Revenio Group Corporation, Half Year Financial Report, August 7, 2017 at 9:00 am
Revenio Group Corporation Half Year Financial Report January 1-June 30, 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 half-year financial report for January-June 2017 as an appendix to this stock exchange release. This release is a summary of Revenio Group Corporation's half-year financial report for January-June, which is available in full in the PDF file attached to this stock exchange release, and on the company website at www.revenio.fi .
Sustained strong growth of sales continued in the second quarter, increasing profitability to an excellent level
April-June 2017 in brief, continuing Group functions
- Net sales totaled EUR 6.7 (5.8) million, showing an increase of 15.0%
- Operating profit was EUR 2.3 (1.7) million, representing 33.9% of net sales, an increase of 35.5%
- Probe sales amounted to EUR 2.0 (1.5) million, representing an increase of 29.0%
- Earnings per share, undiluted EUR 0.22 (0.18)
- The profitability was affected by the decreased cost of manufacture and the scalability of fixed expenses
- The new wireless mHOME application was introduced in June
January-June 2017 in brief, continuing Group functions:
- Net sales amounted to EUR 12.7 (11.0) million, up 15.6% from the previous year
- Operating profit was EUR 4.0 (3.0) million, representing 31.2% of net sales, an increase of 31.9%
- Probe sales amounted to EUR 3.8 (3.0) million, representing an increase of 27.0% (32.5%)
- Earnings per share, undiluted EUR 0.40 (0.30)
- Icare HOME approved for sale in the United States in March
- Revenio's asthma product Ventica® was issued with a CE marking in January
Key figures, continuing operations, EUR million
| 1.4- 30.6.2017 | 1.4.- 30.6.2016 | Change- % | 1.1- 30.6.2017 | 1.1- 30.6.2016 | Change- % | |
| Net sales, Group | 6.7 | 5.8 | 15.0 | 12.7 | 11.0 | 15.6 |
| Operating profit, Group | 2.3 | 1.7 | 35.5 | 4.0 | 3.0 | 31.9 |
| Net sales, Health Tech | 6.7 | 5.8 | 15.0 | 12.7 | 11.0 | 15.6 |
| Operating profit, Health Tech | 2.8 | 2.1 | 29.2 | 5.0 | 3.7 | 34.1 |
| Undiluted earnings per share | 0.22 | 0.18 | 0.40 | 0.30 | ||
| Cash flow from operating activities | 2.1 | 1.2 | 3.8 | 1.2 | ||
| 30 June 2017 | 30 June 2016 | Change, %-point | ||||
| Equity ratio-% | 73.2 | 79.3 | -6.1 | |||
| Gearing-% | -34.3 | -24.3 | -10.0 |
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, CEO, comments on Q2/2017:
Q2/2017 was a strong quarter for Revenio, with respect to both sales and profitability. Net sales increased by 15%, totaling EUR 6.7 million. The operating profit rose by 35.5%, reaching EUR 2.3 million, which amounts to 33.9% of net sales. In the same quarter of the previous year, there was a large warehouse delivery to China, contributing to the net sales for Q2/2016. Despite this, we achieved net sales 15.0% better than the year before. Sales were particularly good in the USA, the UK, Australia, Canada, India, Russia, Switzerland, Belgium, and many Latin American and Asian countries. During the spring, Icare participated in a record number of congresses in the field of ophthalmology in the United States, creating a good framework for growth.
Approximately 40% of our invoicing is dollar-based. The dollar continued to decline against the euro in Q2, which decreased the value of net sales. Because of this, the organic growth of net sales, i.e. currency-adjusted net sales, amounted to 17.8% in Q2, being almost 3 percentage points stronger than reported.
A lot of work around the world has gone into improving the recognition of the Icare HOME tonometer, intended for all-day monitoring of intraocular pressure. Home measurement is not yet covered by public insurance. Our goal is to attain that over time in as many countries as possible, albeit we recognize that the change in treatment practices is a slow process. In the past 18 months, 13 international studies have been published on the variation of intraocular pressure during the day, and all of them support the use of the Icare HOME tonometer as part of the treatment process. What is most significant is that the 24-hour variation of eye pressure and its significance in the treatment of glaucoma is no longer questioned. The sales of the Icare HOME tonometer started in the USA after March, following FDA approval on March 21, 2017 for the sale of the product. The first demonstration devices were delivered to our sales organization in April-May, with the entire team also receiving sales training. In addition, the Icare HOME tonometer's BeeWell mobile application was rolled out in 5 countries. The application is intended as a databank for the product's end users and has been very well received.
During the review period, the next-generation Icare ic100 tonometer received sales approval in Japan, Singapore, Taiwan, and Russia. Icare ic100 has rapidly replaced the previous-generation TA01 tonometer wherever the product is already approved for sales. Icare ic100 has already established a solid position in the USA, as well.
Probe sales grew by 29.0% in April-June. As a new channel in the USA, Icare opened an online store for probes, which is proven to be a good sales channel for our disposable product.
At the World Glaucoma Congress in Helsinki at the end of June, we published Icare's new mHOME application, which enables the user to transfer the measurements from the Icare HOME tonometer to a cloud service using a mobile device. This allows medical staff to monitor the patient's measurements or a physician to give the patient the possibility of monitoring their own results. In addition, the leading glaucoma physicians in the world, Professor Weinreb and Professor Friedman, participated in the event, which was co-sponsored by Icare.
The new Icare TONOVET PLUS, intended for measuring the eye pressure of animals, was introduced during the review period. The product will replace Icare TONOVET, which has been on the market for more than 10 years. The product has been developed on the basis of the Icare ic100 tonometer. Clinical studies with the new product have been carried out in the USA. Icare TONOVET Plus is the only product on the market whose operation is based on clinical studies with different species. The menu includes species modes for dog, cat, horse, and rabbit. The product has been received positively, and we have orders booked for almost 100 devices before deliveries have started. The majority of countries do not require a sales permit for products related to the tonometry of animals.
Clinical studies that started at the beginning of the year with the asthma product Ventica® continue in Croatia, Germany, and Finland. In Australia, clinical studies will commence later during the year. We are awaiting interim results from Croatia and based on them, we will make a decision on possible changes to the device before launching a commercial product.
With respect to a device for screening skin cancer, the design and implementation of a commercial product has already been started with a number of our subcontracting partners. Our goal is to have the product at the approval stage during 2018.
Oscare device sales in the beginning of the year have not been in accordance with our expectations. Several user tests are in progress with significant customer groups across Europe and the Middle East, but it will take a lot longer to obtain results than anticipated. Potential customers will not order the devices until they have analyzed the results of the user tests.
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, CEO, tel. +358 40 580 4774 timo.hilden@revenio.fi www.revenio.fi
DISTRIBUTION: Nasdaq Helsinki Financial Supervisory Authority 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 margin for continuing operations standing at 30.1%. Revenio Group Corporation is listed on Nasdaq Helsinki.
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