PharmiWeb.com - Global Pharma News & Resources
13-May-2019

aap: Good start to 2019 with significant sales growth (+26%) and substantially improved EBITDA (+37%)

DGAP-News: aap Implantate AG / Key word(s): Quarterly / Interim Statement

13.05.2019 / 09:50
The issuer is solely responsible for the content of this announcement.


aap Implantate AG ("aap") made a successful start to financial year 2019 with significant sales growth and substantially improved EBITDA. The company increased sales in the first quarter of 2019 on the corresponding period in the previous year by 26% to EUR 3.5 million (Q1/2018: EUR 2.8 million). Thereby aap realized a value above the forecast provided in January of EUR 2.0 million to EUR 3.0 million. With a view to EBITDA, the company recorded a substantial year-on-year improvement in the first quarter of 2019 (+37%) to EUR -1.0 million (Q1/2018: EUR -1.6 million). Consequently, EBITDA were also above the guidance of EUR -1.8 million to EUR -1.2 million.
 

Q1/2019 - Major Results and Progress
 

- Sales by region: Double-digit growth rates in all regions: Germany (+15%), international business (+28%) and North America (+22%)

- Gross margin and costs: Improvement of gross margin[1] to 85% (Q1/2018: 79%) primarily due to continued focus on high margin markets and improved product/customer mix; decrease in total costs

- Cash flow and balance sheet: Cash need in Q1/2019 totalled EUR 1.6 million with further positive effects of working capital reduction; cash holdings of EUR 5.3 million[2]; first-time application of IFRS 16 Leases leads to shifts in balance sheet, income statement and cash flow

- LOQTEQ(R): Focus on polyaxial fixation technology, plate systems for foot and ankle area as well as sterile packaging for implants; further focus on adaptation of processes and documents to new regulatory requirements

- Silver coating technology: Exchange with BfArM following submission of application to conduct a human clinical study at the end of 2018; applications submitted to ethics commissions with first positive feedback; preparation of corresponding application for FDA with submission as next step; global orthopaedic companies reaffirmed interest in silver coating technology


Q1/2019 - Financials
 

Sales

In KEUR Q1/2019 Q1/2018 Change on year
Trauma
Germany
North America
North America distributors
North America global partners

International (without North America)
Europe (without Germany)
BRICS states
Total key markets
Rest
3,451
752
646
630
16

2,053
654
821
1,475
578
2,797
656
531
513
18

1,610
502
738
1,240
370
+23%
+15%
+22%
+23%
-11%

+28%
+30%
+11%
+19%
+56%
Other +49 -15 >+100%
Sales 3,501 2,782 +26%
 

With a view to the sales development, all regions contributed with double-digit growth rates to the realised sales increase. aap was able to maintain the last financial year's momentum in Germany (+15%) and in international business (+28%) in the first quarter of 2019 as well and thereby recorded sustainable growth. In North America sales development was stabilised (+22%). This shows that the measures initiated in financial year 2018 are starting to have an effect.
 

EBITDA

In KEUR Q1/2019 Q1/2018 Change on year
EBITDA -998 -1,588 +37%
 


As a result of the higher gross margin and decreased total costs, EBITDA in the first quarter of 2019 improved substantially (+37%) on the corresponding period in the previous year to EUR -1.0 million (Q1/2018: EUR -1.6 million), thereby reflecting the aimed development: a focus on established markets with higher profit margins and simultaneous a disciplined cost management to improve operational performance. These areas of activity are of central significance for the management in the financial year 2019.
 

In connection with the package of measures adopted in April to strengthen the financial base aap recently successfully completed a capital increase with subscription rights with gross issuing proceeds of around EUR 3.5 million. With the cash inflow from the capital increase and two further external financings aap has approx. EUR 5.2 million at its disposal that the company will use to finance its planned sales growth and the further development of its pioneering and innovative silver coating technology.
 

Outlook for Q2/2019

For the second quarter of 2019 aap anticipates sales of EUR 2.5 million to EUR 3.5 million as well as normalized (recurring) EBITDA (before one-time effects) of EUR -1.6 million to EUR -1.0 million respectively reported EBITDA (incl. one-time effects) of EUR -2.1 million to EUR -1.5 million.




[1] Relating to sales revenues, changes in inventories of finished and unfinished products and cost of materials / purchased services.
[2] In the consolidated balance sheet of 03/31/2019 EUR 2.7 million is stated as cash and cash equivalents, while cash with banks totalling EUR 2.6 million is shown under current and non-current other financial assets as it was pledged to secure financial liabilities respectively cash payments were made to secure bank guarantees granted to third parties.

-------------------------------------------------------------------------------------------------------------------------------------------
aap
Implantate AG (ISIN DE0005066609) - Prime Standard/Regulated Market - All German stock markets -

About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma products for orthopaedics. The IP protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) and trauma complementary biomaterials a wide range of cannulated screws as well as standard plates and screws. Furthermore, aap Implantate AG has an innovation pipeline with promising development projects as the antibacterial silver coating technology and magnesium based implants. These technologies address critical problems in surgery that haven't yet been resolved adequately. In German-speaking Europe aap Implantate AG directly sells its products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 25 countries at the international level. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.

Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.

For inquiries please contact:
aap Implantate AG; Fabian Franke; Investor Relations; Lorenzweg 5; D-12099 Berlin Tel.: +49/30/750 19 - 134; Fax.: ++9/30/750 19 - 290; f.franke@aap.de



13.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: aap Implantate AG
Lorenzweg 5
12099 Berlin
Germany
Phone: +49 (0) 30 75 01 90
Fax: +49 (0) 30 75 01 91 11
E-mail: info@aap.de
Internet: www.aap.de
ISIN: DE0005066609
WKN: 506660
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 810231

 
End of News DGAP News Service

Editor Details

Last Updated: 13-May-2019