This release is a summary of Revenio Group’s January-December 2020 financial statement bulletin. The complete report is attached to this release as pdf-file. The stock exchange release is also available on the company’s website at www.reveniogroup.fi/en
Despite the exceptional circumstances, 2020 ended with very strong net sales and operating profit growth
- Net sales totaled EUR 19.7 (14.9) million, showing an increase of 31.7%
- The currency-adjusted growth of net sales in October–December was 35.9%, or 4.2% percentage points stronger than reported
- The strong development of the business was due to the increased demand for iCare intraocular pressure measuring devices and sensors, especially in the United States
- Operating profit was EUR 7.6 (5.2) million, 38.8% of revenue, up 46.2%
- EBITDA was EUR 8.3 (5.8) million, up 43.7%
- EUR 1.0 million was booked as contingent consideration release to other operating profit due to the non-realization of additional outstanding purchase price criteria
- Cash flow from operations totaled EUR 6.2 (6.6) million
- Revenio revised its earnings guidance on December 17, 2020 in terms of net sales, mainly due to higher-than-expected growth sales in the United States and estimated that net sales in July-December 2020 will be EUR 33.5 – 35.5 million, resulting in very strong growth. Profitability excluding non-recurring expenses was estimated to be at a strong level in accordance with the guidance published on October 12, 2020.
- Undiluted earnings per share came to EUR 0.222 (0.143)
- Net sales totaled EUR 61.1 (49.5) million, up 23.4%
- The currency-adjusted growth of net sales in January-December was 26.5%, or 3.1% percentage points stronger than reported
- Operating profit was EUR 17.1 (12.6) million, 28.1% of revenue, up 36.0%
- Operating profit for the reference period was weighed down by non-recurring acquisition costs amounting to EUR 2.8 million and the impact of the acquisition cost of CenterVue’s inventories and the EUR 1.9 million costs related to the impairment of Cutica occurring during the financial year
- Adjusted for non-recurring acquisition costs, the operating profit for the reference period was EUR 15.4 million, while the operating profit for the period, adjusted with the impairment for Cutica, amounted to EUR 19.1 million. In relation to the adjusted operating profit for the reference and review period, operating profit grew by 24.2% in the period.
- EBITDA was EUR 21.7 (14.6) million
- EBITDA for the reference period was weighed down by non-recurring acquisition costs amounting to EUR 2.8 million and the impact of the acquisition cost of CenterVue’s inventories.
- EBITDA adjusted for non-recurring acquisition costs was EUR 17.4 million in the reference period. In relation to the adjusted EBITDA for the reference period, EBITDA grew by 24.8% in the review period
- The Annual General Meeting of June 8, 2020 confirmed a dividend of EUR 0.30 (0.28)
- Cash flow from operating activities was EUR 15.2 (12.4)
- Undiluted earnings per share came to EUR 0.505 (0.365)
- The Board of Directors will propose to the Annual General Meeting of March 17, 2021 that a per-share dividend of EUR 0.32 (0.30) be paid
Key consolidated figures, EUR million
|Oct–Dec/2020||Oct-Dec/2019||Change %||Jan-Dec/2020||Jan-Dec/2019||Change %|
|Gross margin, %||69.3||70.9||-1.6||71.0||69.8||1.2|
|Operating profit, EBIT||7.6||5.2||46.2||17.1||12.6||36.0|
|Operating profit, %, EBIT,%||38.8||34.9||3.8||28.1||25.5||2.6|
|Return on investment (ROI), %||8.1||9.4||-1.3||18.1||22.6||-4.5|
|Return on equity (ROE), %||8.8||9.0||-0.2||19.9||22.7||-2.8|
|Earnings per share, undiluted|
|Dec 31 2020||Dec 31 2019||Change, %|
|Equity ratio, %||60.9||58.6||2.3|
|Net gearing, %||-2.4||3.4||-5.8|
Financial guidance for 2021
Covid-19 pandemic continues to cause uncertainty related to the markets. Revenio Group’s exchange rate-adjusted net sales are estimated to grow strongly from the previous year and profitability is to remain at a good level without non-recurring items.
President & CEO Jouni Toijala comments on 2020:
"The year 2020 will go down in history as an exceptional year marked by the Covid-19 pandemic. In these exceptional circumstances, we again achieved excellent performance and the fast adoption of new and innovative ways of working and a proactive approach delivered results. Our positive profit warning in July- December regarding net sales growth was an indication of our entire organization's excellent ability to adapt quickly to the changed situation.
In 2020, the impact of the Covid-19 pandemic were seen in our global business as challenges in arranging customer meetings, whereas the increased hygiene requirements were reflected in exceptionally strong demand for both iCare intraocular pressure measurement devices and their single-use probes throughout the year. We responded to the increased demand by expanding probe production capacity. The unique features of the iCare intraocular pressure measurement devices demonstrated their strengths, allowing patient measurements to continue uninterrupted in a market situation marked by the pandemic.
In our industry, the focus of health care was largely on patient-critical tasks, and other matters were postponed as less urgent to a later date. The Covid-19 restrictions affected sales of iCare retinal imaging devices particularly in early 2020, as they are capital goods and require in-person meetings for both sales and installation. Their sales began to pick up from May onwards towards the end of the year, with deliveries also resuming. However, we expect the Covid-19 restrictions to continue to have some impact on imaging device sales and customer deliveries in 2021.
The iCare DRSplus retinal imaging device, in particular, has been well received on the market, and demand for the device was strong despite the fact that the product launch took place at the start of the pandemic, and we were not able to launch it at full capacity yet. We believe that we have developed the best product on the market in this product group with a device that allows faster and fully automated high-resolution pictures.
Fixed costs were at an exceptionally low level throughout 2020 due to the travel restrictions imposed because of the Covid-19 pandemic. Opportunities for physical customer meetings were extremely limited, and important industry congresses were transferred online or cancelled altogether.
The United States is the single largest health technology market, and our sales there grew strongly during 2020. Demand was particularly strong for iCare intraocular pressure measurement devices and their single-use probes. Sales in the US were boosted by some unusually large orders.
The development of Ventica and Cutica continued as planned. We also continued clinical trials and the development of artificial intelligence.
During the fall, we successfully conducted remote follow-up audits under the Medical Device Single Audit Program (MDSAP) in both Finland and Italy. MDSAP certification is also recognized by the authorities in the United States, Canada, Australia, Brazil, and Japan. We have also been preparing for the adoption of the new European Medical Device Regulation (MDR) as scheduled in spring 2021.
We continued to further develop our corporate social responsibility program and we have defined our responsibility goals. Our corporate social responsibility priorities are based on our strategic guidelines and the value we create for stakeholders, society, the environment, and the climate. In every aspect of our operations, we take into account the special characteristics of the business and operating environment in the field of health technology and support the UN’s sustainable development goals.
Due to the acquisition of CenterVue in April 2019, we are now operating on a considerably larger market, and our position as a global supplier of ophthalmic devices for diagnostics of the eye has strengthened significantly. Our product portfolio covers intraocular pressure measurement devices (tonometers), retinal imaging devices, and perimeters. We have expanded from the diagnosis of glaucoma and its monitoring during treatment to the detection of eye diseases and their monitoring during treatment.
Our outlook for 2021 is positive, and we welcome the new year with enthusiasm. We plan to invest in the continuous development of our product portfolio and building our global competences, as well as in digital marketing. We combined all our ophthalmic products under the unified iCare brand. The synergies we have already achieved through the acquisition, especially in terms of sales and marketing and the supply chain, will allow us to further strengthen our competitiveness and market position.
Our success would not be possible without the commitment of our personnel, partners, and owners to our common goals. I would therefore like to express my warmest thanks to our customers, employees, partners, and investors for the exceptional past year.”
Revenio will arrange an audiocast conference call primarily aimed at investors, analysts, and the media on Thursday, February 11, 2021 at 3:30 p.m. EET. At the audiocast conference, Revenio’s President & CEO Jouni Toijala and CFO Robin Pulkkinen will present the company’s results for 2020. The invitation to the event has been published on February 8, 2021 as a press release and can be found on the website at: https://www.reveniogroup.fi/en/investors/release?slug=invitation-to-revenios-audiocast-and-conference-call-on-financial-statements-for-the-year-2020
Revenio Group Corporation
Board of Directors
For further information, please contact:
President & CEO Jouni Toijala, tel. +358 50 484 0085
Robin Pulkkinen, CFO, tel. +358 50 505 9932
Nasdaq Helsinki Oy
Financial Supervisory Authority (FIN-FSA)
The Revenio Group in brief
Revenio is a health tech group operating on the international market and a global leader in ophthalmological devices. Revenio Group's ophthalmic diagnostic solutions include intraocular pressure (IOP) measurement devices (tonometers), retinal imaging devices, and perimeters under the iCare brand. The main tools for the detection and diagnosis of glaucoma and its monitoring during treatment are intraocular pressure measurement (tonometry), retinal imaging, and visual field tests (perimetry).
The Revenio Group comprises Revenio Group Corporation, Icare Finland Oy, Icare USA Inc., Revenio Italy S. R. L, CenterVue SpA, Revenio Research Oy, Done Medical Oy, and Oscare Medical Oy.
In 2020, the Group's net sales totaled EUR 61.1 million, with its operating profit standing at MEUR 17.1. Revenio Group Corporation is listed on Nasdaq Helsinki with the trading code REG1V.