curasan accelerates sales growth in the first six months due to rising foreign demand

  • Gross revenues in the first half of the year increase by 9.6 percent to 3.35 million euros
  • Gross revenues in the second quarter increase by 16.7 percent
  • Share of export revenues rises sharply to 79 percent

Kleinostheim, August 18th,  2016  –  The pace of growth at curasan AG  (ISIN  DE0005494538),  a  leading specialist for medical  products in  the  field of  orthobiologics, increased significantly abroad during the first half of fiscal year 2016. Adjusted gross revenues increased by 9.6 percent to 3.35 million euros compared to the same period in 2015. Sales grew by 16.7 percent in the second quarter alone.

This was due primarily to the increased demand in the defined growth regions in foreign markets. Thus, sales further increased dynamically by 53.0 percent to 0.28 million euros (first six months of 2015: 0.18 million euros) in the Near East and in Asia by 11.8 percent to 0.76 million euros (first six months of 2015: 0.68 million euros). During the first half of the year, the share of export sales overall rose to 79 percent (first six months of 2015: 71 percent).

“Quarter after quarter, it is becoming clearer that our new sales concept is successful in the market. Thus, in the next four quarters we expect significant contributions to sales from our previously announced sales offensives in the United States and China,” explained Michael Schlenk, CEO of curasan AG. “Of course, the increased expenditures for sales staff, conventions and marketing campaigns will have a significant impact on the result right at the beginning of the upswing.”

The result before interest, taxes, depreciation and amortization (EBITDA) at
-0.94 million euros was significantly below the comparable figure influenced by the out-of-court settlement payment to Stryker (first six months of 2015:  +3.85 million euros).  After adjusting for this non-recurring effect, extended terms of payment from deliveries to foreign clients towards the end of the reporting period adversely affected the result. “In our growth regions, it is perfectly normal to grant one’s clients longer terms of payment than those which are customary in the German market. This was included in our planning,” explained Schlenk.“At the same time, we continuously monitor the credit-worthiness of our customers and protect ourselves as far as possible against losses from outstanding receivables. However, in the short term this factor has a negative effect on our free cash flow.

Against the background of extended terms of payment, trade receivables increased by 0.66 million euros to 1.92 million euros (31 December 2015: 1.26 million euros). Liquid funds were thus reduced – and slightly disproportionately due to increased sales costs – to 0.78 million euros (31 December 2015: 1.59 million euros). Due to the capital increase undertaken, the equity ratio rose to 72.5 percent (31 December 2015: 70.3%).

The company expects positive development over the further course of the year, particularly from the Chinese market in the short term. After numerous exploratory discussions with potential sales partners in recent weeks, CEO Michael Schlenk expects intesified sales activities as early as the fourth quarter: “Our discussions were extremely successful and we are currently receiving very positive feedback on our products. We will soon be able to accelerate our sales activities in China with a partner who is well positioned in terms of sales and finances.” With the current and expected developments in mind, the company is on course with regard to the operational development as forecasted for 2016.

CEO Michael Schlenk will personally explain the results in detail during an open teleconference for analysts, qualified investors and journalists at 3:00 p.m. today. Interested parties can register by sending an e-mail to the Investor Relations and Corporate Communications departments (IR@curasan.com).

Curasan has made the full annual report for 2016 available as a download on its website under the following link:
www.curasan.de/investoren/publikationen/finanzberichte

Your contacts at curasan AG:
Ingo Middelmenne
Head of Investor Relations
+49 6027 40 900-45
+49 174 90 911 90
ingo.middelmenne@curasan.com

Andrea Weidner
Head of Corporate Communications
+49 6027 40 900-51
andrea.weidner@curasan.com

About curasan AG:
curasan AG develops, manufactures and markets biomaterials and other medical products in the field of bone and tissue regeneration. A pioneer in its industry, curasan is specialized primarily on synthetic bone grafting ­materials for dental and orthopaedic applications. Numerous patents and a comprehensive list of scientific documentation prove the clinical success of the products and the highly innovative strength of curasan. Surgically active dentists, implantologists and oral, maxillary and dentofacial surgeons, as well as orthopaedics, traumatologists and spinal column surgeons worldwide benefit from the broad range of the premium quality and user-oriented portfolio offered by the technology leader. curasan maintains its own high-tech facilities for research, development and manufacturing in Frankfurt/Main, Germany, which are approved by the Food and Drug Administration (FDA) and other international authorities. In addition to its headquarters, the company has a subsidiary, curasan Inc., in the Research Triangle Park, near Raleigh, N.C., USA.The shares of curasan AG are listed in the General Standard at the Frankfurt Stock Exchange.