STOCKHOLM, Sweden, April 26, 2002 (PRIMEZONE) -- Gambro:
* Group revenues increased 12%
* Operating earnings, EBITDA, up 6% with improvements in all
business areas
* Strong operating cash flow
MSEK January-March Currency
2002 2001 Change adjusted
Revenues 6,909 6,180 +12% +7%
EBITDA1) 1,106 1,046 +6% +1%
EBITDA margin 16.0% 16.9%
Operating cash flow 144 -430
Earnings per share (EPS) 0.26 0.32 -19%
SEK
Cash earnings 2) per 2.35 2.14 +10%
share (CEPS) SEK
1) Earnings before depreciation and amortization
2) Net income plus depreciation and amortization
First quarter highlights:
- Good organic revenue growth, balanced between all three
business areas.
- Revenue per treatment in the U.S. improved to USD 246, mainly
due to improved treatment mix and continued ramp up in the
billing of laboratory services.
- Favorable sales development of synthetic dialyzers, monitors,
dry concentrates and PD fluids.
- Strong demand for Gambro BCT's machines, Trima and Spectra.
- EBITDA margin somewhat lower for the Group.
- Gambro Healthcare's margin was negatively affected by economic
development in Argentina and a general downturn in the non-U.S.
business. Country improvement programs are in place.
- Gambro Renal Products' margin was stable and in line with last
year. Gambro BCT's margin dropped due to changes in product and
geographical sales mix.
"Our vision, strategies and programs are in place and are yielding expected results. This has brought stability to the Group and provides the basis for Gambro's striving for operational excellence. We are on the right track for long-term growth and world class performance," said Soren Mellstig, Gambro president and CEO.
Key data, present structure (excluding nonrecurring items)
Jan-March April Jan-Dec
2001-
MSEK 2002 2001 March 2001
2002
Revenues 6,909 6,180 27,449 26,720
Operating earnings before 1,106 1,046 4,328 4,268
depr. (EBITDA)
EBITDA margin 16.0% 16.9% 15.8% 16.0%
Operating earnings (EBIT) 386 420 1,436 1,470
EBIT margin 5.6% 6.8% 5.2% 5.5%
Earnings before tax (EBT) 248 263 689 704
Earnings per share (EPS) SEK 0.26 0.32 0.32 0.39
(1)
Earnings per share (EPS) SEK 0.26 0.32 -1.29 -1.22
(1)
including nonrecurring items
Cash earnings per share 2.35 2.14 8.71 8.50
(CEPS) SEK (2)
Operating cash flow (3) 144 -430 563 -11
Operating cash flow per 0.42 -1.25 1.64 -0.03
share (3)
Net debt 9,825 8,443 9,825 9,434
(1) After full tax
(2) Net income plus depreciation and amortization divided by number
of shares
(3) Cash flow before acquisitions/divestitures and taxes
FIRST QUARTER 2002
Gambro's first quarter 2002 revenues reached MSEK 6,909 (6,180) corresponding to a growth of 12% (7%*). Overall Group revenues developed positively on main markets in Europe and in the U.S. as well as on prioritized markets in the rest of the world.
Growth was well balanced between the company's three business areas. For Gambro Healthcare, revenues grew by 15% (10%*), including strong organic growth and strong improvement in revenue per treatment in the U.S. For Gambro Renal Products, revenues increased by 11% (8%*). Internal sales grew by 58%*, 25%* on a comparable base, excluding effects of a change in reporting. Internal sales were driven by strong sales of monitors to Gambro Healthcare in the U.S.
Operating margin, EBITDA, for the Group was 16.0 % (16.9%). Gambro Healthcare experienced a somewhat reduced margin at 14.4% (14.6%), with increased margin in the US business and a significantly lower margin in the non-U.S. business, mainly due to difficult business conditions in South America. The product business areas, Gambro Renal Products and Gambro BCT margin continued strong at 19.7% but was below 2001 first quarter's excellent margin at 20.7%. The group margin was negatively affected by legal and administrative expenses of MSEK 31 related to the subpoena received in June 2001 by Gambro Healthcare US.
The group experienced strong operating cash flow, mainly due to reduced trade receivables. Net debt on March 31 amounted to MSEK 9,825, an increase of MSEK 391 since the beginning of the year. Despite an average net debt that was some MSEK 2,400 higher than the first quarter 2001, financial net was improved to MSEK -138 (-157), mainly as a result of lower U.S. dollar interest rates.
(*) Currency adjusted
At the Annual General Meeting in March the proposed authority for the Board to decide on the purchase and sale of the Company's own shares was approved. In short this includes authority for the Board to decide on the acquisition of own shares subject to certain conditions as well as authority to dispose of own shares subject to certain conditions.
Gambro announced in the beginning of April that it is financing a professorship in nephrology, held by Professor Borje Haraldsson, at the Sahlgrenska Academy at Gothenburg University in Sweden for a period of five years. As a globally leading company in the care and treatment of renal patients Gambro has for many years been cooperating with prominent university hospitals all over the world. The goal is to always be in the forefront of research in the renal care area.
OUTLOOK
The company reconfirms its overall objectives for the year 2002 - to leverage the improved platform for growth and profitability. Focus will also be to define the business model as an integrated service provider and to explore new growth opportunities. The financial objectives for the group in 2002 are to deliver a revenue growth of 8-10%, improve the operating margin trend and further improve operating cash flow. The financial results on a group level will be affected by costs related to the subpoena in Gambro Healthcare U.S.
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