster than turnover.'
1 This press release was sent out by Arseus NV and Arseus BV.
2 Unaudited management figures.
Fagron grew by 7.0% in the third quarter (+8.1% at constant exchange rates) to €65.5 million. Organic growth amounted to 8.7% (+9.9% at constant exchange rates). Fagron's strong results confirm the success of its strategy, focusing on optimisation and innovation of pharmaceutical compounding. As part of this strategy, Fagron continually develops and introduces new products and concepts in order to meet the growing worldwide need for tailor-made medication.
Fagron will further strengthen its market leadership in the fast-growing market for pharmaceutical compounding via an active buy-and-build strategy, the start-up of greenfield operations and a robust organic growth. The emphasis is on acquisitions in Europe and North and South America.
The turnover of Arseus Dental increased by 1.1% in the third quarter, to €34.9 million. This increase was due partly to growing demand for three-dimensional dental imaging equipment. The investment behavior of Dutch dentists has improved anticipating the decision to discontinue the trial with the liberalised dentists' charges in the Netherlands on 1 January 2013. At present, it is too early to say whether there is a structural market recovery in the Netherlands.
Arseus Medical's turnover decreased by 2.2% in the third quarter to €12.4 million. Arseus Medical once again successfully introduced new medical products and concepts during the third quarter. However, this did not fully offset the phase-out of the activities of incontinence products. Arseus Medical Netherlands and the activities directed at ophthalmologists and bandagists in Belgium had a strong third quarter. In line with the innovation strategy, a new miniaturised laparoscopic stapler from Cardica will be introduced to the market in the fourth quarter of 2012.
Corilus grew by 10.7% in the third quarter, to €9.1 million. This impressive result can be explained by further strengthening of Corilus's market leadership in Belgium, France and the Netherlands and by the continuous development and introduction of new software solutions for medical professionals.
Based on the current view and the existing Arseus portfolio, for 2012 as a whole the management is expecting healthy organic growth and profitability that is expected to once again grow faster than turnover.
Ger van Jeveren (CEO) and Jan Peeters (CFO) will provide further details on the trading update for the third quarter of 2012 during a conference call scheduled for today. The conference call
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3 This press release contains data related to the future based on the current internal estimates and forecasts in addition to market forecasts. The statements concerning the future contain inherent risks and are only applicable on the date on which they are issued. There may be substantial differences between the actual results and the results cited in the statements about the future.
starts at 9:30 CET. You can join from 09:15 CET onwards by calling +31 10 713 72 95 (Netherlands) or +32 24 01 53 07 (Belgium).
From 10:30 onwards the conference call may be listened to by calling telephone number +31 20 713 34 87 and typing in access code 410267#. From Tuesday, 16 October, the conference call may be listened to or downloaded from the corporate website of Arseus (www.arseus.com).
The annual figures for 2012 will be published at 7.30 a.m. on 6 February 2013. Ger van Jeveren (CEO) and Jan Peeters (CFO) will explain the annual figures in more detail on 6 February 2013. This conference call starts at 9:30 a.m.
Constantijn van Rietschoten Director of Corporate Communications +31 88 33 11 222 (Office) +31 6 536 91 585 (Mobile) [email protected]
Arseus is a multinational group of companies that supplies products, services and concepts to professionals and institutions in the healthcare sector in Europe and North and South America. Arseus is subdivided into four divisions and operates in the markets for pharmaceutical compounding for pharmacies, dental products, medical and surgical products, and medical ICTsolutions. The Belgian company Arseus NV is located in Waregem, and is listed on NYSE Euronext Brussels and NYSE Euronext Amsterdam. The operational activities of the Arseus group are driven by the Dutch company Arseus BV. The head office of Arseus BV is located in Rotterdam.
In the event of any discrepancy between the English translation and the original Dutch version of this press release, the latter shall prevail.
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