Eckert & Ziegler Q3/2018: Increase in Revenue in all Business Segments
Berlin-based Eckert & Ziegler Strahlen- und Medizintechnik AG (ISIN DE0005659700), a specialist in isotope-related applications in medicine, science and industry, increased the earnings per share to €2.50 in the third quarter of 2018 and thus reached the earnings originally projected for the entire year within the first nine months.The Group generated roughly €4.5 million or €0.88 per share in the third quarter. In comparison to the previous year, the Group’s earnings thus increased by 45% or €0.78 per share. All segments contributed to the great result. The Isotope Products segment generated high sales in the energy sector; in the Radiopharma segment, the brisk demand for pharmaceutical radioisotopes resulted in new record sales. The revenues in the Radiation Therapy segment increased in the HDR business (high dose rate) compared to the previous year. Since the cyclotron division has been sold in May 2017 and income and sales from discontinued operations must be reported separately in accordance with IFRS 5, the figures about the comparable period relate only to the continuing operations.
In the third quarter of 2018, the Eckert & Ziegler Group generated new record-high sales of €123.8 million. The sales increased by €23.4 million, or 23%, over the previous year. The Isotope Products segment - which increased its sales by €20.0 million or 31% to €83.7 million due to the consolidation of the Gamma-Service Group acquired at the end of May 2017 and the strong demand in the energy sector - experienced the largest growth spurt among the continuing operations. Sales in the Radiation Therapy segment rose as well by €2.8 million or 15% to €21.1 million, driven by good sales of HDR products. The Radiopharma segment increased sales by 14% to €23.5 million. The growth was primarily driven by the pharmaceutical radioisotopes.
The strong euro had adverse effects on the sales growth in all segments due to the adverse effects on sales made in foreign currencies. Compared with the previous year, the Group thus lost €4.7 million, so the increase after adjustment for currency effects would have totaled €28.1 million or 28%. Organic, real sales growth - in other words, currency effect-adjusted sales to exclude the acquisitions and disposals made in 2017 - amounted to €17.5 million or 17%.
Since the 2018 nine months result contains only a few extraordinary effects and the good business development included almost all of the main product groups, the Executive Board now assumes that the consolidated earnings from continuing operations will increase by at least 28% for the entire year of 2018 compared to the previous year. The previous target of €2.50 thus increases to around €2.80 per share. Based on the assumption that the euro exchange rate does not exceed $1.15, the Executive Board expects a turnover of approx. €165 million.
The complete financial statements can be viewed here:
source: Eckert & Ziegler AG