aap Sales on Product Level Totaled EUR 27.5 Million (+14 Percent) in the Financial Year 2010
(Thomson Reuters ONE) -
aap Implantate AG /
aap Sales on Product Level Totaled EUR 27.5 Million (+14 Percent) in the
Financial Year 2010
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Preliminary figures indicate that aap Implantate AG, a medical technology
company listed in the Prime Standard segment of the Frankfurt Stock Exchange,
achieved sales on product level of EUR 7.5 million (previous year: EUR 7.5
million) in the fourth quarter of 2010. After adjustments for project sales,
sales by the Analytics segment, which was sold in December 2009 and other one-
time effects amounting to EUR 9.0 million, sales on product level for 2009
totaled EUR 24.1 million, so the sales on product level for 2010 totaling EUR
27.5 million represented a 14 percent increase on the previous year. Fourth-
quarter sales on product level were up by 12 percent to EUR 7.5 million (from
EUR 6.7 million, adjusted by EUR 0.8 million).
aap therefore only narrowly failed to achieve its stated sales on product level
growth target of 15 percent in the financial year 2010. We had set our sales
forecasts higher, but two main factors led to us falling just short of our
target. As previously announced, we decided to postpone our WSG System sales
launch in order to evaluate possible marketing strategies. In addition, sales of
our human bone material Allograft were below expectations due to a French
competitor accusing us of a breach of patent and calling a halt to sales of our
products in a number of countries.
2010 Results & Analysis
Product sales in the second half of 2010 totaled EUR 14.7 million and were just
below 15 percent higher than in the first half. This illustrates the initial
marketing and sales successes in restructuring measures initiated in 2009. Total
sales for 2010 amounted to EUR 28.4 million (previous year: EUR 33.1 million).
The aap Group achieves its total sales in two ways: on the one hand from
biomaterials and implant products sold under its own label or manufactured for
OEM-partners, and on the other hand from project sales and outlicensing.
Adjusted like-for-like fourth quarter and full year's product sales for 2010 and
2009 are as follows:
+--------------------+-------+-------+-------+-------+------------+------------+
| |Q4 2010|FY 2010|Q4 2009|FY 2009|Change on Q4|Change on FY|
| | | | | | | |
| |in ? m |in ? m |in ? m |in ? m | | |
+--------------------+-------+-------+-------+-------+------------+------------+
|Total sales |7.5 |28.4 |7.5 |33.1 |-1% | -14% |
+--------------------+-------+-------+-------+-------+------------+------------+
|Project sales |- |0.9 |- |4.5 |n. a. |n. a. |
+--------------------+-------+-------+-------+-------+------------+------------+
|Analytics segment |- |- |0.6 |2.7 |n. a. |n. a. |
+--------------------+-------+-------+-------+-------+------------+------------+
|One-time effects |- |- |0.2 |1.8 |n. a. |n. a. |
+--------------------+-------+-------+-------+-------+------------+------------+
|Product sales |7.5 |27.5 |6.7 |24.1 | +12% | +14% |
|(adjusted) | | | | | | |
+--------------------+-------+-------+-------+-------+------------+------------+
In addition to sales growth, aap set itself other objectives in its management
agenda for 2010. For the first time a corporate manager is in charge of Research
& Development (R&D), which will boost efficiency and optimize synergy effects.
The merger of two sites has led to the creation of a center of excellence for
R&D in Dieburg. Adoption of the so-called Freshness Index (the percentage of
product sales achieved by products newly approved in the U.S. and Europe over
the past three years) introduced an additional indicator of aap's power of
innovation. In 2009, aap's Freshness Index performance was 14 percent.
In December, a letter of intent was signed with a globally active orthopaedics
company on the development of a new product and therefore we were able to secure
a first partner agreement. We are still in negotiations regarding the second
project agreement. In addition, aap achieved further progress in the U.S.
market. In the fourth quarter of 2010 we shipped an initial delivery of our
cannulated screws to a new customer.
At the end of 2010 employee numbers were up 6 percent on the year to 256 from
242. As a part of further cost savings we undertook a further reduction in the
number of employees and consultants in November, this will have a positive
effect on personnel expenses in the course of 2011.
In 2010 we once more achieved our strategic objective of profitable growth, and
EBIT at product level will also show a substantial improvement (previous year:
EUR -1.5 million).
In the fiscal year 2010 aap again achieved its strategic targets for capital
management: a debt coverage ratio of < 3 and an interest coverage ratio of > 6.
We were even able to improve on our forecast by reducing borrowing costs by more
than 25 percent.
2011 Outlook
In the fiscal year 2011 aap concentrates on further optimization in the areas of
customers- innovation-finance-organization, which we will be specifying in our
management agenda for 2011. The Management Board anticipates sales growth of 10
percent at product level in 2011. Positive cash EBIT (EBIT excluding capitalized
development work and depreciation thereof) at product level is intended not only
to ensure profitable growth but also to lead to liquidity becoming less
dependent on project sales. Working capital is to be reduced by more than 10
percent as a proportion of sales. A further objective is to improve the Group's
Freshness Index performance by launching new products, such as the WSG System,
and by launching existing products in new markets.
To develop its sales structure, aap is analyzing its sales organization
intensively in attractive European markets and in the so-called BRICS countries.
Autonomous growth is its primary objective, but Buy & Build strategies are also
under consideration.
As part of the ongoing focus on trauma, cement and infection care we are looking
into the extent to which divestment of additional products might be considered.
In the interest of its shareholders and employees, aap would like to adopt a
code of conduct that makes the principles of our economical activity
transparent.
aap plans to publish the full annual report for 2010 on March 31(st), 2011.
This release contains forward-looking statements based on current experience,
estimates and projections of the management board and currently available
information. They are not guarantees of future performance. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. Many factors could
cause the actual results, performance or achievements of aap to be materially
different from those that may be expressed or implied by such statements. These
factors include those discussed in aap's public reports. Forward-looking
statements therefore speak only as of the date they are made. aap does not
assume any obligation to update the forward-looking statements contained in this
release or to conform them to future events or developments.
________________
aap is a medical technology company that develops, manufactures and markets
biomaterials and implants for the areas Ortho/Trauma/Spine. Its product
portfolio includes bone cements, bone graft substitutes, antibiotic carriers,
and implants for fracture healing and joint replacement. In addition to its
Berlin HQ the Company has sites in Dieburg and Obernburg near Frankfurt am Main
and Nijmegen in the Netherlands. aap Implantate AG stock has been listed in the
Prime Standard segment of the Frankfurt Stock Exchange since May 16, 2003.
For inquiries please contact:
aap Implantate AG, Nanette Huedepohl, Head of Corporate Communications,
Lorenzweg 5, 12099 Berlin, Germany, Tel.: +49 30 7501 9133, fax:
+49 30 7501 9290, n.huedepohl(at)aap.de
For more details please visit www.aap.de
--- End of Message ---
aap Implantate AG
Lorenzweg 5 Berlin Germany
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: aap Implantate AG via Thomson Reuters ONE
[HUG#1479161]
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Datum: 12.01.2011 - 11:52 Uhr
Sprache: Deutsch
News-ID 50393
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