DGAP – News: Bio-Gate AG Strengthens Basis for Future Growth in the First Half of 2018
Bio-Gate AG (ISIN DE000BGAG981), a leading supplier of antimicrobial products and multifunctional surfaces for medical technology, recorded an increasing demand in the first half of the financial year of 2018. The areas of veterinary implants, wound treatment and care, as well as the business with derma-cosmetic products developed positively.
Bio-Gate has increased their sales by around 10% to EUR 2.03 million (previous year: EUR 1.85 million). Due to continued high investments in new developments, the most important profit figures were still slightly negative. EBITDA amounted to EUR -0.18 million (previous year: EUR -0.08 million) and the half net loss amounted of EUR -0.28 million (previous year: EUR -0.19 million). Together with the promising development projects, the personnel and structurally strengthened sales channels for veterinary products, derma-cosmetics, as well as the wound treatment and care, the company once again broadened the basis for future growth.
Improved operating cash flow and unchanged high equity ratio
The operating cash flow improved to EUR -0.39 million (previous year: EUR -0.55 million) at the end of the first six months. As of June 30th, 2018, the cash equivalents reduced to around EUR 0.95 million (31.12.2017: EUR 1.62 million) due to continued investments in development projects and the increase of personnel.
Bio-Gate’s balance sheet is remaining solid. The equity ratio was stable at 64.3% (31.12.2017: 64.6%) due to the scheduled partial repayments of loans and a reduction in trade payables.
Successful coating in human and veterinary business
In the first quarter of 2018, Bio-Gate has received a new contract from a company in Asia. As part of an individual case examination of cancer patients, the company is covering the titanium implants, which are manufactured, using the 3D printing process. Additional orders have already been announced.
Following the successful completion of an initial order for the coating of TPLO bone plates in 2017, Bio-Gate acquired an extensive follow-up order for a well-known animal implant manufacturer in China. Today, Bio-Gate is supplying coated bone plates exclusively for this market.
The cooperation with the North American animal implant manufacturer BioMedtrix remains positive. Due to the very low infection-rate with the HyProtect-coated implants, the customer is planning to launch further products using Bio-Gate’s coating.
Good demand for animal and livestock market products
The sales of skin care products for animals were at a good level in the first six months of the financial year 2018. The products, most of which were developed in cooperation agreements, are sold by sales partners in North America and Western Europe. In the farm-animal care product business, a sales partner of Bio-Gate started a Europe-wide marketing of a claw-foam for cattle. The foam is used for therapeutic care of the claw disease Dermatitis Digitalis and is part of a product family that includes a skin protection gel, a regeneration gel, and a wound care gel for small animals.
New nail cream on the market since the end of June 2018
In the product family of wound treatment and wound care, Bio-Gate has developed a new nail cream for a well-known German brand which has been sold in drugstores and pharmacies since the end of the second quarter of 2018. The cream is also suitable for diabetics who often have problems with wound healing.
Outlook 2018 confirmed
Marc Lloret-Grau, CEO of Bio-Gate AG: “In the first half year of 2018 we started a new, promising development project, strengthened our distribution channels and thus further expanded the basis for our future growth. Following the postponement of customer projects in the previous year, we recorded the first catch-up effects. Therefore, we expect a significant increase in sales for the full year of 2018. In addition, earnings on the EBITDA basis are expected to rise noticeably and consolidated net incomes are expected to be positive on a full-year basis”. This forecast is based on the assumption that there will be no delays in the current development projects and the marketing plans for the products will be met.
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