Revenio Group Corporation Stock Exchange Release, February 12, 2015 at 9.00 am
Revenio Group Corporation's Financial Statement Bulletin January 1-December
31, 2014
Revenio Group Corporation has adopted the publication procedure enabled by the
Financial Supervisory Authority's Regulations and guidelines 7/2013 (Disclosure
obligation on issuers) and is publishing its Financial Statement for January-
December 2014 as an appendix to this stock exchange release which is a summary
of the Revenio Group Corporation's Financial Statement for January-December
2014. The document can be read in full in the PDF appendix to this release. The
Financial Statement 2014 is also available on Revenio's website:
http://www.revenio.fi.
Health Tech reports a strong Q4
October-December 2014 in brief:
* The Group's continuing operations: net sales totaled EUR 5.0 million (4.1),
representing growth of 20.4%, while the operating profit was EUR 1.3 million
(1.3), a growth of 3.4%.
* The net sales of the Revenio Health Tech business segment rose by 20.4% to
EUR 5.0 million (4.1). Due to major investments in R&D, marketing measures
related to Oscare and the launch of the Icare HOME tonometer, the segment's
operating profit decreased by 9.9% to EUR 1.6 (1.7) million.
* December was the all-time highest sales month for Icare.
* Probe sales continued to increase, with year-on-year growth of 40.3%.
* Revenio established a subsidiary, Revenio Research Oy, to manage the R&D
projects of Revenio Group. The goal is to build growth paths from these new
openings alongside the current products of Revenio Group.
* As of December 1, 2014, the operations of Revenio Technology and Services
segment were transferred to available-for-sale discontinued operations.
* Undiluted earnings per share, continuing operations EUR 0.15 (0.14) and
diluted earnings per share, continuing operations EUR 0.15 (0.13).
January-December 2014 in brief:
* Very strong development was seen in the Revenio Health Tech segment in spite
of a challenging early year and the Group's all-time highest R&D
investments. The segment's net sales totaled EUR 16.0 million (EUR 13.5
million), representing growth of 18.7%. The operating profit was EUR 5.4
million (5.4), a 0.1% decline.
* The entire capital stock of Midas Touch Oy, which represented the contact
center business of Revenio's Technology and Services segment was sold in
September. In line with its strategy, Revenio is focusing on health
technology.
Key Figures,
MEUR:
Q4/2014 Q4/2013 Change-% 1-12/2014 1-12/2013 Change-
%
Net sales,
parent company 5.0 4.1 20.4 16.0 13.5 18.7
Segment profit
margin, parent
company 1.3 1.3 3.4 4.4 4.3 3.3
Net sales,
Health Tech 5.0 4.1 20.4 16.0 13.5 18.7
Segment profit
margin, Health
Tech 1.6 1.7 -9.9 5.4 5.4 -0.1
Net profit
from
discontinued
operations -3.4 0.3 -1280.7 -4.4 1.4 -418.3
Undiluted
earnings per
share
continuing
operations 0.15 0.14 12.4 0.47 0.38 25.5
Diluted
earnings per
share
continuing
operations 0.15 0.13 13.2 0.47 0.37 26.3
Cash flow from
operating
activities 2.6 2.4 8.3 3.6 5.6 -35.7
30 Sept 30 Sept Change, 31 Dec 2014 31 Dec 2013 Change,
2014 2013 %-point %-point
Equity raito,
% 77.2 73.4 3.8 62.4 66.1 -3.7
Gearing, % -5.7 -10.4 4.7 -22.4 -16.8 -5.6
2015 profit guidelines
Icare Finland's net sales and operating profit in 2015 are expected to increase
from the previous year. The Group's consolidated operating profit and cash flow
will be affected by the investments in the new health tech businesses. These
investments are not significant during 2015.
Olli-Pekka Salovaara, President and CEO, comments fourth quarter results:
"Overall, 2014 was a year of major change for us. The transfer into a health
tech group in line with our strategy required some very tough decisions and
withdrawals. On the other hand, our focus on health tech generated results, and
we continued to strengthen our position as the global market leader in
intraocular pressure measurement, in particular through our determined efforts
in the United States and Asia. Icare is currently on sale in 75 countries - an
excellent foundation for growth and new product launches. During the review
period, we launched the new Icare HOME tonometer, which is designed for self-
monitoring of intraocular pressure as part of the treatment process. Today, it
is sold in over 30 countries in Europe as well as in Canada and Australia.
During the fourth quarter, we made the decision to include also other clinical
trial partners, alongside the Johns Hopkins Hospital, in order to speed up the
sales permit application process with FDA in the United States.
October-December 2014 was an excellent quarter for Icare. In December, the
company once again reached an all-time high in sales. This was attributable to
very active sales efforts, activation of our distribution network and
exceptionally strong sales in the United States. Icare's business is
characterized by seasonal variation, in which sales peak in the latter half of
the year. In the United States, following the uncertainties of the first half-
year, the last quarter indicated that customers had plenty of remaining budget,
boosting sales to an exceptionally high level in December. Since U.S. sales
account for over 40% of Icare's net sales, its importance for full-year sales is
significant.
One of Revenio's potential growth drivers is the Oscare Sono - a device
manufactured by Oscare Medical, a strategic holding of Revenio, for the
assessment, screening and monitoring of osteoporosis. In 2014, we already
delivered the first devices from serial production, although their commercial
significance during the period under review was still minor. Oscare's marketing
expenses in 2014 totaled close to EUR 200,000.
In December, we decided to divest Boomeranger Boats Oy and Done Software
Solutions Oy, which represent our Technology and Services segment, and to
transfer said companies to available-for-sale discontinued operations. In
September, we divested our Contact Center business. These business operations
will be sold due to our strategic focus on health tech and the related
divestment of non-core operations. In operational terms, the companies will
continue to operate as usual and the arrangement does not have an effect on the
current or future customer relationships of these businesses.
Although Revenio has been perceived mainly as Icare, our vision is more
ambitious. In 2014, we made major investments in developing our existing
products as well as identifying new development ideas. In my opinion, we did
extremely well in both of these areas. The common denominators of our new
development projects include screening, follow-up and the global need to make
cost savings in health care through preventive measures. We believe that these
development ideas have the potential to create interesting growth paths
alongside our existing products. Screening and follow-up hold a significant role
in preventive work. Our vision is to develop Revenio Group into a global leader
in health tech related screening technology.
During the last quarter of 2014, we established a subsidiary, Revenio Research
Oy, to manage our new development projects. As part of Revenio Group, Revenio
Research will be responsible for the development of our health tech products and
other R&D projects in this field. Our aim is to identify and commercialize new,
screening-related opportunities. For example, in early 2015, we announced new
project launches for the screening of skin cancer and asthmatic diseases.
Overall, the outlook for Revenio is very bright. I am extremely pleased with our
strategic choices and the success of Icare. Our new projects will bore into
major public health problems, placing us at the very heart of matters that are
fundamental to us: improving people's lives and life expectancy. Our strategic
intent is to a take a focal role as a global leader in screening."
Outlook
The need for cost-efficient health care and disease prevention is increasing
throughout the world. Ageing population, unequalisation and increasingly scarce
national resources will continue to pose challenges in the years to come. Easy-
to-use innovations enabling cost-efficient implementation worldwide will
markedly increase the cost-efficiency of health care. One of the key tools to
address these needs is effective screening technology.
Revenio's vision is to assume a significant role in screening and to eventually
achieve a leading position in this field. The focus of Revenio's screening
technology lies on early detection of glaucoma, osteoporosis, skin cancer and
asthma, and measurement of these during the treatment process. According to the
current view of Revenio's management, market leadership in intraocular pressure
screening for glaucoma identification and IOP measurement as part of the
treatment process creates a strong basis for expanding both Revenio's existing
product portfolio and launching new screening products.
In the near future, Revenio will be focusing on strengthening the global market
position of existing Icare products, expanding sales efforts for the Icare HOME
tonometer, launching new, next-generation products and productizing new
technologies. We will also be concentrating on launching extensive sales efforts
for the Oscare Sono osteoporosis measurement device.
General clause
This release contains certain forward-looking statements that are based on
management's current assumptions. Due to their nature, these statements involve
risks and uncertainty, and are sensitive to changes in the economy or industry.
Revenio Group Corporation
Board of Directors
For further information, please contact:
President & CEO Olli-Pekka Salovaara, tel. +358 40 567 5520
olli-pekka.salovaara@revenio.fi
http://www.revenio.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
The Revenio Group in brief
Revenio is a Finnish health tech group whose core business lies in screening.
The Revenio Health Tech segment comprises the business operations of Icare
Finland Oy and Oscare Medical Oy, which specializes in osteoporosis screening
and assessment. In addition, Revenio has identified new growth opportunities
relating to health tech in which common denominators are screening, follow-up
and the global need to make cost savings in health care through preventive
measures. Revenio seeks vigorous growth in health technology, both organically
and through acquisitions and mergers.
In 2014, the Revenio Group's net sales totaled MEUR 16.0, with its operating
margin for continuing operations standing at 27,5%. The Revenio Group
Corporation is listed on NASDAQ OMX Helsinki.
[HUG#1893697]
Revenio Group Corporation: Revenio Group Corporation Financial Statement Bulletin January 1-December 31, 2014 - Health Tech reports a strong Q4
| Source: Revenio Group Oyj
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