aap Implantate AG / aap: Q2/2015 sales and EBITDA above guidance; further continuous sales growth in Trauma business and with LOQTEQ® . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

aap Implantate AG (XETRA: AAQ.DE) was able to exceed its financial targets in the second quarter of 2015 for both sales and earnings and further on realized continuous sales growth in the trauma business and especially with the LOQTEQ® product family. The company's sales in the reporting period totalled EUR 6.5 million (Q2/2014: EUR 8.1 million) and were thus above the EUR 5.0 million to EUR 6.1 million guidance issued in May. In the first half of 2015, aap Implantate AG reported sales of EUR 13.6 million (H1/2014: EUR 14.2 million).  
 
EBITDA in the second quarter of 2015 amounted to EUR -0.8 million (Q2/2014: EUR 1.5 million), thereby also exceeding the forecast of EUR -1.5 million to EUR -1.0 million. In the first six months of the current financial year the company's EBITDA was at EUR -0.6 million (H1/2014: EUR 1.6 million).
 

 In EUR million		 Q2/2015 Q2/2014 Change
Sales 6.5 8.1 -20%
Trauma 3.2 2.9 8%
thereof LOQTEQ® 2.0 1.8 15%
Biomaterials 3.2 4.9 -34%
Projects 0.0 0.1 -82%
Other 0.1 0.2 -50%


 In EUR million		 Q2/2015 Q2/2014 Change
EBITDA -0.8 1.5 < -100%
EBIT -1.5 1.0 < -100%


 In EUR million		 H1/2015 H1/2014 Change
Sales 13.6 14.2 -4%
Trauma 5.6 5.1 11%
thereof LOQTEQ® 3.7 2.9 27%
Biomaterials 7.6 8.4 -9%
Projects 0.2 0.2 10%
Other 0.2 0.5 -72%


 In EUR million		 H1/2015 H1/2014 Change
EBITDA -0.6 1.6 < -100%
EBIT -1.9 0.5 < -100%

Sales development in the second quarter of financial year 2015 was significantly influenced by the sales decline in the biomaterials business (Q2/2015: EUR 3.2 million vs. Q2/2014: EUR 4.9 million). This decline was merely a quarterly fluctuation primarily due to the ordering behaviour of the major customers in the area of bone cement and mixing systems. In contrast the company again reported continuous growth rates in the trauma business and with the LOQTEQ® portfolio on both a quarterly and a half-yearly basis.
 

 In EUR million		 Q2/2015 Q2/2014 Change
Sales (normalised) 6.5 8.0 -19%
EBITDA (normalised) -0.5 0.3 < -100%
 

 In EUR million		 H1/2015 H1/2014 Change
Sales (normalised) 13.4 14.0 -5%
EBITDA (normalised) -0.2 0.4 < -100%
 
On a comparable basis (without the one-time effects of share disposals, one-time costs incurred in connection with strategic measures, project earnings and related costs) normalised sales in the second quarter of 2015 totalled EUR 6.5 million (Q2/2014: EUR 8.0 million) and in the first half of the current financial year amounted to EUR 13.4 million (H1/2014: EUR 14.0 million). Adjusted for project and one-time effects EBITDA in the second quarter of 2015 totalled EUR -0.5 million (Q2/2014: EUR 0.3 million) and amounted to EUR -0.2 million in the first half of the current financial year (H1/2014: EUR 0.4 million). When comparing the normalised EBITDA figures it has to be stated that the sales decrease in the highly profitable biomaterials business led especially to the decline in normalised EBITDA in the second quarter.
 
The following highlights show the progress that aap Implantate AG achieved in the second quarter of 2015 with regard to the implementation of the 2015 Management Agenda:
  • Financial targets achieved: EUR 6.5 million in sales and EUR -0.8 million in EBITDA were above the guidance provided in May
  • Further continuous sales growth in the trauma business (+8% to EUR 3.2 million) and with the LOQTEQ® portfolio (+15% to EUR 2.0 million)
  • US market development: Eight contracts signed with non-stocking distributors for the distribution of LOQTEQ® products
  • Trauma: Scheduled expansion of the LOQTEQ® portfolio with a focus on, inter alia, the introduction of the radius system with a variable locking technology, the development of new foot and ankle joint plate systems and plates with polyaxial locking technology
  • Silver coating technology: Approval-relevant animal studies and other work further running on schedule
  • Biomaterials: Further targeted expansion of aap Biomaterials GmbH's business with a situation appraisal and deduction of specific action options in H2/2015
 
Outlook for 2015
With a view to developing the US market the first eight contracts have been signed with non-stocking distributors. The next steps include the provision of necessary inventories and the execution of various product training courses and sessions for the distributors' sales employees. In order to reach an optimal geographic coverage as well as to extend the presence in this strategically important market, aap Implantate AG will further push the acquisition of distributors in the coming months and intensify distribution activities. For this purpose the US team will be strengthened again in a targeted manner in product management and distribution. Initial more significant sales are to be expected from the fourth quarter of 2015.
 
In the trauma business the LOQTEQ® portfolio is to be further expanded in the second half. In this connection the company plans, inter alia, the market launch of a periprosthetic LOQTEQ® plate for use in the area of the femur near the knee and the extension of the polyaxial locking technology to further LOQTEQ® plate systems.
 
In the silver coating technology area all approval-relevant work continues to go ahead on schedule. The company still aims to submit its CE approval application for the first silver coated products by the end of 2015.
 
For the third quarter of 2015, aap Implantate AG is expecting sales to range between EUR 7.5 million and EUR 9.0 million and an EBITDA of EUR 0.1 million to EUR 0.6 million. In this regard, it should be noted that the development of the most important key figures should be evaluated as an overall economic review on an annual basis rather than on a quarterly basis.

About aap Implantate AG

aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma and biomaterials products for orthopedics. The trauma portfolio includes besides the innovative anatomical plating system LOQTEQ® a wide range of cannulated screws as well as standard plates and screws. In the biomaterials business the company is specialized on bone cements and mixing systems. In German-speaking countries aap Implantate AG directly sells its trauma products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 60 countries at the international level. In the biomaterials business sales are handled via OEM and private label cooperations with several selected international orthopedic and trauma companies. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.


Forward-looking statement

This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.


For inquiries please contact: aap Implantate AG, Fabian Franke, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany

Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, e-mail: f.franke@aap.de

 


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: aap Implantate AG via Globenewswire
HUG#1945818

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aap Implantate AG
Lorenzweg 5 Berlin Germany

WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
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Freiverkehr in Bayerische Börse München,
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