Earnings Release • Aug 25, 2021
Earnings Release
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Louvain-la-Neuve, Belgium, 25 August 2021 - IBA (Ion Beam Applications SA), the world leader in particle accelerator technology, today announces its consolidated results for the first half of 2021.
| H1 2021 (EUR 000) |
H1 2020 (EUR 000) |
Variance (EUR 000) |
Variance % |
|
|---|---|---|---|---|
| Net Sales | 137 183 | 109 733 | 27 450 | 25.0% |
| PT & Other Accelerators | 110 758 | 85 541 | 25 217 |
29.5% |
| Dosimetry | 26 425 | 24 192 | 2 233 | 9.2% |
| REBITDA | 5 745 | -3 983 | 9 728 | |
| % of Sales | 4.2% | -3.6% | ||
| REBIT | 674 | -9 940 | 10 614 | |
| % of Sales | 0.5% | -9.1% | ||
| Profit Before Tax |
-843 | -11 826 | 10 983 | |
| % of Sales | -0.6% | -10.8% | ||
| NET RESULT | -1 935 | -12 043 | 10 108 | |
| % of Sales | -1.4% | -11.0% |
Olivier Legrain, Chief Executive Officer of IBA commented: "Our focus on execution in the first half has resulted in impressive sales growth and a strong improvement in REBIT. Whilst the challenges from COVID-19 continue to impact the business, the Group's resilience is evident. With a very strong order intake for Other Accelerators and good momentum in Proton Therapy and Dosimetry we are confident in maintaining our solid performance in the second half and beyond.
Press release | August 25, 2021
IBA | Ion Beam Applications SA Chemin du Cyclotron, 3 | 1348 Louvain-la-Neuve | Belgium | RPM Brabant-wallon VAT : 0428.750.985 | T +32 10 47 58 11 | F +32 10 47 58 10 [email protected] | iba-worldwide.com
1
"Looking regionally, Asia continues to be an area of paramount strategic importance for IBA, but we have also made progress elsewhere, with new sales in the US and in emerging markets. We are also seeing potential for IBA in the growing space of theranostics and we continue to develop our position in this exciting market. Finally, our firm commitment to a stakeholder approach and to meeting our ambitious ESG goals is reflected in our recent B-Corp certification.
"With our increasingly strong balance sheet, IBA will continue to invest in the emerging technologies of the future whilst seeking value-enhancing business development opportunities as we look to drive long-term sustainable growth."
▪ Initiation of global DynamicARC®1 Consortium for the roll-out of Proton Arc Therapy
Olivier Legrain, Chief Executive Officer, and Soumya Chandramouli, Chief Financial Officer, will host a conference call and webcast, conducted in English, to present the half year results, followed by a Q&A session.
This conference call will be held today, Wednesday, 25 August 2021, at 3pm CEST / 2pm BST / 9am EDT / 6am PDT as a Teams webinar and can be accessed online on this link. If you would like to join by phone only, please dial (Phone conference ID 646 384 377#):
| Belgium: | +32 2 890 97 20 |
|---|---|
| UK: | +44 20 3321 5200 |
| NL: | +31 20 708 6901 |
| LU: | +352 27 87 00 02 |
| US: | +1 347-991-7591 |
| FR: | +33 1 70 99 53 51 |
The presentation will be available on IBA's investor relations website and on: https://www.iba-worldwide.com/content/half-year-2021-results-press-release-and-web-conference shortly before the call.
To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled webcast.
For participants who do not have the Teams application installed, please follow the process described in this link to access the conference.
Press release | August 25, 2021
1 DynamicARC is a registered brand of the IBA's Proton Arc therapy solution currently under research and development phase. It will be available for sale when regulatory clearance is received.
Financial calendar ASTRO Capital Markets Day 24-27 October 2021 (TBC) Business Update Q3 18 November 2021 Full Year Results 24 March 2022
IBA (Ion Beam Applications S.A.) is the world leader in particle accelerator technology. The company is the leading supplier of equipment and services in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA is also a leading player in the fields of industrial sterilization, radiopharmaceuticals and dosimetry. The company, based in Louvain-la-Neuve, Belgium, employs approximately 1,500 people worldwide. IBA is a certified B Corporation (B Corp) meeting the highest standards of verified social and environmental performance.
IBA is listed on the pan-European stock exchange EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB).
More information can be found at: www.iba-worldwide.com
*Proteus®ONE and Proteus®PLUS are brand names of Proteus 235
Soumya Chandramouli Chief Financial Officer +32 10 475 890 [email protected]
Olivier Lechien Corporate Communication Director +32 10 475 890 [email protected]
For media and investor enquiries:
Consilium Strategic Communications Amber Fennell, Angela Gray, Lucy Featherstone +44 (0) 20 3709 5700 [email protected]
Press release | August 25, 2021
| H1 2021 (EUR 000) |
H1 2020 (EUR 000) |
Variance (EUR 000) |
Variance % |
|
|---|---|---|---|---|
| Net Sales | 110 758 | 85 541 | 25 217 | 29.5% |
| Proton Therapy | 70 473 | 56 836 | 13 637 | 24.0% |
| Other Accelerators | 40 285 | 28 705 | 11 580 | 40.3% |
| REBITDA | 2 021 | -6 415 | 8 436 | |
| % of Sales | 1.8% | -7.5% | ||
| REBIT | -2 167 | -11 169 | 9 002 | |
| % of Sales | -2.0% | -13.1% |
IBA remains the global market leader in proton therapy and has continued to capitalize on its strong presence across the regions in which it operates whilst continuing to focus on the penetration of new markets as proton therapy is more widely adopted worldwide.
The Asia-Pacific region remains a core strategic growth area, particularly China. In the first half of the year a major contract was secured for a five-room Proteus®PLUS solution in China and the down payment was received post period end. IBA also continues to make solid progress elsewhere in Asia with upcoming tenders and active discussions ongoing.
There has been a resurgence in PT activity in the US and IBA has taken further steps to reinforce its presence in the region. In April IBA signed a term sheet for a Proteus ®ONE solution in Florida and contract negotiations are currently ongoing. In addition, IBA is participating in several public and private tenders currently ongoing in the region.
The Services component of our PT business is an important part of our revenue stream and a key focus for us has been on improving its contribution as a recurring element. We are also focused on continuously improving our installed base, driving further operational efficiency.
Sustainable investment in future innovative technologies is a key priority and we continue to make progress with technologies that we believe are critical to the future of PT. In June we announced the initiation of a global DynamicARC® 2 Consortium, in collaboration with leading clinical centers. DynamicARC® proton therapy potentially offers a more targeted treatment approach compared to current techniques and innovations such as this have the potential to improve the treatment options of patients, whilst reducing side effects. Our focus in the short-term is being able to offer DynamicARC® to new and existing customers as a more efficient and simple way to deliver PT.
IBA remains committed to exploring and developing paradigm shifting technologies like FLASH Therapy. In June, at the PTCOG Congress, IBA introduced ConformalFLASH®(2) , a novel method to deliver FLASH Therapy while keeping the benefits of the Proton Bragg Peak properties. IBA works with key knowledge leaders, who explore and demonstrate the science that will allow clinical adoption in the future. FLASH Research on IBA's systems at Penn's Roberts Proton Therapy Center was recently recognized by a Best in Physics award by the American Association for Physics in Medicine (AAPM)3 .
In August, IBA announced that it had joined a European Union consortium of 19 industry and academic partners to validate a model-based approach for the use of proton therapy treatment in esophageal and cancer more broadly. The "ProtectTrial" will enrol approximately 400 patients and be carried out at twelve proton therapy centers, with six IBA sites involved.
Momentum in Other Accelerators has continued from 2020 with 14 new sales and solid backlog conversion resulting in equipment revenue increasing to EUR 30.1 million. The sales have been made on a global scale expanding into several new geographies, with China remaining a major
Press release | August 25, 2021
2 ConformalFLASH® is a registered brand of IBA's Proton FLASH irradiation solution currently under development. DynamicARC® is the registered brand name of a specific beam delivery technology currently under development by IBA. Both will be available for sale when regulatory clearance is received.
3 https://physicsworld.com/a/best-in-physics-multidimensional-mri-and-flash-proton-therapy/
market and sales in Europe, North and South America, Asia and Africa. IBA secured three additional contracts post-period and the pipeline remains strong, demonstrating IBA's clear leadership in all segments of this business line. 13 new installations started during the period and close to 20 systems are also expected to be delivered to customers this year, across the RadioPharma and Industrial businesses, with strong backlog conversion expected to continue into the second half.
IBA's leading RadioPharma business develops integrated equipment and service solutions for the production of radiopharmaceuticals for diagnostic imaging and therapy in oncology, neurology and cardiology. The nuclear medicine market has shown constant growth, increasing by nearly 6% per year over the last seven years4 , and diagnostics and therapeutic applications in the medical world that use IBA equipment continue to increase.
IBA recently launched its new high energy and high-capacity cyclotron, the Cyclone® IKON, which offers the largest energy spectrum for PET and SPECT isotopes and enhanced availability of theranostic radiopharmaceuticals. Theranostics has evolved rapidly in recent years, combining diagnosis and targeted radiotherapy and offering an important alternative in the treatment of many cancers. The market for this treatment modality is rapidly growing and represents a significant opportunity for IBA.
In March IBA announced an expanded collaboration with NorthStar Medical Radioisotopes to increase global availability of technetium-99m (Tc-99m), the most widely used medical radioisotope for diagnostics in the world.
IBA Industrial provides leading industrial solutions to the ion beam sterilization industry. Our Rhodotron® solution continues to create strong interest in the global market, offering a cleaner alternative to cobalt and ethylene oxide for sterilization, bringing a new perspective to sterilization processes. IBA's new generation Rhodotron® TT1000 enables the production of X-rays to sterilize in much larger volumes, in particular for medical devices.
Press release | August 25, 2021
4 MEDraysintell Nuclear Medicine Report & Directory www.medraysintell.com
| H1 2021 (EUR 000) |
H1 2020 (EUR 000) |
Variance (EUR 000) |
Variance % |
|
|---|---|---|---|---|
| Net sales | 26 425 | 24 192 | 2 233 | 9.2% |
| REBITDA | 3 724 | 2 432 | 1 292 | 53.1% |
| % of Sales | 14.0% | 10.1% | ||
| REBIT | 2 841 | 1 229 | 1 612 | 131.2% |
| % of Sales | 10.8% | 5.1% |
IBA is firmly committed to impactful environmental, social and governance goals. The Group's first major step towards a new sustainable stakeholder approach began this year with the Company receiving B Corp certification in June. IBA has joined a community of around 4,000 companies globally that believe in companies being a "force for good", transforming businesses to contribute to a more sustainable economy.
IBA's B Corp status marks a starting point for the Group which will be driven by a strong ethical culture, underlined by a commitment to contribute, in a transparent manner, to the development of an inclusive and sustainable economy. In terms of specific ESG criteria, IBA aims to be carbon neutral by 2030 and will invest in future technologies and products that will further improve sustainability. Alongside this, IBA will continue to make a significant impact in the diagnosis and
treatment of cancer, cardiovascular and neurodegenerative disorders whilst providing a safe, equitable and rewarding work environment for employees.
Group revenue in the year was EUR 137.2 million, a 25% increase from H1 2020, largely driven by increased activity versus the same period last year, despite the effects of the pandemic continuing into 2021. Order intake has been good in all businesses in 2021 and backlog conversion has started to recover, converting orders to revenue.
Gross margin in absolute value as well as a percentage of sales improved, rising to EUR 45.1 million in H1 2021 (H1 2020: EUR 34.9 million), driven by product mix, cost strategy deployment and stringent cost management. Operating expenses remained stable, beating inflation as cost containment measures were maintained over H1 2021.
The recurring operating profit before interest and taxes (REBIT) line increased substantially to EUR 0.7 million from a loss of EUR 9.9 million, as a result of the increase in group revenue and margin improvement.
Other operating income of EUR 0.4 million was mainly impacted by costs related to share-based payment plans for employees. The net financial result of EUR 0.4 million predominantly included interest on credit lines and foreign exchange fluctuations compensated by interest accrued on a long-term customer receivable in Proton Therapy. Taxes were impacted by current tax credits in certain countries.
As a result of the above, IBA reported a net loss of EUR 1.9 million compared with a net loss of EUR 12.0 million for H1 2020.
Operating cash flow in H1 2021 was EUR 13.9 million, driven by close management of working capital and continuing payment from customers, as backlog conversion progressed.
Cash flow used in investing activities was EUR 0.2 million. The reduction was due to lower capex investments to maintain ongoing projects in comparison to last year and the release of a deferred payment following the final completion of the sale of Radiomed.
Cash flow used in financing activities was EUR 22.7 million, which included the dividend paid on 2020 results, repayments on bank borrowings and the acquisition of treasury shares.
The balance sheet significantly strengthened again, with a net cash position at H1 2021 of EUR 68.5 million compared with EUR 65.2 million at the end of 2020. As of today, IBA has an (unaudited) net cash position of more than EUR 110 million.
Despite the ongoing challenges associated with the global pandemic there has been an encouraging increase in activity, alongside a continued resilience across all business lines and we have continued to perform solidly across the board.
Whilst some slowdown remains in certain regions as a result of ongoing restrictions, the revival of activity is promising, particularly in the key market of the US. We are also encouraged by increasing activity in emerging markets.
IBA's exceptionally strong cash position will enable us to continue to invest in the technologies of the future, whilst seeking value-enhancing business development opportunities.
The overall situation with regards to the pandemic remains complex and IBA continues to be unable to provide reliable guidance. IBA remains confident for global prospects in the second half of the year and beyond, underpinned by the high backlog and healthy pipeline. The Group is firmly committed to its stakeholder approach, remaining the leader in all of its markets, to drive sustainable profitable growth.
We have compared the accounting data presented in the semi-annual press release of Ion Beam Application SA with the interim condensed consolidated financial statements as at 30 June 2021. We confirm that these accounting data do not show any significant discrepancies with the interim condensed consolidated financial statements. We have issued a review report, in which we declare that, based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as adopted for use in the European Union.
Diegem, 25 August 2021
EY Réviseurs d'Entreprises SRL Statutory auditor Represented by
Romuald Bilem* Partner *Acting on behalf of a SRL
In accordance with the Royal Decree of November 14, 2007, IBA indicates that this announcement was prepared by the Chief Executive Officer (CEO), Olivier Legrain, and the Chief Financial Officer (CFO), Soumya Chandramouli.
| HYE 2021 | YE2020 | Variance | |
|---|---|---|---|
| (EUR '000) | (EUR '000) | (EUR '000) | |
| ASSETS | |||
| Goodwill | 3 821 | 3 821 | 0 |
| Other intangible assets | 4 016 | 4 527 | -511 |
| Property, plant and equipment | 17 814 | 18 329 | -515 |
| Right-of-use assets | 28 257 | 29 266 | -1 009 |
| Investments accounted for using the equity method and other investments | 14 254 | 14 361 | -107 |
| Deferred tax assets | 7 872 | 7 797 | 75 |
| Long-term financial assets | 164 | 600 | -436 |
| Other long-term assets | 20 258 | 19 767 | 491 |
| Non-currentassets | 96 456 | 98 468 | -2 012 |
| Inventories and contracts in progress | 126 471 | 114 568 | 11 903 |
| Trade receivables Other receivables |
76 449 44 394 |
103 400 39 071 |
-26 951 5 323 |
| Short-term financial assets | 78 | 1 578 | -1 500 |
| Cash and cash equivalents | 145 277 | 153 911 | -8 634 |
| Current assets | 392 669 | 412 528 | -19 859 |
| Total assets | 489 125 | 510 996 | -21 871 |
| EQUITY AND LIABILITIES | |||
| Capital stock | 42 294 | 42 294 | 0 |
| Capital surplus | 41 978 | 41 978 | 0 |
| Treasury shares | -11 393 | -5 907 | -5 486 |
| Reserves | 14 457 | 17 152 | -2 695 |
| Currency translation difference Retained earnings |
-6 015 44 071 |
-5 569 51 883 |
-446 -7 812 |
| Capital and reserves attributable to Company's equity holders | 125 392 | 141 831 | -16 439 |
| 125 392 | 141 831 | -16 439 | |
| TOTAL EQUITY Long-term borrowings |
36 671 | 41 174 | -4 503 |
| Long-term lease liabilities | 23 352 | 24 598 | -1 246 |
| Long-term financial liabilities | 783 | 3 | 780 |
| Deferred tax liabilities | 128 | 521 | -393 |
| Long-term provisions | 8 429 | 7 879 | 550 |
| Other long-term liabilities | 18 630 | 19 278 | -648 |
| Non-currentliabilities | 87 993 | 93 453 | -5 460 |
| Short-term borrowings | 11 941 | 15 557 | - 3 616 |
| Short-term lease liabilities | 4 806 | 4 797 | 9 |
| Short-term provisions | 4 017 | 4 169 | -152 |
| Short-term financial liabilities | 2 414 | 57 | 2 357 |
| Trade payables | 35 987 | 41 858 | -5 871 |
| Current income tax liabilities | 2 907 | 2 892 | 15 |
| Other payables | 53 562 | 48 212 | 5 350 |
| Advances received on contracts in progress | 160 106 | 158 170 | 1 936 |
| Current liabilities | 275 740 | 275 712 | 28 |
| Total liabilities | 363 733 | 369 165 | -5 432 |
| Total equity and liabilities | 489 125 | 510 996 | -21 871 | |
|---|---|---|---|---|
| Selected Key Figures | ||||
| H1 2021 (EUR000) |
H1 2020 (EUR000) |
Variance (EUR000) |
Variance % |
|
| Sales and services | 137 183 | 109 733 | 27 450 | 25.0% |
| Cost of sales and services (-) | 92 110 | 74 785 | 17 325 | 23.2% |
| Gross profit/(loss) | 45 073 | 34 948 | 10 125 | 29.0% |
| 32.9% | 31.8% | |||
| Selling and marketing expenses (-) | 9 490 | 9 612 | -122 | -1.3% |
| General and administrative expenses (-) | 19 593 | 19 469 | 124 | 0.6% |
| Research and development expenses (-) | 15 316 | 15 807 | -491 | -3.1% |
| Recurring expenses (-) | 44 399 | 44 888 | -489 | -1.1% |
| Recurring profit/(loss) | 674 | -9 940 | 10 614 | 106.8% |
| 0.5% | -9.1% | |||
| Other operating result | 378 | 487 | -109 | -22.4% |
| Financial result | 406 | 678 | -272 | -40.1% |
| Share of profit/(loss) of equity-accounted companies |
733 | 721 | 12 | 1.7% |
| Profit/(loss) before tax | -843 | -11 826 | 10 983 | 92.9% |
| Tax result | 1 092 | 217 | 875 | 403.2% |
| Profit/(loss) for the period | -1 935 | -12 043 | 10 108 | 83.9% |
Press release | August 25, 2021
H1 2021 H1 2020
| (EUR '000) | (EUR '000) | |
|---|---|---|
| Cash flow from operating activities | ||
| Profit/(loss) for the period before technical recycling of CTA | -1 935 | -12 043 |
| Net profit/(loss) for the period | -1 935 | -12 043 |
| Adjustments for: | ||
| Depreciation and impairment of property, plant and equipment | 4 138 | 4 302 |
| Amortization and impairment of intangible assets | 775 | 1 177 |
| Allowance for estimated credit loss on receivables | -204 | 396 |
| Changes in fair value of financial assets (gains)/losses | 1 374 | 78 |
| Changes in provisions | 1 579 | 178 |
| Deferred taxes | -360 | -583 |
| Share of result of associates and joint ventures accounted for using the equity method | 733 | 721 |
| Other non cash items | -1 994 | -1 475 |
| Net cash flow changes before changes in working capital | 4 106 | -7 249 |
| Trade receivables, other receivables, and deferrals | 21 642 | 24 752 |
| Inventories and contract in progress | -11 209 | 11 796 |
| Trade payables, other payables, and accruals | 1 606 | -1 669 |
| Other short-term assets and liabilities | -2 826 | -528 |
| Change in working capital Income tax paid/received, net |
9 213 -627 |
34 351 -931 |
| interest (income)/expenses | 1 215 | 1 117 |
| Net cash (used in)/generated from operations | 13 907 | 27 288 |
| Cash flow from investing activities | ||
| Acquisition of property, plant, and equipment Acquisition of intangible assets |
-1 202 -262 |
-813 -1 023 |
| Disposal of fixed assets | 0 | 124 |
| Acquisition of third party and equity-accounted companies | 0 | -100 |
| Cash release on disposals of subsidiaries from previous years | 1 291 | 0 |
| Other investing cash flows | -8 | -1 |
| Net cash (used in)/generated from investing activities | -181 | -1 813 |
| Cash flow from financing activities | ||
| Proceeds from borrowings and lease liabilities | 0 | 27 686 |
| Repayment of borrowings | -8 250 | -1 500 |
| Repayment of lease liabilities | -2 740 | -2 745 |
| Interest paid/Interest received (Acquisitions)/disposal of treasury of shares |
-1 328 -5 400 |
-1 103 2 088 |
| Dividends paid | -4 579 | 0 |
| Other financing cash flows | -370 | 0 |
| Net cash (used in)/generated from financing activities | -22 667 | 24 426 |
| Net cash and cash equivalents at the beginning of the year | 153 911 | 46 090 |
| Changes in net cash and cash equivalents | -8 941 | 49 901 |
| Exchange gains/(losses) on cash and cash equivalents | 307 | -67 |
| Net cash and cash equivalents at the end of the year | 145 277 | 95 924 |
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