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 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; 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
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.
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.
 Relating to sales revenues, changes in inventories of finished and unfinished products and cost of materials / purchased services.
About aap Implantate AG
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13.05.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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|Company:||aap Implantate AG|
|Phone:||+49 (0) 30 75 01 90|
|Fax:||+49 (0) 30 75 01 91 11|
|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|