Figures in brackets refer to the same period in the previous year, unless otherwise stated.
An excellent quarter driven by strong sales and exceptionally low expenditure
July-
· Net sales totaled
· The currency-adjusted growth of net sales in July-September was 17.0%, or 6.4% percentage points stronger than reported
· Operating profit was
· Demand for iCare intraocular pressure measurement devices and probes remained strong, and sales of imaging devices picked up slightly from the beginning of the year. Sales success was affected also by some larger-than-usual orders in
· An impairment of
· Operating profit for the reference period was weighed down both by non-recurring acquisition costs and the impact of the acquisition cost of CenterVue's inventories, amounting to
· Adjusted for non-recurring acquisition costs and the impact of the acquisition cost of inventories, the operating profit for the reference period was
· Fixed costs during the review period have been over
· EBITDA was
· EBITDA for the reference period was weighed down both by non-recurring acquisition costs and the impact of the acquisition cost of CenterVue's inventories, amounting to
· Gross margin was
· Gross margin in the reference period was weighed down by the impact of the acquisition cost of Centervue's inventories. Adjusted gross margin in the reference period was
· Cash flow from operations totaled
· After the end of the review period, on
· Undiluted earnings per share came to
January-
·
Net sales totaled
· The currency-adjusted growth of net sales in January-September was 22.1%, or 2.3 percentage points stronger than reported
· Operating profit was
· Demand for iCare intraocular pressure measurement devices and probes has been strong in
· Operating profit for the reference period was weighed down by non-recurring acquisition costs amounting to
· Adjusted for non-recurring acquisition costs, the operating profit for the reference period was
· EBITDA was
· EBITDA for the reference period was weighed down by non-recurring acquisition costs amounting to
· Gross margin was
· Gross margin in the reference period was weighed down by the impact of the acquisition cost of Centervue's inventories. Adjusted sales margin in the reference period was
· The Annual General Meeting confirmed a dividend of
· Undiluted earnings per share came to
Key consolidated figures, EUR million
7-9/2020 7-9/2019 Change-% 1-9/2020 1-9/2019 Change-%
Net sales 15.8 14.3 10.5 41.4 34.5 19.8
Gross margin 11.4 10.0 13.8 29.7 23.9 24.0
Gross margin - 72.2 70.2 2.1 71.8 69.3 2.4
%
EBITDA 6.2 4.6 35.8 13.4 8.8 51.5
EBITDA-% 39.4 32.1 7.3 32.4 25.6 6.8
Operating 3.6 3.9 -7.5 9.5 7.4 28.8
profit, EBIT
Operating 23.0 27.4 -4.5 22.9 21.3 1.6
profit-%, EBIT
Return on 3.9 7.4 -3.5 10.2 13.8 -3.6
investment-%,
ROI
Return on 4.6 7.8 -3.2 11.7 14.6 -2.9
equity-%, ROE
Undiluted 0.111 0.117 0.283 0.222
earnings per
share
30/9/2020 30/9/ 2019 Change, %-point
Equity ratio-% 59.5 56.0 3.5
Gearing-% 6.7 14.1 -7.4
Financial guidance for the second half of 2020
Financial guidance issued by the company after the end of the review period on
·
The Covid-19 pandemic continues to cause general uncertainty on the market and weakens visibility for the remainder of the year 2020. Under these circumstances
The company's original earnings guidance of
President & CEO
"I would like to extend my warmest thanks to all the
Thanks to the dismantling of restriction measures the gradual recovering of the markets started in May and continuing in July-September. Fixed costs have remained exceptionally low throughout 2020 due to travel restrictions and the cancellation of sales events and fairs because of the Covid-19 pandemic. Opportunities for physical customer meetings have been extremely limited, and important industry conferences were transferred online or cancelled altogether. When assessing the reference figures, it should also be noted that the CenterVue figures were not consolidated until
All of
Demand for iCare intraocular pressure measurement devices, in particular, continued to be strong in the third quarter. Our sales success was also influenced by some unusually large orders in
Sales of iCare retinal imaging devices picked up slightly during the review period. Demand for the DRSplus retinal imaging device has been particularly brisk. The Covid-19 restrictions continued to affect sales of imaging devices, however, as they are capital goods and require in-person meetings for both sales and installation. In many countries, clinics and hospitals continue to restrict visits, which makes product presentations and installations difficult. Clinics' patient flows also remain well below the pre-Covid-19 pandemic level. We expect the situation to continue along the same lines in the near future. In our view, we are well positioned with our iCare retinal imaging devices vis-à-vis our competitors when the restrictions caused by the pandemic are eased.
We are currently updating our strategy, with a large number of employees representing various operations in the Group actively involved. We will publish our strategy priorities and future steps after the turn of the year.
Development of the Ventica® and Cutica® systems is progressing according to plan. Our current view is that Cutica's go-to-market will take longer than we originally estimated. The delay in Cutica's schedule has been caused in particular by research work on the use of artificial intelligence in the automatic processing of image material. This is why we have recorded a partial write-down, which, however, does not have an impact on the short-term plans with the project. The project was not fully written down, and development work and product validation will continue. The impairment was based on the weakened outlook for future return expectations and project-related uncertainties.
The Covid-19 pandemic is unfortunately still going strong, and visibility into the future is hazy. We work every day to ensure that, even in these exceptional circumstances, we can deliver the world's leading ophthalmic products to our customers, bring new innovations to market, and ensure our future growth path. In addition to our employees, thanks are due to our customers, distributors, and all our partners who believe in us and make us feel that we are doing valuable work every day."
General statement
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 general economic conditions.
Board of Directors
For further information, please contact:
President & CEO
jouni.toijala@revenio.fi
robin.pulkkinen@revenio.fi
www.revenio.fi
DISTRIBUTION:
Principal media
www.revenio.fi
The
The
In 2019, the Group's net sales totalled EUR 49.5 million, with its operating profit standing at 25.5%.
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