REVENIO GROUP OYJ The figures in parentheses refer to the corresponding period in the previous year unless otherwise stated.
An excellent year of strong and profitable growth
October–December 2021
- Net sales totaled
EUR 23.8 (19.7) million, an increase of 20.7% - The currency-adjusted growth of net sales was 18.7%
- Operating profit was
EUR 7.1 (7.6) million, or 29.9% of net sales, down by 6.8% - Adjusted operating profit was
EUR 7.7 million , or 32.6% of net sales, up by 1.4%. TheEUR 0.6 million impairment of all remaining capitalized development costs of Cutica had a negative impact on the operational result. - EBITDA was
EUR 8.6 (8.3) million, or 36.0% of net sales, up by 3.2% - The very strong sales were particularly attributable to good performance of our imaging devices in all our main markets combined with high order fulfillment despite global component shortages
- Cash flow from operating activities totaled
EUR 11.0 (6.2) million. The positive development was driven mostly by efficient management of working capital. - Undiluted earnings per share came to
EUR 0.206 (0.222)
January–December 2021
- Net sales totaled
EUR 78.8 (61.1) million, an increase of 29.0% - The currency-adjusted growth of net sales was 28.4%
- Operating profit was
EUR 22.1 (17.1) million, or 28.1% of net sales, up by 29.0% - Adjusted operating profit was
EUR 23.4 million , or 29.7% of net sales, up by 22.8% compared to the adjusted operating profit for the comparison period. TheEUR 0.6 million impairment of Cutica and theEUR 0.7 million non-recurring acquisition costs had a negative impact on the operational result for the reporting period. Comparison period adjustment includes the Cutica-relatedEUR 1.9 million impairment. - EBITDA was
EUR 25.7 (21.7) million, or 32.7% of net sales, up by 18.6%. EBITDA adjusted for theEUR 0.7 million non-recurring acquisition costs wasEUR 26.4 million , or 33.5% of net sales, up by 21.7%. Revenio updated its financial guidance for 2021 in August- The Oculo acquisition was completed in April. Oculo is an eye care software platform that combines clinical communication, telehealth, remote patient monitoring, and data analytics. Operational development expenses of Oculo have affected the Group’s relative profitability in 2021.
- Cash flow from operating activities totaled
EUR 21.5 (15.2) million - Undiluted earnings per share came to
EUR 0.652 (0.505) - At Capital Markets Day held in March,
Revenio presented its updated strategy to focus on clinical eye care solutions - The Annual General Meeting was held on
March 17, 2021 . The dividend was confirmed asEUR 0.32 . - The Board of Directors will propose to the Annual General Meeting of
April 8, 2022 , that a dividend ofEUR 0.34 per share be paid
Key consolidated figures, EUR million
| 10-12/2021 | 10-12/2020 | Change-% | 1-12/2021 | 1-12/2020 | Change-% | |
| Net sales | 23.8 | 19.7 | 20.7 | 78.8 | 61.1 | 29.0 |
| Currency-adjusted sales | 23.7 | 20.0 | 18.7 | 79.6 | 62.0 | 28.4 |
| Gross margin | 16.8 | 13.7 | 23.2 | 55.8 | 43.3 | 28.6 |
| Gross margin - % | 70.8 | 69.3 | 1.4 | 70.8 | 71.0 | -0.2 |
| EBITDA | 8.6 | 8.3 | 3.2 | 25.7 | 21.7 | 18.6 |
| EBITDA-% | 36.0 | 42.1 | -6.1 | 32.7 | 35.5 | -2.9 |
| Adjusted EBITDA | 8.6 | 8.3 | 3.2 | 26.4 | 21.7 | 21.7 |
| Adjusted EBITDA - % | 36.0 | 42.1 | -6.1 | 33.5 | 35.5 | -2.0 |
| Operating profit, EBIT | 7.1 | 7.6 | -6.8 | 22.1 | 17.1 | 29.0 |
| Operating profit-%, EBIT | 29.9 | 38.8 | -8.9 | 28.1 | 28.1 | 0.0 |
| Adjusted Operating profit, EBIT | 7.7 | 7.6 | 1.4 | 23.4 | 19.1 | 22.8 |
| Adjusted Operating profit-%, EBIT | 32.6 | 38.8 | -6.2 | 29.7 | 31.2 | -1.5 |
| Return on investment-%, ROI | 7.2 | 8.1 | -0.9 | 22.4 | 18.1 | 4.3 |
| Return on equity-%, ROE | 7.4 | 8.8 | -1.4 | 23.4 | 19.9 | 3.5 |
| Undiluted earnings per share | 0.206 | 0.222 | 0.652 | 0.505 | ||
| 31.12.021 | Change, %-point | |||||
| Equity ratio-% | 63.0 | 60.9 | 2.1 | |||
| Net gearing-% | -1.0 | -2.4 | 1.4 |
Financial guidance for 2022
Revenio Group’s exchange rate-adjusted net sales are estimated to grow strongly from the previous year and profitability, excluding non-recurring items, is estimated to remain at a good level.
President and CEO
“The final quarter was excellent for us despite component availability issues towards the end of the year due to the COVID-19 pandemic. As our markets re-opened, our successful multi-channel sales approach produced good results in all our key market areas, particularly in the final quarter. In addition, we gained a foothold in optical retail chains and global customer accounts, which added to our sales in the strong end-of-year period.
Sales of our retinal imaging devices saw very strong growth in 2021. In the coming years we estimate that sales of these products will grow faster than sales of our tonometers (intraocular pressure measurement (IOP) devices) as the retinal imaging device market is larger and we have succeeded in gaining market share in all our main markets. Sales of tonometers increased strongly in 2021, although we anticipate sales volumes returning to the growth trend seen in the years prior to the COVID-19 pandemic. During the year our tonometers were used to perform over 30 million patient measurements. With the continued strong sales of probes, we are now finalizing the installation of a new tonometer probe production line.
We have resolutely implemented our updated strategy, announced in
Innovative, high-quality products, global sales channels and delivery performance are key factors in our competitive success. In
In early 2021, we acquired the Australian Oculo business, a SaaS-based eye care platform combining clinical communication, telehealth, remote patient monitoring and data analytics. Oculo enhances clinical collaboration between health care professionals by bridging disconnected data silos, allowing for the sharing of patient data and images and, overall, facilitating better and more cost-effective eye care. Software solutions offer us a significant opportunity to increasingly broaden the utilization of the high-quality data generated by our iCare retinal imaging devices, perimeters, and tonometers devices as support for clinical decision-making. We have started several software-related pilot projects in 2021 and are working on a comprehensive eye care solution comprising both our devices and our software platform.
Over the next two years, we will be further intensifying our product development efforts. Our goal is to maintain our strong product strategy by bringing product innovations and new software solutions to the market.
As announced earlier, the Cutica skin cancer camera and the Ventica asthma system are no longer strategic focus areas for the Group. We are exploring the possibility of other interested parties continuing these businesses outside the
We place sustainability at the heart of our business. Based on our strategic guidelines, sustainability at
With the exceptional circumstances caused by the COVID-19 pandemic burdening daily lives, we have focused on the well-being of our personnel in 2021. According to surveys we have conducted amongst our employees, rest, nutrition, and exercise play an important role in coping with stress. We have found that shared lectures and coaching on well-being have played an important role in supporting managers and other employees, both at work and at home.
I wish to warmly thank our investors for the trust they have placed in us.
Impact of the COVID-19 pandemic and actions taken in 2021
The level of risk and uncertainty related to the global COVID-19 pandemic increased significantly again in the last quarter of 2021. However, despite the exceptional circumstances, customers and cooperation partners succeeded in organizing meetings and operating via remote access. Limitations on in-person meetings emphasized the importance of successful multi-channel sales approaches.
Since the early stages of the pandemic,
Towards the end of 2021, global challenges over the availability of components increased. The Group is monitoring the situation diligently. Due to a substantial increase in the costs of components, these increased costs will be reflected in product pricing also in 2022.
As the COVID-19 situation has called for increased attention to hygiene, sales of our tonometers and probes have been strong. Sales of imaging devices, on the other hand, require both in-person demonstrations as well as hands-on installation and training and any restrictions reflected in imaging device sales more easily.
Revenio Group’s balance sheet and cash flow remained strong throughout the financial period. The COVID-19 pandemic has not had a significant impact on the Group’s financial position. No material changes have been observed in customers’ liquidity.
Revenio Group’s strategy
The cornerstones of the Group’s strategy are:
- Focus fully on the eye care market
- Improve the quality of clinical diagnostics with targeted product innovations
- Transform clinical care pathways with eye care focused software solutions
- Continue to develop stronger distribution and build on iCare brand awareness and client experience
- Continue strong profitable growth
Financial review 2021
Net sales, profitability, and profit
October–December 2021
Revenio Group’s net sales October 1–December 31, 2021 were
Undiluted earnings per share came to
January–December 2021
Revenio Group’s net sales January 1–December 31, 2021 were
The Group’s operating profit in January–December was
Profit before taxes was
Undiluted earnings per share came to
Balance sheet, financial position and cash flow
The Group’s balance sheet total totaled
The Group’s equity was
The Oculo acquisition
Oculo is an eye care software platform that combines clinical communication, telehealth, remote patient monitoring and data analytics. As a SaaS based platform, Oculo is transforming eye care by enabling and enhancing clinical collaboration, bridging disconnected data silos for sharing data and images, and facilitating better and more cost-effective eye care. Oculo allows the sharing of clinical imaging, referrals, and other clinical correspondence between health care professionals securely and in real-time.
The Oculo acquisition is integral to the Group’s strategy and with it
Oculo’s operations are included in Revenio Group’s consolidated financial statements as of
Financial impacts of the acquisition
Revenio Group’s relative investment level in R&D as well as in sales and marketing have been on a somewhat higher level during 2021 and will continue to be also in 2022 than they were during 2020. Operations at Oculo incur very low variable costs, a factor which is expected to improve the Group’s overall gross margin. As a SaaS-based offering, Oculo software solutions sales are also expected to increase the share of recurring revenue in the Group’s total sales going forward.
Administration
Changes in the Group structure
The acquisition of the entire share capital of the
Personnel and management
On
| Average number of personnel during the financial year | |||
| 1–12/2021 | 1–12/2020 | ||
| 167 | 135 | ||
At the end of the year the number of employees was 184 (143), an increase of 41 employees. The increase mainly results from the recruitment of new employees. Wages, salaries and other remuneration paid in January–December amounted to
Board of Directors
Until the Annual General Meeting
Audit Committee
At its organizing meeting, held after the Annual General Meeting 2021, the Board re-elected from amongst its members the following members to serve on its Audit Committee:
The duties of the Audit Committee are to:
- monitor and assess the financial reporting system
- monitor and assess the efficiency of internal controls, internal auditing and risk management systems
- monitor and assess how legal agreements and other transactions between the Company and its related parties meet the requirements of the ordinary course of business and market terms
- monitor and evaluate the independence of the auditor and, in particular, the offering of services other than auditing by the auditor
- monitor the company’s auditing
- formulate the proposal for the appointment of the Company’s auditor by the Annual General Meeting
In addition, the tasks of the Audit Committee include:
- monitoring the statutory auditing of the financial statements and consolidated financial statements as well as the reporting process and ensure their accuracy
- supervising the financial reporting process
- reviewing the effectiveness of internal control and risk management systems, the Group's risks, and the quality and scope of risk management
- approving the internal audit guidelines and reviewing the internal audit plans and reports
- reviewing the description of the main features of the internal control and risk management systems in relation to the financial reporting process, which is included in the Company's Corporate Governance Statement
- evaluating the independence and work of the statutory auditor and proposing a resolution on the election and fee of the auditor to the Annual General Meeting
- evaluating compliance with laws, regulations, and Company policies and monitoring significant litigations of Group companies
- executing any other duties bestowed upon it by the Board
At its organizing meeting, held after the Annual General Meeting 2021, the Board elected from amongst its members the following members to serve on its
The duties of the
- preparing a proposal to the Annual General Meeting on the members of the Board of Directors
- preparing a proposal to the Annual General Meeting on the remuneration of Board members
- preparatory work for the appointment of the President & CEO
- preparing proposals related to the salary and other financial benefits of the President & CEO and other management
- preparing matters related to the Company’s remuneration schemes
- assessing the remuneration of the President & CEO and other management and ensuring the appropriateness of the remuneration schemes
- preparing the Remuneration Report
- answering questions related to the Remuneration Report at the Annual General Meeting
Auditor
At the Annual General Meeting 2021
Corporate responsibility
Revenio Group’s key stakeholders comprise the Company’s customers, personnel, cooperation partners and shareholders. The impacts of the Company’s operations on these stakeholders have been evaluated by a materiality assessment performed in conjunction with the preparation of the Group’s sustainability principles. We are in active dialogue on the realization and development of sustainable operating models with various stakeholders.
Risks related to corporate responsibility are managed as a part of the Company’s continuous risk management process. The operational realization of corporate responsibility is supported by the Group’s quality assurance systems.
Revenio Group’s corporate responsibility program covers financial, social, and environmental responsibilities. For
Social responsibility means that
To support its responsibility program,
Shares, share capital, and management and employee holdings
On
The Company has one class of shares, and all shares confer the same voting rights and an equal right to dividends and the Company’s funds. On
The Company did not buy back any of its shares during the financial period. At the end of the financial period, the Company held 117,759 of its own shares.
During the financial period, the number of shares increased by 22,164 following subscriptions made on the basis of the 2015C option schemes. After these subscriptions, the number of
In late 2015, the employees of
The Annual General Meeting of
Authorization for the purchase of own shares
The Annual General Meeting of
Authorization to decide on a share issue and on the granting of stock options and other special rights giving entitlement to shares
The Annual General Meeting of
This authorization is to be used to finance and implement any prospective corporate acquisitions or other transactions, to implement the Company’s share-based incentive plans, or for other purposes determined by the Board.
The authorization is effective until the end of the Annual General Meeting held in 2022, yet no further than until
Share option schemes
Based on the share issue authorization granted by the Annual General Meeting of
These option rights are divided into three series: Series A (50,000), Series B (50,000), and Series C (50,000). The subscription periods for options were as follows: Series A:
In 2021, a total of 22,164 new shares were subscribed to, based on the option rights. At the end of the financial period the Company has no existing option schemes.
Share incentive plans
On
Based on the ended earning period of the share-based incentive plan 2018-2020, a total of 12,253 company shares were transferred to the company's key personnel participating in the plan on
Furthermore, the Company’s Board of Directors decided during March, 2021, on a restricted share plan for five key employees of the Oculo business. The plan was established as part of a long-term incentive and commitment program to support the realization of Revenio Group’s strategy, harmonize the interests of shareholders and plan participants and increase the Company's value and profits in the long term, as well as to strengthen the participants’ commitment to
Information on the remuneration schemes currently used in
Flagging notifications
In the period of January 1–December 31, 2021,
Management transactions
Transactions in
Trading on Nasdaq Helsinki
During the period January 1–December 31, 2021, Revenio Group Corporation’s share turnover on the Nasdaq Helsinki exchange totaled
Summary of trading on Nasdaq Helsinki on January 1–December 31, 2021
| January–December 2021 | Turnover, number of shares | Value total, EUR | Highest, EUR | Lowest, EUR | Average price, EUR | Latest, EUR |
| REG1V | 9,506,333 | 538,562,291 | 72.00 | 45.70 | 56.65 | 55.55 |
| Market value, EUR | 1,482,135,994 | 1,340,945,286 |
| Number of shareholders | 22,634 | 20,184 |
Risks and uncertainty factors
Risks
The Group’s strategic risks include competition in all segments, threats posed by new competing products and other actions by rivals that may affect the competitive situation. There are strategic risks also related to the ability of the Group to succeed in its R&D activities and to maintain a competitive product mix. The Group develops new technologies at
Acquisitions and the purchase of health technology-related assets with growth potential are part of the Group’s strategy. The success of acquisitions by the Group may have a significant impact on
Strategic risks and the need for action are regularly monitored and assessed in connection with day-to-day management, monthly Group reporting, and annual strategy reviews.
Operational risks are associated with the retention and development of major customer relationships, activities amongst the distribution network, and success in expanding the customer base and markets. In the health technology sector, there are particular operational risks related to business expansion into new markets, such as countries' marketing authorizations and other national regulatory activities related to medical devices and the local health care market. Success in strategic health technology R&D projects can also be classified as an operational risk. Furthermore, global shortage of electronics components may cause operational risks.
Due to the health technology sector’s stringent quality requirements, operational risks related to the manufacture, product development, and production control of medical devices are estimated to be higher than average for industry.
Damage-related risks are covered by insurance. Property and business interruption insurance provides protection against risks in these areas. The business activities of the Group are covered by international liability insurance.
Financial risks can be further categorized into credit, interest-rate, liquidity, and foreign exchange risks. To manage credit loss risks, the Group has credit insurance covering all the Group's companies. The Board assesses financial risks and other financial matters in its monthly meetings, or more frequently, as necessary. If required, the Board provides decisions and guidelines for the management of financial risks including, for example, interest-rate and currency hedging decisions. Liquidity risk can be affected by the availability of external financing, the development of the Group’s credit standing, trends in business operations, and changes in the payment behavior of customers. Cash forecasts, drawn up for periods of up to 12 months are employed to monitor liquidity risks.
The management of corporate responsibility risks is a part of the Company’s risk management process. Under this process, the risks are assessed yearly.
Moreover, global pandemics such as Covid-19 may have direct and indirect effects on
Annual General Meeting and currently valid authorizations of the Board of Directors
Decisions by the Annual General Meeting of
1. Financial statements, Board and Auditors
The Annual General Meeting (AGM) confirmed the Company's financial statements for the financial year January 1–December 31, 2020 and discharged the members of the Board of Directors and the Managing Director from liability.
The AGM decided that five members be elected to the Board of Directors and re-elected Pekka Rönkä,
The AGM decided that the Chairman of the Board shall be entitled to an annual emolument of
The AGM further decided that an attendance allowance of
Any travel expenses of the members of the Board or Board Committees will be compensated in accordance with the Company’s travel expense regulations.
The AGM re-elected
2. Annual profit distribution and dividend distribution
The AGM decided to accept the Board's proposal on profit distribution, according to which the parent Company’s profit for the financial period,
3. Authorizing the Board of Directors to decide to repurchase the Company's own shares
The Annual General Meeting authorized the Board to make the decision to buy back a maximum of 1,332,947 of the Company's own shares in one or several tranches using the Company's non-restricted equity capital. Shares may be bought back to improve the Company’s capital structure, to finance or implement any prospective corporate acquisitions or other transactions, to implement the Company’s share-based incentive plans, to pay the remunerations for the members of the Board or for other purposes determined by the Board.
The Company may buy back shares in public trading on marketplaces whose rules and regulations allow the Company to trade in its own shares. In such case, the Company shall buy back shares through a directed purchase, that is, in a proportion other than its shareholders’ holdings in Company shares, with the consideration for the shares based on their publicly-quoted market price so that the minimum price of the purchased shares equals the lowest market price quoted in public trading during the authorization period, and, similarly, their maximum price equals the highest market price quoted in public trading during that period.
The authorization is effective until the end of the Annual General Meeting held in 2022, yet no further than until
4. Authorizing the Board of Directors to decide on a share issue and on granting stock options and other special rights entitling to shares
The Annual General Meeting authorized the Board of Directors to decide to issue a maximum of 1,332,947 shares or to grant special rights (including stock options) entitling to shares, as referred to in chapter 10, section 1 of the Limited Liability Companies Act, in one or several tranches.
This authorization may be used to finance and implement any prospective corporate acquisitions or other transactions, to implement the Company’s share-based incentive plans, or for other purposes determined by the Board.
The authorization grants the Board the right to decide on all terms and conditions governing the share issue and the granting of said special rights, including the subscribers or the recipients of said special rights and the payable consideration. The authorization also includes the right to issue shares by deviating from the shareholders’ pre-emptive rights, i.e. by issuing shares in a directed manner. The authorization of the Board covers both the issue of new shares and the transfer of any shares that may be held by the Company.
The authorization is effective until the end of the Annual General Meeting held in 2022, yet no further than until
Proposal by the Board of Directors for distribution of profit
The Group’s profit for the financial year 2021 was
The Board of Directors finds that the proposed distribution of profit does not endanger the liquidity of the parent Company or the Group.
Events after the financial period
Financial information in 2022
The interim report Q1/2022 will be published on
The financial results 2021 as an audiocast
Major shareholders on
| No. of shares | % | ||
| 1 | William Demant Invest A/S | 3,509,837 | 13.15% |
| 2 | SEB Funds | 1,295,568 | 4.86% |
| 3 | Columbia Threadneedle | 1,156,515 | 4.33% |
| 4 | Capital Group | 792,790 | 2.97% |
| 5 | Vanguard | 701,508 | 2.63% |
| 6 | Groupama Asset Management | 612,274 | 2.29% |
| 7 | Ilmarinen Mutual Pension Insurance Company | 520,000 | 1.95% |
| 8 | BlackRock | 410,444 | 1.54% |
| 9 | Nordea Funds | 371,113 | 1.39% |
| 10 | TIN Funds | 367,869 | 1.38% |
* Monitor by
FINANCIAL STATEMENTS JANUARY 1–DECEMBER 31, 2021, TABLES
Accounting policies applied in the preparation of the financial statements
This financial statement release has been drawn up in accordance with IAS 34 Interim Financial Reporting and the same principles as the financial statements for 2020, except for the following amendments to the existing standards, which the Group has applied as of
Amendments made to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 as part of Phase 2 of Interest Rate Benchmark Reform and Covid-19.
In the management’s estimate, the adoption of the above-mentioned standards does not have a material impact on the Group’s financial statements.
The figures of the financial statement release are unaudited.
Consolidated comprehensive income statement (EUR million)
| 10-12/2021 | 10-12/2020 | 1-12/2021 | 1-12/2020 | |
| 23.8 | 19.7 | 78.8 | 61.1 | |
| Other operating income | 0.8 | 1.2 | 0.9 | 1.3 |
| Materials and services | -7.0 | -6.0 | -23.0 | -17.7 |
| Employee benefits | -4.8 | -3.6 | -16.4 | -12.7 |
| Depreciation, amortization, and impairment | -1.4 | -0.7 | -3.6 | -4.6 |
| Other operating expenses | -4.2 | -2.9 | -14.5 | -10.2 |
| NET PROFIT/LOSS | 7.1 | 7.6 | 22.1 | 17.1 |
| Financial income and expenses (net) | 0.0 | -0.3 | 0.0 | -0.4 |
| PROFIT BEFORE TAXES | 7.2 | 7.4 | 22.1 | 16.7 |
| Income taxes | -1.7 | -1.5 | -4.8 | -3.4 |
| NET PROFIT | 5.5 | 5.9 | 17.3 | 13.4 |
| Other comprehensive income items | 0.1 | -0.6 | 0.1 | -0.6 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 5.6 | 5.3 | 17.5 | 12.8 |
| Earnings per share, undiluted, EUR | 0.206 | 0.222 | 0.652 | 0.505 |
| Earnings per share, diluted, EUR | 0.206 | 0.222 | 0.652 | 0.504 |
Consolidated balance sheet (EUR million)
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Tangible assets | 2.6 | 2.0 |
| 59.8 | 50.4 | |
| Intangible assets | 18.2 | 16.9 |
| Right-of-use assets | 1.7 | 0.9 |
| Other receivables | 0.2 | 0.2 |
| TOTAL NON-CURRENT ASSETS | 82.4 | 70.4 |
| CURRENT ASSETS | ||
| Inventories | 6.4 | 4.9 |
| Trade and other receivables | 9.2 | 9.3 |
| Deferred tax assets | 1.3 | 1.0 |
| Cash and cash equivalents | 25.2 | 28.9 |
| TOTAL CURRENT ASSETS | 42.2 | 44.0 |
| TOTAL ASSETS | 124.6 | 114.4 |
| SHAREHOLDERS’ EQUITY AND LIABILITIES | ||
| SHAREHOLDERS' EQUITY | ||
| Share capital | 5.3 | 5.3 |
| Fair value reserve | 0.3 | 0.3 |
| Reserve for invested unrestricted capital | 52.6 | 52.5 |
| Other reserves | 0.3 | 0.3 |
| Retained earnings/loss | 22.1 | 14.0 |
| Translationdifference | 0.0 | -0.3 |
| Own shares held by the company | -2.1 | -2.3 |
| TOTAL SHAREHOLDERS' EQUITY | 78.4 | 69.7 |
| LIABILITIES | ||
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 3.6 | 3.9 |
| Financial liabilities | 0.8 | 22.4 |
| Lease liabilities | 0.9 | 0.4 |
| TOTAL LONG-TERM LIABILITIES | 5.3 | 26.6 |
| CURRENT LIABILITIES | ||
| Trade and other payables | 16.9 | 12.6 |
| Provisions | 0.5 | 0.3 |
| Financial liabilities | 22.7 | 4.6 |
| Lease liabilities | 0.8 | 0.6 |
| TOTAL CURRENT LIABILITIES | 40.9 | 18.1 |
| TOTAL LIABILITIES | 46.2 | 44.7 |
| TOTAL SHAREHOLDERS' EQUITY | ||
| AND TOTAL LIABILITIES | 124.6 | 114.4 |
Consolidated statement of changes in equity (EUR million)
| Reserve for | |||||||
| invested | |||||||
| Share | unrestricted | Other | Retained | Translation | Own | Total | |
| capital | equity | Reserves | Earnings | difference | shares | Equity | |
| Balance | 5.3 | 52.5 | 0.6 | 14.0 | -0.3 | -2.3 | 69.7 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | -8.5 | 0.0 | 0.0 | -8.5 |
| Disposal and purchase of own shares | 0.0 | -0.2 | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 |
| Other direct entries to retained earnings | 0.0 | 0.0 | 0.0 | -0.6 | 0.0 | 0.0 | -0.6 |
| Used option rights | 0.0 | 0.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.3 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 17.2 | 0.3 | 0.0 | 17.5 |
| Balance | 5.3 | 52.6 | 0.6 | 22.1 | 0.0 | -2.1 | 78.4 |
| Reserve for | |||||||
| invested | |||||||
| Share | unrestricted | Other | Retained | Translation | Own | Total | |
| capital | equity | Reserves | Earnings | difference | shares | Equity | |
| Balance | 5.3 | 51.2 | 0.6 | 8.0 | 0.1 | -0.7 | 64.4 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | -7.9 | 0.0 | 0.0 | -7.9 |
| Disposal and purchase of own shares | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -1.6 | -1.5 |
| Other direct entries to retained earnings | 0.0 | 0.0 | 0.0 | 0.8 | 0.0 | 0.0 | 0.8 |
| Used option rights | 0.0 | 1.3 | 0.0 | 0.0 | 0.0 | 0.0 | 1.3 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 13.2 | -0.4 | 0.0 | 12.8 |
| Balance | 5.3 | 52.5 | 0.6 | 14.0 | -0.3 | -2.3 | 69.7 |
Consolidated cash flow statement (EUR million)
| 10-12/2021 | 10-12/2020 | 1-12/2021 | 1-12/2020 | ||
| CASH FLOW FROM OPERATIONS | |||||
| Profit for the period | 5.5 | 5.9 | 17.3 | 13.4 | |
| Adjustments: | |||||
| Depreciation, amortization, and impairment | 1.4 | 0.7 | 3.6 | 4.6 | |
| Other non-cash items | 0.3 | -0.5 | 0.6 | 0.5 | |
| Interest and other financial expenses | 0.1 | 0.2 | 0.4 | 0.4 | |
| Interest income and other financial income | -0.1 | 0.0 | -0.4 | 0.0 | |
| Taxes | 1.7 | 1.5 | 4.8 | 3.4 | |
| Other adjustments | -0.1 | 0.0 | -1.1 | 0.0 | |
| Change in working capital: | |||||
| Changes in sales and other receivables | -0.8 | -2.9 | 0.4 | -2.9 | |
| Changes in current assets | -0.6 | 0.1 | -1.5 | -1.4 | |
| Changes in trade and other payables | 4.3 | 2.3 | 2.2 | 1.0 | |
| Change in working capital, total | 2.9 | -0.5 | 1.1 | -3.3 | |
| Interest paid | -0.1 | -0.1 | -0.2 | -0.3 | |
| Interest received | 0.0 | 0.0 | 0.0 | 0.0 | |
| Taxes paid | -0.7 | -1.1 | -4.5 | -3.4 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | 11.0 | 6.2 | 21.5 | 15.2 | |
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| Acquisitions of subsidiaries less cash and cash equivalents at acquisition time | 0.0 | 0.0 | -11.3 | 0.0 | |
| Purchase of tangible assets | -0.5 | -0.4 | -1.2 | -0.8 | |
| Purchase of intangible assets | -0.6 | -0.1 | -1.0 | -0.7 | |
| Loans granted | 0.0 | 0.0 | 0.0 | -0.1 | |
| NET CASH FLOW FROM INVESTING ACTIVITIES | -1.1 | -0.5 | -13.5 | -1.6 | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| Repayments of loans | -1.1 | -1.1 | -3.2 | -2.2 | |
| Dividends paid | 0.0 | 0.0 | -8.5 | -7.9 | |
| Share subscription through exercised options | 0.0 | 0.4 | 0.3 | 1.3 | |
| Acquisition of own shares | 0.0 | 0.0 | 0.0 | -1.6 | |
| Payments of lease agreement liabilities | -0.2 | -0.2 | -0.7 | -0.7 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | -1.3 | -0.8 | -12.1 | -11.1 | |
| Net change in cash and credit accounts | 8.6 | 4.8 | -4.2 | 2.6 | |
| Cash and cash equivalents at beginning of period | 16.5 | 24.2 | 28.9 | 26.7 | |
| Effect of exchange rates | 0.1 | -0.1 | 0.5 | -0.4 | |
| Cash and cash equivalents at end of period | 25.2 | 28.9 | 25.2 | 28.9 | |
Key figures (EUR million)
| 1-12/2021 | 10-12/2021 | 1-12/2020 | 10-12/2020 | |
| Net sales | 78.8 | 23.8 | 61.1 | 19.7 |
| Ebitda | 25.7 | 8.6 | 21.7 | 8.3 |
| Ebitda-% | 32.7 | 36.0 | 35.5 | 42.1 |
| Operating profit | 22.1 | 7.1 | 17.1 | 7.6 |
| Operating profit-% | 28.1 | 29.9 | 28.1 | 38.8 |
| Pre-tax profit | 22.1 | 7.2 | 16.7 | 7.4 |
| Pre-tax profit-% | 28.1 | 30.1 | 27.4 | 37.5 |
| Net profit | 17.3 | 5.5 | 13.4 | 5.9 |
| Net profit-% | 22.0 | 23.0 | 21.9 | 29.8 |
| Gross capital expenditure | 15.7 | 2.5 | 2.4 | 0.6 |
| Gross capital expenditure-% | 19.9 | 10.5 | 3.9 | 2.9 |
| R&D costs | 6.5 | 1.7 | 4.6 | 1.2 |
| R&D costs-% from net sales | 8.3 | 7.2 | 7.5 | 5.9 |
| Gearing-% | -1.0 | -1.0 | -2.4 | -2.4 |
| Equity ratio-% | 63.0 | 63.0 | 60.9 | 60.9 |
| Return on investment-% (ROI) | 22.4 | 7.2 | 18.1 | 8.1 |
| Return on equity-% (ROE) | 23.4 | 7.4 | 19.9 | 8.8 |
| Undiluted earnings per share, EUR | 0.652 | 0.206 | 0.505 | 0.222 |
| Diluted Earnings per share, EUR | 0.652 | 0.206 | 0.504 | 0.222 |
| Equity per share, EUR | 2.94 | 2.94 | 2.61 | 2.61 |
| Average no. of employees | 167 | 182 | 143 | 133 |
| Cash flow from operating activities | 21.5 | 11.0 | 15.2 | 6.2 |
| Cash flow from investing activities | -13.5 | -1.1 | -1.6 | -0.5 |
| Net cash used in financing activities | -12.1 | -1.3 | -11.1 | -0.8 |
| Total cash flow | -4.2 | 8.6 | 2.6 | 4.8 |
Alternative growth indicators used in financial reporting
Revenio Group’s reported net sales are strongly affected by fluctuations in the exchange rate between the euro and the US dollar. As an alternative growth indicator, the Company also presents net sales with the exchange rate effect eliminated.
| Alternative growth indicator (EUR thousand) | 1–12/2021 | |
| Reported net sales | 78,778 | |
| Effect of exchange rates on net sales | 786 | |
| Net sales adjusted by the effect of exchange rates | 79,564 | |
| Growth in net sales, adjusted by the effect of exchange rates | 28.4% | |
| Reported net sales growth | 29.0% | |
| Difference, % points | -0.6% |
Alternative profitability indicator EBITDA (EUR thousand)
EBITDA = Operating profit + depreciation + impairment
As an alternative growth indicator, the Company also presents profitability as an operating margin (EBITDA) key figure.
| Alternative profitability indicator EBITDA (EUR thousand) | 1–12/2021 | 1–12/2020 | |||
| Operating profit, EBIT | 22,103 | 17,130 | |||
| Depreciation, amortization, and impairment | 3,620 | 4,563 | |||
| EBITDA | 25,722 | 21,693 | |||
| Operating profit adjusted by non-recurring costs (EUR thousand) | 1–12/2021 | 1–12/2020 | |||
| Operating profit, EBIT | 22,103 | 17,130 | |||
| Cutica-related impairment | 628 | 1,937 | |||
| Non-recurring costs of the acquisition | 678 | 0 | |||
| Adjusted operating profit, EBIT | 23,409 | 19,067 | |||
| EBITDA adjusted by non-recurring acquisition costs | 1–12/2021 | 1–12/2020 | |
| EBITDA | 25,722 | 21,693 | |
| Non-recurring costs of the acquisition | 678 | 0 | |
| Adjusted operating profit, EBITDA | 26,401 | 21,693 |
The Oculo acquisition
On
The sales price included a conditional consideration of AUD 0.3 million (approximately
At the time of acquisition, the fair value of identifiable intangible assets of the target company was
The (preliminary) goodwill is
The gross value of trade receivables have been collected.
In the Group’s comprehensive income statement for 2021, the
In the period April 28–December 31, 2021, the acquired operations formed
The Board of Directors of
Acquisition cost calculation
The following table gives the initial fair value of the net assets acquired and the goodwill arising from the acquisition at the time of acquisition:
| Acquisition cost calculation, | ||
| Purchase consideration | ||
| Cash consideration | 11,703 | |
| Contingent consideration | 168 | |
| Total purchase consideration | 11,871 | |
| Cash flow | ||
| Cash consideration paid at closing | -11,703 | |
| Closing cash | 402 | |
| Total cash flow | -11,302 | |
| ASSETS | ||
| Non-current assets | ||
| Tangible assets | 30 | |
| Intangible assets | 2,460 | |
| Deferred tax assets | 46 | |
| Total non-current assets | 2,535 | |
| Current assets | ||
| Trade and other receivables | 412 | |
| Cash and cash equivalents | 402 | |
| Total current assets | 813 | |
| TOTAL ASSETS | 3,349 | |
| LIABILITIES | ||
| Non-current liabilities | ||
| Employee benefit obligations | 25 | |
| Total non-current liabilities | 25 | |
| Current liabilities | ||
| Trade and other payables | 908 | |
| Total current liabilities | 908 | |
| TOTAL LIABILITIES | 933 | |
| Net (liabilities) / assets | 2,416 | |
| Purchase consideration | 11,871 | |
| 9,455 | ||
Formulas
| EBITDA | = | EBITDA = Operating profit + amortization + impairment | |
| Gross margin | = | Sales revenue – variable costs | |
| Earnings per share | = | Net profit for the period (attributable to the parent company’s shareholders) Average number of shares during the period – own shares purchased | |
| Profit before taxes | = | Operating profit + financial income – financial expenses | |
| Equity ratio, % | = | 100x | Shareholders’ equity on the balance sheet + non-controlling interest Balance sheet total – advance payments received |
| Net gearing, % | = | 100x | Interest-bearing debt – cash and cash equivalents Total equity |
| Return on equity (ROE), % | = | 100x | Profit for the period Shareholders’ equity + non-controlling interest |
| Return on investment (ROI), % | = | 100x | Profit before taxes + interest and other financial expenses Balance sheet total – non-interest-bearing debt |
| Equity per share | = | Equity attributable to shareholders Number of shares at the end of the period |
Disclaimer
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 the general economic conditions.
Board of Directors
For further information, please contact:
President and CEO
jouni.toijala@revenio.fi
CFO
robin.pulkkinen@revenio.fi
DISTRIBUTION:
Principal media
www.reveniogroup.fi/en/
In 2021, the Group’s net sales totaled
© Modular Finance, source
