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B.R.A.I.N. Biotechnology Research And Information Network AG / Key word(s): Development of Sales/Quarter Results
BRAIN AG: Unexpectedly weak first quarter of 2017/18 leads to decline in revenues
In the course of the current preparation of key figures for the first quarter of fiscal year 2017/2018 (October 1, 2017 to December 31, 2017) it turned out that the expected increase in revenues compared to the same quarter of the previous year cannot be achieved. Accordingly, Group revenues of BRAIN AG in the first quarter of 2017/18 are expected to reach a total of EUR 5.3 million and thus will be 13.1% below the previous year's figure (EUR 6.1 million). Total operating performance in the first quarter of 2017/18 is expected to be EUR 6.0 million, down 8.7% year-on-year.
In the first quarter of 2017/18, the Group's adjusted EBIT improved by an estimated EUR 0.6 million to EUR -1.7 million and generated a positive net cash flow. In the BioScience segment, however, delays in the signing of new and follow-up cooperation projects led to an unexpected drop in sales compared with the prior-year quarter. In the BioIndustrial segment, the shortfall of anticipated follow-up orders from a major customer in the cosmetics segment and the fact that this customer had not yet implemented new sales channels in the first quarter of 2017/18 led to a decline in sales volume compared with the previous year.
The effects of this revenue development on the Group's revenue and earnings expectations for the full financial year 2017/18 are currently being reviewed. At the time being, the Management Board still expects to achieve double-digit revenue growth in the 2017/18 financial year, although this will be below previous expectations. Concurrently, it now appears unlikely that the EBIT break-even target will be reached in the course of the 2017/18 financial year, even though a significant improvement in adjusted EBIT compared with the previous year's figure is still envisaged.
And Information Network AG
Darmstädter Str. 34-36
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Dr. Martin Langer
Executive Vice President
Head of Public Relations
Information and Explanation of the Issuer to this News:
B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG; ISIN DE0005203947 / WKN 520394) 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. BRAIN's business model is based on two pillars - BioScience and BioIndustrial. The BioScience comprises its frequently exclusive collaboration business with industrial partners. BioIndustrial comprises the development and commercialization of BRAIN's own products and active product components. Further information is available at www.brain-biotech.de/en.
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 of companies. 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.
|Company:||B.R.A.I.N. Biotechnology Research And Information Network AG|
|Darmstädter Straße 34-36|
|Phone:||+49 (0) 62 51 / 9331-0|
|Fax:||+49 (0) 62 51 / 9331-11|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
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