BRAIN on growth track in the first half-year 2016/17

• Revenue up 9% to EUR 12.1 million
• Increase of total operating performance from EUR 13.0 million to EUR 13.3 million
• BioScience segment grows 8%
• BioIndustrial segment with positive EBIT contribution
• Operating cash flow improved significantly

Zwingenberg, May 31, 2017: B.R.A.I.N. Biotechnology Research and Information Network AG ("BRAIN AG"; ISIN DE0005203947 / WKN 520394) today published its financial results for the first half of fiscal year 2016/17. Accordingly, during the reporting period from October 1, 2016, to March 31, 2017, the BRAIN Group grew its total operating performance by 3 percent from EUR 13.0 million to EUR 13.3 million. This development was driven mainly by the strong growth of the BioScience segment in the second quarter. At the same time, revenues of BRAIN Group increased by 9 percent from EUR 11.2 million to EUR 12.1 million. The half-year EBIT was down from EUR -5.3 million to EUR -5.6 million mostly due to first quarter special items with no impact on liquidity. The BioIndustrial segment generated a positive EBIT contribution of EUR 0.2 million. The operating cash flow developed positively, amounting to EUR -2.3 million compared to EUR -4.6 million in the previous year period.

Development of the first half-year 2016/17

"Following a modest first quarter of 2016/17, our second quarter figures were strong. The development of the BioScience business is particularly pleasing with the achievement of many relevant milestone payments. Also, the strategic focus of the BioIndustrial segment on higher-margin products in the growing bioeconomy sector is progressing and increasingly paying off," said Dr Jürgen Eck, CEO of BRAIN AG.

The BioScience segment increased its total operating performance by 8 percent year-over-year to EUR 6.9 million. The rise reflects a growing cooperation business with globally operating industrial partners, especially from the specialty chemicals and food manufacturing industries, as well as the reaching of development milestones.

The BioIndustrial segment grew its revenues for the first six months of fiscal year 2016/17 to EUR 6.7 million compared to EUR 6.2 million in the previous year (an increase of 7 percent). Its total operating performance was stable at EUR 6.5 million compared to EUR 6.6 million in the previous year, mainly due to a strong reduction of inventories.

The Group operating result (EBIT) declined year-on-year from EUR -5.3 million to EUR -5.6 million reflecting adjustable special items such as personnel expenses from a share-based employee compensation scheme that have no impact on liquidity and/or equity. Eliminating these special items, the adjusted half-year Group EBIT improved from EUR -3.3 million to EUR -2.9 million, benefitting from a second quarter adjusted Group EBIT of EUR -0.6 million compared to EUR -2.4 million in the prior year quarter reflecting (see below).

The operating cash flow improved significantly from EUR -4.6 million to EUR -2.3 million, which is mainly due to the positive business development, including amongst others higher milestone payments. In the previous year, approximately EUR -1.1 million of one-off IPO costs were included in the operating cash flow.

Cash and cash equivalents, including fixed term deposits, decreased from EUR 18.3 million as per September 30, 2016 to EUR 15.0 million as per March 31, 2017 (EUR 23.5 million as per March 31, 2016). This includes EUR -0.5 million of scheduled repayments of financial debt.

Financial Highlights second quarter 2016/17

The BioScience segment achieved a substantial improvement in total operating performance of 27 percent in the second quarter, growing from EUR 2.9 million to EUR 3.7 million. The total operating performance of the BioIndustrial segment remained stable at EUR 3.0 million. The BRAIN Group's total operating performance in the second quarter thus increased by 12% from EUR 6.0 million to EUR 6.7 million.

The Group's EBIT improved from EUR -3.2 million in the second quarter of 2015/16 to EUR -1.2 million in the second quarter of 2016/17. At the same time, the adjusted EBIT improved from EUR -2.4 million to EUR -0.6 million.

"The development of the financials for the first half of the current financial year show that we are pursuing our path of sustainable growth consistently. Additional business volume is reflected in corresponding earnings improvements", commented Frank Goebel, appointed with the AGM on March 9, 2017 as CFO of BRAIN AG.
 

Key financials (first half-year 2016/17)

2 Including IPO related one-off costs of EUR 1.126 million in the fiscal year 2015/16

3 Including fixed term deposits

More detailed information on the half-year financial results are available at www.brain-biotech.de/en/investor-relations/financial-publications as part of the half-year report for the period ending March 31, 2017.

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About BRAIN

BRAIN AG is one of Europe's leading technology companies in the field of industrial biotechnology, the core discipline of Bioeconomy. As such, BRAIN identifies previously untapped, efficient enzymes, microbial producer organisms or natural substances from complex biological systems that can be put to industrial use. The innovative solutions and products developed by help of this "Toolbox of Nature" are successfully applied in the chemistry, the cosmetics and the food industries. Today, BRAIN's business model is based on two pillars - "BioScience" and "BioIndustrial". The first pillar, "BioScience", comprises its - frequently exclusive - collaboration business with industrial partners. The second pillar "BioIndustrial" comprises the development and commercialisation of BRAIN's own products and active product components. Further information is available at www.brain-biotech.de/en.

Contact:

B.R.A.I.N
Biotechnology Research And Information Network AG
Dr. Martin Langer
Executive Vice President
Corporate Development
Darmstädter Str. 34-36
64673 Zwingenberg, Germany

Tel.: +49-6251-9331-16
Fax: +49-6251-9331-11
E-Mail: ir@brain-biotech.de
www.brain-biotech.de
 

Disclaimer

This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN Group. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.