Zwijnaarde 28 August 2009 - Devgen (Euronext: DEVG) reports 2009 Half
Year Results
(Thomson Reuters ONE) - Strong seed and technology revenue growth - Devgen's nematicidelaunched - Loss H1 substantially reducedRegulated informationFinancial highlights+-------------------------------------------------------------------+| ? million | H1 2009 | H1 2008 ||----------------------+-----------------------+--------------------|| Revenues | 8.6 | 5.8 ||----------------------+-----------------------+--------------------|| R&D expenditure | 4.6 | 7.2 ||----------------------+-----------------------+--------------------|| Burn Rate | 7.7 | 7.1 ||----------------------+-----------------------+--------------------|| Net loss from cont'd | -5.0 | -7.4 || operations | | ||----------------------+-----------------------+--------------------|| | June 30, 2009 | December 31, 2008 ||----------------------+-----------------------+--------------------|| Cash Position | 36.2 | 24.2 |+-------------------------------------------------------------------+Business highlightsDevgen's novel nematicide, an agro-chemical product that protectscrops from damage by parasitic nematodes, is ready to enter themarket:- Devgen obtained regulatory approval in the US for usage of its newnematicide on peanuts. Devgen will promote its nematicide under thebrand name Enclosure®. Sales are planned to start early 2010 and demotrials and information campaigns are currently ongoing;- Devgen obtained regulatory approval in Turkey for use of itsnematicide on tomato and cucumber grown under protective cover. Theproduct was launched in Turkey at the beginning of August under thebrand name Devguard®.In India strong growth was achieved in the hybrid seed businessdespite adverse weather conditions:- Devgen achieved a 40% growth in turnover during the first half ofthe year.- Sales of Devgen's hybrid rice, pearl millet, sunflower and sorghumfor the entire Kharif season (ending September) are now estimated toexceed last year sales during the same period with respectively 100%,70%, 22% and 16%.- Taking into account that part of the sunflower sales are plannedfor the Rabi season (running from October until February), turnoverfor the year is expected to grow by 50% for the full year 2009.- Growth of turnover in India is lower than planned, but Devgenperforms amongst the best in the Indian seed industry in a year whenadverse weather conditions had a negative influence on seedproduction and late and weak Monsoon rains substantially affected thecountry's farming industry as a whole (e.g. in anticipation of lowerproduction, the Indian government has banned rice exports for theremainder of the year).- By the end of 2009, having completed its first full year ofoperations, Devgen aims to be the top 4 player in hybrid rice, toregain the number one position in premium hybrid sorghum and targetsto be the number 3 hybrid sunflower seed provider in India.In Indonesia and the Philippines Devgen is preparing to launch itspremium hybrid rice varieties:- In the Philippines, Devgen has entered into a distributionagreement with Leads Agri, one of the leading agrochemicaldistributors with nationwide presence and familiar with farmer needs.A Devgen production and commercial support team is put in place. ThePhilippine breeding team has been strengthened and focuses onevaluating and breeding new rice hybrids that meet the needs of thePhilippine farmer. Production is ongoing in preparation of theNovember sales season.- In Indonesia Devgen has strengthened its relationship with Pt. SangHyang Seri (Persero) through the creation of a Strategic BusinessUnit for hybrid rice seed production. Registration of Devgen'sproduct is pending and first sales targeted for Q4 2009 or Q1 2010.Devgen realized significant progress and obtained further industryvalidation of its R&D programs and capabilities:- Devgen and Monsanto Company updated their Research and TechnologyAgreement, resulting in a payment of ? 20 million in cash by MonsantoCompany to Devgen.- Devgen renewed the Agrochemical Compound Discovery Agreement withSumitomo Chemical Company continuing a successful joined researchcollaboration.- Devgen's pipeline of biotech traits is expanding and progressing ontrack.Key figures H1 2009+-------------------------------------------------------------------+| EUR 000 (except for | H1 2009 | H1 2008 || earnings per share) | | ||------------------------------+---------------------+--------------|| Revenue | 8,618 | 5,846 ||------------------------------+---------------------+--------------|| EBITDA | -3,615 | -6,793 ||------------------------------+---------------------+--------------|| Loss from continued | -4,645 | -7,937 || operations | | ||------------------------------+---------------------+--------------|| Net of financial income/cost | -339 | 490 ||------------------------------+---------------------+--------------|| Net loss from continued | -4,985 | -7,447 || operations | | ||------------------------------+---------------------+--------------|| Basic earnings per share | | || from continued | -0.28 | -0.42 || operations (EUR) | | ||------------------------------+---------------------+--------------|| Net loss from discontinued | -162 | -4,122 || operations | | ||------------------------------+---------------------+--------------|| Net Loss for the year for | | || continued & | -5,147 | -11,568 || discontinued operations | | ||------------------------------+---------------------+--------------|| Basic earnings per share | | || from continued & | -0.29 | -0.65 || discontinued operations | | || (EUR) | | ||------------------------------+---------------------+--------------|| | June 30, 2009 | Dec 31, 2008 ||------------------------------+---------------------+--------------|| Cash and cash equivalents[1] | 36,173 | 24,218 |+-------------------------------------------------------------------+RevenueDevgen's revenue for the first six months of 2009 totaled ? 8.6million, compared to ? 5.8 million for the same period of 2008, anincrease with 47%.Revenue from seed sales amounted to ? 5.7 million for the first sixmonths of 2009 as compared to 4.1 million in the same period of 2008,an increase with 40%. Higher sales are explained by higher volumesand pricing for premium quality. Seed sales will continue in H2 withthe sunflower season still to come into full effect. Furthermoreexport sales (Indonesia and Pakistan) are expected to further add tothe top line whilst first sales in the Philippines are expected inQ4.Revenue from research and development services increased from ? 1.8million for the first six months of 2008 to ? 2.9 million for thefirst six months of 2009. Revenues recorded from the update of theResearch and Technology agreement with Monsanto Company and from therenewed collaboration with Sumitomo Chemical Company explain thisincrease. The ? 20 million received from Monsanto, as a result of theupdate, will be reflected in the P&L for an amount of K? 667 permonth as of May 2009 till October 2011, the end of the contractperiod.ExpenditureCost of goods sold was ? 4.1 million, fully relating to sales ofseed, compared to ? 2.9 million in H1 2008.Research and development expenses for the first six months of 2009amounted to ? 4.6 million (or ? 4.2 million excluding depreciation)as compared to ? 7.2 million (or ? 6.6 million excludingdepreciation) last year, a decrease of ? 2.6 million or 36%, mainlydue to lower research expenditure for the nematicide program andlower depreciation.General and administrative expenses for the first six months of 2009are ? 0.5 million lower than during the same period last year,amounting to ? 2.3 million.Marketing and distribution expenses amounted to ? 2.3 million (or ?1.9 million excluding amortization of intangible assets) for thefirst six months of 2009, as compared to ? 0.9 million (or ? 0.4million excluding amortization) in the same period of 2008. This isthe direct result of a major intensification of sales efforts (e.g.increased number of sales people in the field) to support Devgen'saggressive growth path.ResultsThe net loss with respect to continuing operations for the first sixmonths of 2009 amounts to ? 5.0 million versus ? 7.4 million over thesame period last year. A small amount of loss was recorded fordiscontinued operations during H1 2009, leading to a total net lossof ? 5.1 million compared to the net loss including discontinuedoperations at the end of June last year of ? 11.6 million.Earnings before interest, taxes, depreciation and amortization(EBITDA) for H1 2009 improved to ? - 3.6 million from ? - 6.8 millionfor the first six months of 2008 (continued operations). Higher grossprofit and lower expenditure for General & Administrative expensesand Research & Development is more than offsetting higher expenditurefor Marketing & Distribution. The operating loss improved from ? 7.9million in the first half of 2008 to ? 4.6 million in the same periodof 2009.Cash flow and cash positionDevgen's cash and cash equivalents amounted to ? 36.2 million on June30, 2009, as compared to ? 24.2 million on December 31, 2008, anincrease of ? 12 million[2].The cash provided by operating activities for the first six months of2009 amounted to ? 15.3 million. Net loss for the period of ? 5.1million was offset by working capital movements with as majorcomponent cash received for the update of the Research and TechnologyAgreement with Monsanto Company which was posted as deferred incometo be spread over the remaining term of the contract (ending October2011).Cash used in investing activities for the first six months of 2009amounted to ? 0.7 million. Investment in property, plant andequipment amounted to ? 1.1 million partly offset by interestreceived for an amount of ? 0.17 million and proceeds of sales ofproperty, plant and equipment (fixed assets relating to discontinuedoperations) for an amount of ? 0.2 million.Cash flow from financing activities amounted to ? -2.6 million forthe first six months of 2008. The repayment of a bank loan in Indiaalmost entirely explains the use of cash for financing activities.Consolidated balance sheetThe balance sheet total at June 30, 2009 amounted to ? 71 millionversus ? 57 million at December 31, 2008. Despite a reduction of thesolvency rate (equity versus total assets), down to 50% at June 30,2009 (vs. 71% at December 31, 2008), the balance sheet remains solid,with a cash position of ? 36.2 million (vs. ? 24.2 million atDecember 31, 2008). Current liabilities increased to ? 28.6 millionfrom ? 9.3 million. This includes deferred income for an amount of?19.4 million mainly relating to the ? 20 million received in cashfrom Monsanto Company in Q2, 2009.Outlook full year 2009RevenuesSeed sales are expected to exceed ? 9.0 million, representing 50percent growth versus last year. This is lower than targeted becauseof adverse climatic conditions, during both the production and thesales season in combination with a weak Indian rupee (-5%). In India,based on premium pricing and strong demand for our products combinedwith good cost management and low product returns, the company istargeting a bottom line corresponding to plan. The shortfall in seedsales is foreseen to be compensated by higher income out of researchcollaborations (? 6 million). Sales of nematicides in 2009 areexpected to not yet contribute significantly to the top line.Total revenues are therefore expected to exceed ? 15 million.Burn rate and cash positionThe burn rate is estimated at ? 12 million by year end down from aninitial forecast of ? 19 million. This is mainly due to higherrevenues out of research collaborations. The effect of movements inworking capital will however completely offset the operational burnrate, including investments and the repayment of a loan. Net effecton the cash position is estimated to be positive for an amount of ? 2million resulting in a cash position at year end of approximately ?26 million.R&D expenditure is expected to total approximately ? 9 million,slightly lower than initially budgeted.AUDITOR'S REPORTLIMITED REVIEW REPORT ON THE CONSOLIDATED HALF-YEAR FINANCIALINFORMATION FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2009To the board of directorsWe have performed a limited review of the accompanying consolidatedcondensed balance sheet, condensed income statement, condensedstatement of comprehensive income, condensed cash flow statement andcondensed statement of changes in equity (jointly the "interimfinancial information") of DEVGEN NV ("the company") and itssubsidiaries (jointly "the group") for the six-month period endedJune 30, 2009. The board of directors of the company is responsiblefor the preparation and fair presentation of this interim financialinformation. Our responsibility is to express a conclusion on thisinterim financial information based on our review.The interim financial information has been prepared in accordancewith IAS 34, "Interim Financial Reporting" as adopted by the EU.Our limited review of the interim financial information was conductedin accordance with the recommended auditing standards on limitedreviews applicable in Belgium, as issued by the "Institut desRéviseurs d'Entreprises/Instituut van de Bedrijfsrevisoren". Alimited review consists of making inquiries of group management andapplying analytical and other review procedures to the interimfinancial information and underlying financial data. A limited reviewis substantially less in scope than an audit performed in accordancewith the auditing standards on consolidated annual accounts as issuedby the "Institut des Réviseurs d'Entreprises/Instituut van deBedrijfsrevisoren". Accordingly, we do not express an audit opinion.Based on our limited review nothing has come to our attention thatcauses us to believe that the interim financial information for thesix-month period ended June 30, 2009 is not prepared, in all materialrespects, in accordance with IAS 34 Interim Financial Reporting asadopted by the EU.Diegem, 26 August 2009The statutory auditorDELOITTE Bedrijfsrevisoren / Reviseurs d'EntreprisesSC s.f.d. SCRLRepresented by Gert Van Hees and Gino DesmetFor the Interim financial report for the first six months endede 30June, 2009 please consult www.devgen.comCONFERENCE CALL AND WEBCASTDevgen will conduct a conference call on Friday, August 28, 2009 at11 am which will also be simultaneously broadcasted via internet. Theevent is open to the public and is accessible via www.devgen.com andvia telephone at +32 (0)2 290 14 07. To ask questions during the Q&Asession, please join the event via telephone 10 minutes prior to thestart of the conference call. A recording of the event will also bemade available at www.devgen.com shortly after the call.For more information on Devgen, see www.devgen.comor contact:Thierry Bogaert, CEO WimGoemaere, CFOTel. +32 9 324.24.24 Tel. +329324.24.24Thierry.Bogaert(at)devgen.com Wim.Goemaere(at)devgen.comThis press release may contain forward-looking statements containingthe words "anticipates", "expects" , "intends", "plans", "estimates","may" and "continues" as well as similar expressions. Such forwardlooking statements may involve known and unknown risks, uncertaintiesand other factors which might cause the actual results, performanceor achievements of Devgen to be materially different from any futureresults or achievements expressed or implied by such forward-lookingstatements. Factors that could cause or contribute to suchdifferences include, among others: agricultural risks anddifficulties, including weather factors, diseases and pests, thecosts and requirements of regulatory compliance and the speed withwhich approvals are received; public acceptance of biotechnologyproducts; political, economic and social developments in countrieswhere Devgen operates and other risks and factors detailed in thecompany's most recent annual report.These forward looking statements speak only as of the date ofpublication of this document. Devgen disclaims any obligation toupdate such forward looking statements in this document to reflectany change in its expectations, conditions or circumstances on whichsuch statement is based, unless required by law or regulation. Thisdocument does not constitute, or form part of, any offer orinvitation to sell or issue, or any solicitation of any offer, topurchase or subscribe for any securities issued by Devgen NV.[1] Including restricted cash for an amount of ? 1.4 million as perJune 30, 2009 and ? 4.8 million as per December 31, 2008.[2] Including restricted cash for an amount of ? 1.4 million as perJune 30, 2009 and ? 4.8 million as per December 31, 2008.http://hugin.info/135721/R/1337802/318924.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 28.08.2009 - 07:00 Uhr
Sprache: Deutsch
News-ID 5202
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 294 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Zwijnaarde 28 August 2009 - Devgen (Euronext: DEVG) reports 2009 Half
Year Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Devgen (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
