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Revenio Group Corporation Interim Report Q1 2022
Prenumeration
Beskrivning
| Land | Finland |
|---|---|
| Lista | Large Cap Helsinki |
| Sektor | Hälsovård |
| Industri | Medicinteknik |
Revenio Group Corporation, Stock exchange release, April 28, 2022 at 9.00 a.m. (EEST)
Revenio Group Corporation: Interim report January 1 - March 31, 2022
Strong start for the year driven by Europe and US
The figures in parentheses refer to the corresponding period in the previous year unless otherwise stated.
January – March 2022
- Net sales totaled EUR 20.2 (16.8) million, showing an increase of 20.5%
- The currency-adjusted growth of net sales in January–March was 17.1%
- Operating profit was EUR 5.6 (4.6) million, representing 27.5% of net sales and growth of 20.6%
- The EUR 0.6 million non-recurring costs of the Oculo acquisition had a negative impact on the operating profit for the comparison period. Compared to the adjusted operating profit for the comparison period, the operating profit increased by 6.0%.
- EBITDA was EUR 6.4 (5.3) million, up 21.0%
- Cash flow from operations totaled EUR -0.2 (0.6) million. Cash flow from operations was affected by the payout of annual short and long-term incentives.
- Undiluted earnings per share came to EUR 0.176 (0.141)
- The Annual General Meeting was held on April 8, 2022 after the review period. Dividend was set at EUR 0.34 and paid on April 21, 2022.
Key consolidated figures, EUR million
| 1-3/2022 | 1-3/2021 | Change-% | 1-12/2021 | |
| Net sales | 20.2 | 16.8 | 20.5 | 78.8 |
| Currency-adjusted sales | 19.3 | 16.5 | 17.1 | 79.6 |
| Gross margin | 14.7 | 12.0 | 22.1 | 55.8 |
| Gross margin - % | 72.6 | 71.7 | 1.0 | 70.8 |
| EBITDA | 6.4 | 5.3 | 21.0 | 25.7 |
| EBITDA-% | 31.7 | 31.5 | 0.1 | 32.7 |
| Adjusted EBITDA | 6.4 | 5.9 | 8.0 | 26.4 |
| Adjusted EBITDA - % | 31.7 | 35.3 | -3.6 | 33.5 |
| Operating profit, EBIT | 5.6 | 4.6 | 20.6 | 22.1 |
| Operating profit-%, EBIT | 27.5 | 27.5 | 0.0 | 28.1 |
| Adjusted Operating profit, EBIT | 5.6 | 5.2 | 6.0 | 23.4 |
| Adjusted Operating profit-%, EBIT | 27.5 | 31.3 | -3.8 | 29.7 |
| Return on investment-%, ROI | 5.6 | 5.2 | 0.4 | 22.4 |
| Return on equity-%, ROE | 5.8 | 5.6 | 0.2 | 23.4 |
| Undiluted earnings per share | 0.176 | 0.141 | 24.8 | 0.652 |
| Mar 31, 2022 | Mar 31, 2021 | Change, %-point | Dec 31, 2021 | |
| Equity ratio-% | 67.4 | 60.3 | 7.1 | 63.0 |
| Net gearing-% | 0.8 | 6.5 | -5.7 | -1.0 |
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 Jouni Toijala comments on the first quarter of 2022:
“The first quarter performance from our team was excellent. Our net sales increased by 20.5% to EUR 20.2 million, and the operating profit was EUR 5.6 million or 27.5% of net sales. It is important to note that the adjusted comparison period does not include any development costs for the software solutions. Both of our product groups saw good demand, with very strong growth in sales of retinal imaging devices. The very strong sales growth was driven by the competitive positioning of devices, and our continued success in gaining market share. In the coming years, we believe our retinal imaging devices will grow faster than our intraocular pressure measurement devices, as we have previously guided.
During the first quarter demand was strong in all our key markets. In the US and in Europe the sales volume grew, particularly in Italy, the United Kingdom, Sweden, and the Netherlands. The COVID-19 situation in Asia is creating some challenges and making it difficult to predict the future.
Our software solutions are playing an increasingly important role in eye care pathways. We launched iCare ILLUME, a software solution for the care pathway of diabetic retinopathy after the reporting period. Patient images taken with the iCare DRSplus fundus imaging system are automatically transferred to our iCare ILLUME software cloud service. An AI-based report will be generated instantly. The iCare ILLUME can be used for other eye diseases in the future. This allows us to utilize the high-quality data generated by the iCare fundus imaging devices even more extensively as support for clinical decision-making.
Our goal is to continuously develop Revenio’s strong product portfolio by bringing new product innovations and software solutions to the market. We aim to further increase our research and product development investments in 2022, as well as in 2023.
Russia’s recent invasion of Ukraine has shocked the western world, including us at Revenio. This has resulted in a fundamental change in the European security situation. We have stopped all business with Russia and Belarus. Revenio’s operations in Russia have been minor, accounting for less than two per cent of net sales.
During the first quarter of the year our production chain for imaging devices faced challenges due to COVID-19-related employee absences. As a result, orders worth more than half a million euros could not be delivered in the first quarter. Production and deliveries of imaging devices have, however, normalized in April. Although the continuing global component shortages did not impact our deliveries during the first quarter, there remains a risk that component availability and related price volatility may pose challenges later in the year. In addition, regional lockdowns caused by the COVID-19 pandemic in China may affect component availability.
Despite the geopolitical and global economic uncertainties, we start the next quarter confidently. I wish to give special thanks to our entire organization, who have shown extraordinary resilience and operational capability during an exceptional start to the year.”
FINANCIAL REVIEW
INTERIM REPORT JANUARY 1–MARCH 31, 2022, TABLES
Accounting policies applied in the preparation of the interim report
This interim report is not prepared in accordance with IAS 34. Revenio Group adheres to half-year reporting
in accordance with the Securities Markets Act and, for the first three and nine months of the year, publishes
interim reports to present key information on the Group’s financial performance. The financial figures presented in this interim report are unaudited. The financial statement bulletin and the interim report for 1–6/2022 are drawn up in accordance with IAS 34 Interim Financial Reporting.
Consolidated comprehensive income statement (EUR million)
| 1-3/2022 | 1-3/2021 | 1-12/2021 | |
| NET SALES | 20.2 | 16.8 | 78.8 |
| Other operating income | 0.0 | 0.0 | 0.9 |
| Materials and services | -5.5 | -4.8 | -23.0 |
| Employee benefits | -4.8 | -3.1 | -16.4 |
| Depreciation, amortization, and impairment | -0.8 | -0.7 | -3.6 |
| Other operating expenses | -3.5 | -3.7 | -14.5 |
| OPERATING PROFIT | 5.6 | 4.6 | 22.1 |
| Financial income and expenses (net) | 0.3 | 0.1 | 0.0 |
| PROFIT BEFORE TAXES | 5.8 | 4.7 | 22.1 |
| Income taxes | -1.2 | -1.0 | -4.8 |
| NET PROFIT | 4.7 | 3.7 | 17.3 |
| Other comprehensive income items | 0.7 | 0.2 | 0.1 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 5.3 | 3.9 | 17.5 |
| Earnings per share, undiluted, EUR | 0.176 | 0.141 | 0.652 |
| Earnings per share, diluted, EUR | 0.176 | 0.141 | 0.652 |
Consolidated balance sheet (EUR million)
| Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2021 | |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Tangible assets | 3.0 | 2.0 | 2.6 |
| Goodwill | 60.3 | 50.4 | 59.8 |
| Intangible assets | 17.8 | 16.6 | 18.2 |
| Right-of-use assets | 1.5 | 0.8 | 1.7 |
| Other receivables | 0.6 | 0.1 | 0.2 |
| Deferred tax assets | 0.0 | 0.0 | 0.0 |
| TOTAL NON-CURRENT ASSETS | 83.2 | 70.0 | 82.4 |
| CURRENT ASSETS | |||
| Inventories | 6.0 | 5.5 | 6.4 |
| Trade and other receivables | 9.7 | 7.9 | 9.2 |
| Deferred tax assets | 1.7 | 1.4 | 1.3 |
| Cash and cash equivalents | 22.6 | 21.9 | 25.2 |
| TOTAL CURRENT ASSETS | 40.0 | 36.6 | 42.2 |
| TOTAL ASSETS | 123.1 | 106.6 | 124.6 |
| SHAREHOLDERS’ EQUITY AND LIABILITIES | |||
| SHAREHOLDERS' EQUITY | |||
| Share capital | 5.3 | 5.3 | 5.3 |
| Fair value reserve | 0.3 | 0.3 | 0.3 |
| Reserve for invested unrestricted capital | 52.4 | 52.5 | 52.6 |
| Other reserves | 0.3 | 0.3 | 0.3 |
| Retained earnings/loss | 26.0 | 8.2 | 22.1 |
| Translationdifference | 0.6 | -0.1 | 0.0 |
| Own shares held by the company | -2.0 | -2.2 | -2.1 |
| TOTAL SHAREHOLDERS' EQUITY | 82.9 | 64.3 | 78.4 |
| LIABILITIES | |||
| NON-CURRENT LIABILITIES | |||
| Deferred tax liabilities | 3.5 | 3.9 | 3.6 |
| Financial liabilities | 18.2 | 22.4 | 0.8 |
| Lease liabilities | 0.8 | 0.3 | 0.9 |
| TOTAL LONG-TERM LIABILITIES | 22.6 | 26.5 | 5.3 |
| CURRENT LIABILITIES | |||
| Trade and other payables | 12.1 | 11.4 | 16.9 |
| Provisions | 0.5 | 0.3 | 0.5 |
| Financial liabilities | 4.3 | 3.6 | 22.7 |
| Lease liabilities | 0.7 | 0.5 | 0.8 |
| TOTAL CURRENT LIABILITIES | 17.6 | 15.8 | 40.9 |
| TOTAL LIABILITIES | 40.1 | 42.4 | 46.2 |
| TOTAL SHAREHOLDERS' EQUITY | |||
| AND TOTAL LIABILITIES | 123.1 | 106.6 | 124.6 |
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 1 Jan 2022 | 5.3 | 52.6 | 0.6 | 22.1 | 0.0 | -2.1 | 78.4 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 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 | -0.8 | 0.0 | 0.0 | -0.8 |
| Used option rights | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 4.7 | 0.7 | 0.0 | 5.3 |
| Balance 31 March 2022 | 5.3 | 52.4 | 0.6 | 26.0 | 0.6 | -2.0 | 82.9 |
| Reserve for | |||||||
| invested | |||||||
| Share | unrestricted | Other | Retained | Translation | Own | Total | |
| capital | equity | Reserves | Earnings | difference | shares | Equity | |
| Balance 1 Jan 2021 | 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 | -1.1 | 0.0 | 0.0 | -1.1 |
| Used option rights | 0.0 | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 3.7 | 0.2 | 0.0 | 3.9 |
| Balance 31 March 2021 | 5.3 | 52.5 | 0.6 | 8.2 | -0.1 | -2.2 | 64.3 |
Consolidated cash flow statement (EUR million)
| 1-3/2022 | 1-3/2021 | 1-12/2021 | ||
| CASH FLOW FROM OPERATIONS | ||||
| Profit for the period | 4.7 | 3.7 | 17.3 | |
| Adjustments: | ||||
| Depreciation, amortization, and impairment | 0.8 | 0.7 | 3.6 | |
| Other non-cash items | 0.7 | -0.7 | 0.6 | |
| Interest and other financial expenses | 0.1 | 0.1 | 0.4 | |
| Interest income and other financial income | -0.4 | -0.1 | -0.4 | |
| Taxes | 1.2 | 1.0 | 4.8 | |
| Other adjustments | -0.8 | 0.0 | -1.1 | |
| Change in working capital: | ||||
| Changes in sales and other receivables | -0.5 | 1.4 | 0.4 | |
| Changes in current assets | 0.4 | -0.7 | -1.5 | |
| Changes in trade and other payables | -4.2 | -1.9 | 2.2 | |
| Change in working capital, total | -4.3 | -1.2 | 1.1 | |
| Interest paid | -0.1 | -0.1 | -0.2 | |
| Interest received | 0.0 | 0.0 | 0.0 | |
| Taxes paid | -2.1 | -2.7 | -4.5 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | -0.2 | 0.6 | 21.5 | |
| CASH FLOW FROM INVESTING ACTIVITIES | ||||
| Acquisitions of subsidiaries less cash and cash equivalents at acquisition time | 0.0 | 0.0 | -11.3 | |
| Purchase of tangible assets | -0.6 | -0.2 | -1.2 | |
| Purchase of intangible assets | -0.6 | -0.1 | -1.0 | |
| Purchase of other investments | -0.4 | 0.0 | 0.0 | |
| NET CASH FLOW FROM INVESTING ACTIVITIES | -1.6 | -0.3 | -13.5 | |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Repayments of loans | -1.1 | -1.1 | -3.2 | |
| Dividends paid | 0.0 | -6.6 | -8.5 | |
| Share subscription through exercised options | 0.0 | 0.2 | 0.3 | |
| Acquisition of own shares | 0.0 | 0.0 | 0.0 | |
| Payments of lease agreement liabilities | -0.2 | -0.2 | -0.7 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | -1.3 | -7.6 | -12.1 | |
| Net change in cash and credit accounts | -3.1 | -7.2 | -4.2 | |
| Cash and cash equivalents at beginning of period | 25.2 | 28.9 | 28.9 | |
| Effect of exchange rates | 0.4 | 0.2 | 0.5 | |
| Cash and cash equivalents at end of period | 22.6 | 21.9 | 25.2 | |
Key consolidated figures, EUR million
| 1-3/2022 | 1-3/2021 | 1-12/2021 | |
| Net sales | 20.2 | 16.8 | 78.8 |
| Ebitda | 6.4 | 5.3 | 25.7 |
| Ebitda-% | 31.7 | 31.5 | 32.7 |
| Operating profit | 5.6 | 4.6 | 22.1 |
| Operating profit-% | 27.5 | 27.5 | 28.1 |
| Profit before taxes | 5.8 | 4.7 | 22.1 |
| Profit before taxes, % | 28.8 | 28.1 | 28.1 |
| Net result for the period | 4.7 | 3.7 | 17.3 |
| Net result for the period, % | 23.1 | 22.3 | 22.0 |
| Gross capital expenditure | 1.6 | 0.2 | 15.7 |
| Gross capital expenditure-% from net sales | 7.8 | 1.1 | 19.9 |
| R&D costs | 1.6 | 1.3 | 6.5 |
| R&D costs-% from net sales | 8.0 | 8.0 | 8.3 |
| Net gearing-% | 0.8 | 6.5 | -1.0 |
| Equity ratio-% | 67.4 | 60.3 | 63.0 |
| Return on investment-% (ROI) | 5.6 | 5.2 | 22.4 |
| Return on equity-% (ROE) | 5.8 | 5.6 | 23.4 |
| Undiluted earnings per share, EUR | 0.176 | 0.141 | 0.652 |
| Diluted Earnings per share, EUR | 0.176 | 0.141 | 0.652 |
| Equity per share, EUR | 3.11 | 2.41 | 2.94 |
| Average no. of employees | 184 | 144 | 167 |
| Cash flow from operating activities | -0.2 | 0.6 | 21.5 |
| Cash flow from investing activities | -1.6 | -0.3 | -13.5 |
| Net cash used in financing activities | -1.3 | -7.6 | -12.1 |
| Total cash flow | -3.1 | -7.2 | -4.2 |
Alternative growth indicators used in financial reporting
Revenio has adopted the guidelines of the European Securities and Market Authority (ESMA) on Alternative Performance Measures. In addition to the IFRS-based key figures, the company will publish certain other generally used key figures that may, as a rule, be derived from the income statement and balance sheet. The calculation of these figures is presented below. According to the company’s view, these key figures supplement the income statement and balance sheet, providing a better picture of the company’s financial performance and position.
Revenio Group’s net sales are strongly affected by fluctuations in the exchange rate between the euro and the US dollar. As an alternative growth indicator, we also present our net sales with the exchange rate effect eliminated.
| Alternative growth indicator (EUR thousand) | 1-3/2022 |
| Reported net sales | 20,193 |
| Effect of exchange rates on net sales | -860 |
| Net sales adjusted by the effect of exchange rates | 19,333 |
| Growth in net sales, adjusted by the effect of exchange rates | 17.1 % |
| Reported net sales growth | 20.5 % |
| Difference, % points | -3.4 % |
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) | 1-3/2022 | 1-3/2021 | 1-12/2021 |
| Operating profit, EBIT | 5,561 | 4,613 | 22,103 |
| Depreciation, amortization, and impairment | 831 | 670 | 3,620 |
| EBITDA | 6,392 | 5,283 | 25,722 |
| Operating profit adjusted by non-recurring costs (EUR thousand) | 1-3/2022 | 1-3/2021 | 1-12/2021 |
| Operating profit, EBIT | 5,561 | 4,613 | 22,103 |
| Cutica related impaiment | 0 | 0 | 628 |
| Non-recurring costs of the acquisition | 0 | 634 | 678 |
| Adjusted operating profit, EBIT | 5,561 | 5,247 | 23,409 |
| EBITDA adjusted by non-recurring acquisition costs (EUR thousand) | 1-3/2022 | 1-3/2021 | 1-12/2021 |
| EBITDA | 6,392 | 5,283 | 25,722 |
| Non-recurring costs of the acquisition | 0 | 634 | 678 |
| Adjusted operating profit, EBITDA | 6,392 | 5,917 | 26,401 |
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, % | = | 100 x | Shareholders’ equity on the balance sheet + non-controlling interest Balance sheet total – advance payments received |
| Net gearing, % | = | 100 x | Interest-bearing debt – cash and cash equivalents Total equity |
| Return on equity (ROE), % | = | 100 x | Profit for the period Shareholders’ equity + non-controlling interest |
| Return on investment (ROI), % | = | 100 x | 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 |
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 the general economic conditions.
Revenio Group Corporation
Board of Directors
Audiocast and conference call
President & CEO Jouni Toijala and CFO Robin Pulkkinen will present the Q1/2022 results in an audiocast and a conference call for analysts and investors at 3.00 p.m. (EEST) on the same day.
The audiocast can be followed at https://revenio.videosync.fi/results-q1-2022.
Conference call dial in numbers:
Finland: +358 9 8171 0310
Sweden: +46 8 5664 2651
United Kingdom: +44 33 3300 0804
United States: +1 63 1913 1422
PIN: 77956089#
For further information, please contact
Jouni Toijala, President & CEO, tel. +358 50 484 0085
jouni.toijala@revenio.fi
Robin Pulkkinen, CFO, tel. +358 50 505 9932
robin.pulkkinen@revenio.fi
Distribution
Nasdaq Helsinki Oy
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
Revenio Group in brief
Revenio is a leading company in the global market for ophthalmological devices and software solutions. Revenio’s ophthalmic diagnostic solutions include intraocular pressure (IOP) measurement devices (tonometers), fundus imaging devices, and perimeters as well as clinical software under the iCare brand. iCare is a trusted partner in ophthalmic diagnostics, offering physicians fast, easy-to-use, and reliable tools for the diagnosis of glaucoma, diabetic retinopathy, and macular degeneration (AMD). iCare Solutions provide digital clinical tools that drive greater efficiency and enhance quality in eye care.
In 2021, the Group’s net sales totaled EUR 78.8 million, with an operating profit of EUR 22.1 million. Revenio Group Corporation is listed on Nasdaq Helsinki with the trading code REG1V.