Biotage () : Interim report January – June 2021

Biotage AB (publ)

Interim Report January - June 2021

Record quarterly net sales

Record quarterly net sales

April-June

• Net sales amounted to SEK 303.5 (254.2) million, an increase of 19.4 percent and an organic* growth of 32.1 percent.
• The operating profit amounted to SEK 62.5 (24.5) million.
• The operating margin was 20.6 percent (9.6).
• Profit after tax amounted to SEK 46.0 (32.2) million.
• Earnings per share were SEK 0.71 (0.49) before dilution and SEK 0.70 (0.49) after dilution.
• Cash flow from operations increased to SEK 92.3 (57.0) million.
• Net cash* as of March 31 amounted to SEK 161.1 (157.0) million.
• Liquid assets amounted to SEK 278.6 (371.3) million.
• Liabilities to credit institutions amounted to SEK 0 (110.0) million.
• A dividend of SEK 1.50 per share was paid for a total amount of SEK 97.8 million.
• On May 10, Annette Colin announced that she would be resigning from her position as CFO.

January-June

• Net sales amounted to SEK 584.8 (531.6) million, an increase of 10.0 percent and an organic* growth of 21.6 percent.
• The operating profit amounted to SEK 141.9 (85.9) million.
• The operating margin was 24.3 percent (16.2).
• Profit after tax amounted to SEK 106.0 (93.6) million.
• Earnings per share were SEK 1.63 (1.44) before dilution and SEK 1.62 (1.44) after dilution.
• Cash flow from operations increased to SEK 159.9 (117.8) million.
• On May 10, Annette Colin announced that she would be resigning from her position as CFO.

Significant events after the end of the reporting period

• On July 1, Biotage announced that Maja Nilsson has been appointed as the new CFO, starting October 1.

*See definitions on pages 21-22

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Record quarterly net sales

Financial overview

Second quarterSix-month periodFull year

Amounts in SEK millions	Q2 2021	Q2 2020 Jan-Jun 2021	Jan-Jun 2020	2020
Net sales	303.5	254.2	584.8	531.6	1 092.3
Change, %	19.4%	-9.9%	10.0%	0.3%	-0.8%
of which:
- Organic growth, %	32.1%	-12.1%	21.6%	-2.6%	1.4%
- Currency effects, %	-12.7%	2.2%	-11.6%	2.8%	-2.2%
- Acquistions/divestments, %	-	-	-	0.1%	0.0%
Gross profit	182.2	154.1	359.6	327.5	666.7
Gross margin, %	60.0%	60.6%	61.5%	61.6%	61.0%
Operating profit (EBIT)	62.5	24.5	141.9	85.9	206.2
Operating margin (EBIT), %	20.6%	9.6%	24.3%	16.2%	18.9%
Profit for the period	46.0	32.2	106.0	93.6	175.3
Earnings per share, SEK	0.70	0.49	1.62	1.44	2.69
Cashflow from operating activities	92.3	57.0	159.9	117.8	279.0

Net sales, SEK millions

310								1 200
300								1 150
290
280								1 100
270								1 050
260
250								1 000
240								950
230
220								900
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
	2019			2020				2021
				Sales Q		Sales LTM

Operating profit, SEK millions

90								300
80								250
70
60								200
50								150
40
30								100
20								50
10
0								0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
	2019				2020			2021
				EBIT Q	EBIT LTM

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Record quarterly net sales

Distribution of net sales

Geographic market

Q2

32% (37%)	38% (39%)

30% (24%)

Americas EMEA APAC

LTM

31%

40%

29%

Americas EMEA APAC

*See definitions on pp. 21-22

System and aftermarket

Q2

42% (40%)

48% (49%)

10% (11%)

Consumables		Service		System

LTM

40%

49%

11%

Consumables		Service		System

Product areas

Q2

3% (3%)

15% (15%)

50% (49%)

32% (33%)

Organic Chemistry Analytical Chemistry Scale-up Biomolecules

LTM

3%

13%

52%

32%

Organic Chemistry Analytical Chemistry Scale-up Biomolecules

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Message from the CEO

Message from the CEO

Third consecutive quarter with double-digit growth

During the second quarter, Biotage continued to grow with good profitability. While we increased efficiency during the pandemic, we also secured our revenue streams. In line with our strategy, we are moving into attractive niche areas in pharmaceutical development and manufacturing, and helping our customers to achieve more efficient and environmentally friendly workflows.

Biotage continues to grow significantly more than the market. The second quarter was the third consecutive quarter with double-digit organic growth. During this period, reported sales increased by 19.4 percent, organically by 32.1 percent and, for the first time, we reported a single quarter with sales of more than SEK 300 million. Our business growth journey continues with good margins. The operating margin, EBIT, for the quarter was 20.6 percent, an increase of 11.0 pervcentage points compared to the same period previous year.

We see that our ongoing work to generate new revenue and by streamlining operations is paying off. Further, our focus on cash flow have strengthened our balance sheet. The pandemic has resulted in reduced travel costs, among other things, which we now want to build on in order to further strengthen our strong financial position. The work to expand capacity and automate production at our unit in Cardiff, Wales, is proceeding according to plan. The first part of the extension there is expected to be completed this summer.

In June, we entered another interesting niche in the field of biomolecules, with the launch of our innovative and automated platform for cleaning plasmids, Biotage® PhyPrep. Together with our consumables Biotage® PhyTip, we enable our customers to discover new treatment methods for patients using biological molecules. This is yet another example of how Biotage helps to unlock the potential of science to solve global societal issues.

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