aap Implantate AG /
aap reports 25% sales increase of EUR 36.4 million for 2012 and raises EBITDA
forecast to between EUR 6.0 million and EUR 6.2 million (+50% over previous
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aap Implantate AG, a medical technology company listed in the Prime Standard segment of the Frankfurt Stock Exchange, generated 9% higher sales compared to the previous year totalling EUR 8.9 million (previous year: EUR 8.2 million) in the fourth quarter of the financial year 2012, according to preliminary figures. In the full financial year 2012 aap boosted sales by 25% on the previous year from EUR 29.2 million to EUR 36.4 million. On the basis of the fourth quarter 2012 results, the full year 2012 EBITDA forecast is raised from the original EUR 5.7 million to EUR 5.9 million to between EUR 6.0 million and EUR 6.2 million. Based on a 25% year-on-year sales increase EBITDA boosted by around 50% on the previous year (EBITDA 2011: EUR 4.1 million) and clearly reflects the consistent implementation of the strategy of profitable growth.
Since the beginning of December all of the plates in the first six systems of aap's innovative LOQTEQ® product family have received FDA market approval in the United States. As a result we signed a contract for a pilot marketing project with a large US orthopaedics company that covers both our standard trauma products and the LOQTEQ® product portfolio. If the pilot project is a success a distribution agreement for the US market will be finalised. Furthermore, an exclusive licensing and distribution agreement for a spinal cement was signed with a Chinese partner.
2012 - Results & Analysis
Full year 2012 sales totalled EUR 36.4 million (previous year: EUR 29.2 million), leading to a 25% year-on-year sales increase.
Sales growth in the financial year 2012 was due mainly to growth in the two core areas Trauma and Biomaterials and to a EUR 2.1 million exclusive licensing agreement signed in the first quarter of 2012. Contract manufacturing by EMCM B.V. of gels, liquids and bone materials at the Nijmegen, Netherlands, site also showed solid growth.
aap achieved the following further targets set in its Management Agenda 2012. It exceeded its 10% sales growth target significantly by realizing more than 20% sales growth. Cash-EBIT (EBIT excluding capitalised development work and depreciation thereof) will be positive for the first time, amounting to around EUR 1.0 million according to current calculations. The first six plating systems of the innovative LOQTEQ® product line were approved by the FDA for market release in the United States. LOQTEQ® distribution contracts were also signed in countries such as Brazil, Argentina, Mexico, Columbia, Italy, Spain, Portugal, Turkey and Egypt. aap was extremely successful in expanding its business activities in the US market and also increased sales in the Chinese market. Following outlicensing of the dental business from the Biomaterials business area in the beginning of 2009 to an exclusive partner, we transferred the manufacturing of these products to a separate, aap-owned, company and sold 50% of the shares in the company to our partner in December 2012. Contract manufacturing activities also expanded: In the 2012 financial year the Nijmegen site signed contracts with parties that included a major US customer and a Japanese business partner. Furthermore, aap was able to reduce its shareholder loans from EUR 3.0 million to EUR 0.8 million.
2013 - Outlook
In the financial year 2013 aap will concentrate on further optimisation in the areas of Customers, Innovation, Finance and Organisation that we will specify in our Management Agenda 2013. The Management Board anticipates for 2013 sales growth of 10% and EBITDA growth of 15%. We aim, mainly by means of higher sales of the new LOQTEQ® product family and newly developed cements in the Biomaterials business area, to further improve our Freshness Index. In 2013 we aim to continue to implement the principles of profitable growth and to reduce the share of working capital in relation to sales revenue. As part of our ongoing focus on Trauma and Biomaterials, aap is continuing to evaluate whether additional products can be disinvested. For the Recon product area (hip and knee) aap is currently engaged in non-binding talks. Different business models are under discussion - from a total disposal of the product area to a joint venture with a partner company. Net indebtedness is to be further reduced in 2013 to achieve further positive effects on interest obligations. With a positive Cash-EBIT (EBIT excluding capitalised development work and depreciation thereof), aap aims to finance its growth internally again in 2013.
In the first quarter of 2013 we expect product sales between EUR 7.8 million and EUR 8.2 million. Additionally, we are in advanced negotiations reading license and supply agreements with several companies. Signing these agreements in the first quarter of 2013, aap would further realise sales effects between EUR 1.5 million and EUR 2.0 million and total sales revenues would range between EUR 9.3 million and EUR 10.2 million (previous year: EUR 9.9 million). Based on these total sales revenues we expect an EBITDA between EUR 1.5 million and EUR 1.9 million (previous year: EUR 2.1 million).
Publication of aap's Consolidated Annual Financial Statements for 2012 is scheduled for March 28, 2013.
This release contains 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.
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of the Frankfurt Stock Exchange. 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.
For inquiries please contact:
aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, email@example.com
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Source: aap Implantate AG via Thomson Reuters ONE