Revenio Group Corporation, Interim Report, April 20, 2017 at 9:00 am
Revenio Group Corporation Interim Report January 1 - March 31, 2017
Due to an amendment to the Securities Market Act, which came into force on November 26, 2015, the descriptive sections of Revenio's interim reports Q1/2017 and Q1-Q3/2017 will be shorter and more concise. The table sections will be reported in accordance with previous practices. The figures are unaudited.
Revenio Group Corporation has adopted the publication procedure enabled by the Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure obligation on issuers) and is publishing its financial statements bulletin for January-March 2017 as an appendix to this stock exchange release. This release is a summary of Revenio Group Corporation's Interim Report Q1/2017, which is available in full in the pdf file attached to this stock exchange release, and on the company website at www.revenio.fi .
Strong start to 2017 - a clear growth in net sales and operating profit
January-March 2017 in brief, continuing Group operations
- Net sales totaled EUR 6.0 (5.2) million; up by 16.3%
- Operating profit was EUR 1.7 (1.3) million; up by 27.3%
- Probe sales developed as expected; sales grew 25.0% from last year
- Timo Hildén has been the Group President and CEO since January 1, 2017
- The Icare HOME tonometer was granted a sales permit in the United States in March
- Revenio's asthma product Ventica® was given a CE marking in January
- Earnings per share, undiluted EUR 0.18 (0.12)
| Key figures, continuing functions, MEUR | |||
| 1.1.-31.3.2017 | 1.1.-31.3.2016 | Change-% | |
| Net sales, Group | 6.0 | 5.2 | 16.3 |
| Operating profit, Group | 1.7 | 1.3 | 27.3 |
| Net sales, Health Tech | 6.0 | 5.2 | 16.3 |
| Operating profit, Health Tech | 2.3 | 1.6 | 40.6 |
| Undiluted earnings per share | 0.18 | 0.12 | |
| Cash flow from operating activities | 1.7 | 0.5 | |
| 31 March 2017 | 31 March 2016 | Change, %-point | |
| Equity ratio-% | 66.6 | 74.1 | -7.5 |
| Gearing-% | -31.7 | -24.9 | -6.8 |
Financial guidance for 2017
Net sales growth is expected to remain strong. Profitability is expected to remain at a healthy level despite growth investments.
Timo Hildén, President and CEO, comments on the first quarter of 2017:
Our performance in the first quarter of 2017 was as expected. We have enjoyed brisk sales in Europe, especially in the United Kingdom, Switzerland, and the Netherlands. In the Far East, our sales performance was strong in Korea, Thailand, Malaysia and Singapore, as well as in Australia. The investments we made in resources last year in the Middle East clearly translated into a positive sales trend.
During the review period, we were granted sales permits that are crucial to our future sales development. The most important of these included the sales permit granted by the United States Food and Drug Administration FDA for the Icare HOME tonometer. In Russia, we received sales permits for the Icare HOME and Icare ic100, which was also granted a sales permit in Taiwan during the review period. Our asthma product Ventica® was granted a CE marking in January. In addition, product registrations for the Icare ic100 are currently under way in Japan and Korea.
Oscare Medical's sales in the period under review remained at a low level. The test results and customer feedback has been good, but the market has proven to be challenging.
We estimate that the sales permit we received in March for the Icare HOME tonometer in the United States markets will have a positive effect on US sales towards the year-end. The product launch has begun and the first deliveries from Finland to Icare USA Inc.'s warehouse will be made in April. Several ophtalmology conferences will be held in the United States this spring, where our products will be showcased. We expect this visibility to boost sales. In January, Seth Rogers joined our US team as its National Accounts Manager. He will strengthen our organization by bringing significant knowledge and experience of the sector.
During the review period, we launched a tabletop holder for tonometers, for easier storage of the device on a table or wall. This will also increase the visibility of the Icare brand.
In the United States, we decided to make probes available online in order to further enhance probe sales in an extensive market area.
Research results on 24-hour intraocular pressure measurement relevant to the Icare HOME tonometer are being published on continuous basis, with the results consistently supporting the introduction of home measurement in patient care. We are particularly keen to hear the results of a study involving 100 patients in Australia, since the preliminary information has been very positive. In Finland, several medical centers are about to introduce the Icare HOME tonometer to clinical use. Furthermore, leading ophthalmologists and opinion leaders in the United States have indicated their intention to launch further studies using the Icare HOME tonometer.
In North America, sales of the Icare TONOVET, a device for measuring intraocular pressure in animals, were very strong, in contrast to a very quiet start in Europe. We have used the Icare ic100 tonometer to develop the new Tonovet Plus, which will be launched during 2017. Clinical trials of the new product were conducted in the United States. In most countries, no sales permit is required for products used to measure intraocular pressure in animals.
Revenio Research Oy's development projects for skin cancer and asthma-related products are progressing as planned. A CE marking was granted for Revenio's asthma product Ventica® in January, which will enable sales and marketing of the product, as well as more extensive clinical studies. Two clinical studies on Ventica® are under way in Europe, and a new one will be launched in Australia during Q2. In addition, an agreement has been signed with a Finnish medical center to use Ventica® for the monitoring of pediatric patients.
General statement
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, President & CEO, tel. +358 40 580 4774 timo.hilden@revenio.fi www.revenio.fi
DISTRIBUTION: Nasdaq Helsinki Oy Financial Supervisory Authority (FIN-FSA) Principal media www.revenio.fi
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, in which Revenio holds a 53.5% interest. The common denominators of Revenio's business operations include screening, follow-up and the global need to make cost savings through preventive health care. 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 2016, Revenio Group's net sales totaled MEUR 23.4, with its operating profit for continuing operations standing at 30.1%. Revenio Group Corporation is listed on Nasdaq Helsinki.
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