Revenio Group Corporation: Half-year financial report 1.1.-30.6.2018
Revenio Group Corporation, Stock Exchange Release August 6, 2018 Half Year Financial Report, at 9.00 am
Revenio Group Corporation Half Year Financial Report January 1-June 30, 2018
This release is a summary of Revenio Group Corporation's half year financial report for January-June 2018. The complete report is attached to this release as a pdf-file. The stock exchange release is also available on the company's website at www.revenio.fi.
Strong second quarter, net sales growth 13.4%
April-June 2018 in brief, continuing Group functions
- Net sales totaled EUR 7.6 (6.7) million, showing an increase of 13.4%
- Operating profit was EUR 2.5 (2.3) million, representing 33.0% of net sales, an increase of 10.7%
- Earnings per share, undiluted EUR 0.085 (0.074)
- The currency-adjusted growth of net sales in April-June was 12.7%, or 0.8% percentage points weaker than reported
- An application for a CE marking for the new-generation Icare ic200 for professional use was submitted in May
January-June 2018 in brief, continuing Group functions:
- Net sales amounted to EUR 14.6 (12.7) million, up 14.6% from the previous year
- Operating profit was EUR 4.6 (4.0) million, representing 31.8% of net sales, an increase of 17.2%
- Probe sales amounted to EUR 4.6 (3.8) million, representing an increase of 20.4% (27.0%)
- Earnings per share, undiluted EUR 0.154 (0.133)
- By a decision of the annual general meeting, the shareholders were issued with free new shares in relation to ownership, with two new shares being issued for every share held (a so-called share split).
- The currency-adjusted growth of net sales in January-June was 17.7%, or 3.1% percentage points stronger than reported
Key figures, continuing operations, EUR million
|Apr 1 - Jun 30, 2018||Apr 1 - Jun 30, 2017||Change %||Jan 1 - Jun 30, 2018||Jan 1 - Jun 30, 2017||Change %|
|Net sales, Group||7.6||6.7||13.4||14.6||12.7||14.6|
|Operating profit, Group||2.5||2.3||10.7||4.6||4.0||17.2|
|Net sales, Health Tech||7.6||6.7||13.4||14.6||12.7||14.6|
|Operating profit, Health Tech||3.2||2.8||14.8||5.9||5.0||17.0|
|Earnings per share, undiluted||0.09||0.07||0.15||0.13|
|Cash flow from operating activities||1.9||2.1||3.6||3.8|
|Jun 30, 2018||Jun 30, 2017||Change, % points|
|Equity ratio, %||81.9||73.2||8.7|
|Net leveraging, %||-31.7||-34.3||2.6|
Financial guidance for 2018
Net sales growth is expected to remain strong. Profitability is expected to remain at a healthy level despite relatively increasing growth investments.
Timo Hildén, CEO, comments on Q2/2018:
Our net sales for April-June were 7.6 (6.7) million, growing by 13.4%, and our operating profit was 2.5 (2.3) million, an increase of 10.7%.
The new generation tonometer, the Icare ic100, was granted a sales permit in China in May and in Mexico in June. The first deliveries went to China in June. To ensure efficiency and coverage, in China the Icare ic100 will be distributed through a wider distribution network than that of the previous-generation product, the TA01. As expected, the launch of the new generation product slowed down sales of the previous generation device during the review period, as distributors ran down their stocks of the TA01. We expect the first major orders of the ic100 from China only later in the year.
During the review period, we decided to move to larger premises in Raleigh, USA. Almost 10 employees are already working in our office and the new facilities allow future growth. The move into the new premises will occur in September.
A CE marking application for the new generation of tonometers for professionals, the Icare ic200, was submitted at the end of May this year. We expect to receive the sales permit during the third quarter. Based on the product feedback we have already received, we expect high demand for the product in Europe as soon as sales work begins. The product will replace the Icare PRO, which has been a popular product among ophthalmologists who perform surgery. A sales license application will be submitted for the product in the United States as soon as clinical trials have been completed.
Additional research results are appearing on a continuous basis on the importance of 24-hour eye pressure monitoring to the identification and treatment of glaucoma and the role of Icare HOME. This is important in establishing new treatment practices. The latest study was published in Australia and revealed how almost 10% of patients had significantly elevated intraocular pressure outside clinic hours and optical nerve damage in the fundus oculi. The study clearly shows how important it is to determine potential daily fluctuations in intraocular pressure and the effectiveness of drug treatment after diagnosis.
We launched direct sales of Icare HOME tonometers for consumers in Finland in May and opened the silmanpaine.fi website in support of sales. An increasing number of ophthalmologists are serving as reference clinics for Icare HOME users.
The asthma Product Ventica® has undergone clinical trials based on an improved algorithm, for which we have received good results. The commercial launch of the product in Europe is scheduled for the autumn and the product will be displayed in venues such as the Congress of the European Respiratory Society in Paris, where we will also give a scientific presentation of Ventica in the treatment of asthma in pediatric patients.
The hyperspectral camera for skin cancer, Cutica®, is progressing as planned and our goal is to apply for a sales permit on the basis of the CE Mark in Europe in early 2019. There has been growing interest in the product among dermatologists.
During the early part of the year, we have been working on meeting the requirements of the EU Data Protection Regulation (GDPR) which entered into force in May. I am pleased to note that to our understanding, we achieved readiness to fulfil the terms of the regulation in May, in accordance with the schedule set by the authorities.
This report contains certain statements that are estimates based on the management's best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in general economic conditions.
Revenio Group Corporation
Board of Directors
For further information, please contact:
Timo Hildén, CEO, tel. +358 40 580 4774
Nasdaq Helsinki Oy
Financial Supervisory Authority (FIN-FSA)
The Revenio Group in brief
Revenio is a Finnish, globally operating health technology corporation whose worldwide success is based on a strongly patented intraocular pressure measurement technology. The Revenio Group consists of Icare Finland Oy, Revenio Research Oy and Oscare Medical Oy. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings in health care via preventive measures. Revenio seeks vigorous growth in health technology. Revenio aims to develop even more efficient and easily adopted methods for the early-stage detection of diseases with significance for public health. The focus of Revenio's screening technology is on the early detection of glaucoma, osteoporosis, skin cancer and asthma, and the monitoring of these during the treatment process.
In 2017, Revenio Group's net sales totaled MEUR 26.8, with its operating margin for continuing operations standing at 35.5%. Revenio Group Corporation is listed on Nasdaq Hel