curasan concludes first quarter in line with annual guidance

- Net Group sales of EUR 1.5 million as expected below strong previous year's Q1

- Sales in domestic market Germany stabilized after completion of ramp-up with new distribution partner

- Outlook for 2018 affirmed

Kleinostheim, 24 May 2018 - curasan AG (ISIN: DE0005494538), a leading specialist for medical products in the field of orthobiologics, developed in accordance with the annual guidance in the first quarter of 2018. However, as expected, the company was unable to replicate the significant growth spurt of the high-revenue quarter of the previous year.

Accordingly, net Group sales of EUR 1.53 million (Q1 2017: EUR 1.78 million) were about 14 percent lower than in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined slightly in absolute terms at EUR -0.47 million (Q1 2017: EUR -0.31X million). Earnings before interest and taxes (EBIT) of EUR -0.74 million were characterized by higher depreciation (Q1 2017: EUR -0.45 million). "It was to be expected that we would not be able to keep up with the extremely good performance of the first quarter of 2017. After all, we started the year 2017 with one of the best quarters ever since the company was founded", emphasizes Michael Schlenk, CEO of curasan AG. "The anticipation of this development has therefore already incorporated into our annual planning and we are still well on track."

The key performance indicators for the first quarter of 2018 are as follows:

IFRS (EUR '000)	Q1 2018	Q1 2017	Deviation
Net Group sales	1,528	1,781	-14%
Gross profit	1,072	1,128	-5%
Gross margin	60%	65%	-
EBITDA	-471	-315	-50%
EBIT	-716	-447	-60%
Net result	-736	-460	-60%

 

Inventories were raised further in the first quarter of 2018 against the backdrop of increased product orders. Although this resulted in a lower gross margin compared to the previous year, it illustrates the current positive trend in key focus regions of the company. For example, after a successful ramp-up of the new distribution partnership in the German market, sales stabilized again for the first time. The Asian market also grew year-on-year, despite the shift in already contracted sales volumes into the second quarter.

Sales by region developed as follows in the first quarter of 2018:

IFRS (EUR'000)	Q1 2018	Q1 2017	Deviation
Asia	423	398	+6%
Middle East	129	256	-50%
Americas	407	462	-12%
Europe	570	659	-14%
Thereof Germany	396	394	1%
Others	0	6	-

 

The US market was down on the previous year, but shows a good development of customer relationships, especially in the dental sector. The launch of the spinal column products in the second half of the year and the decrease in contract volumes in the same period will ensure a sustained stabilization of sales in 2018. "The current situation in the Middle East is less favorable. The progressive decline of the lira is causing our sales in Turkey to literally run through our hands", explains Michael Schlenk. "Iran is also developing a kind of protectionism that makes it almost impossible for us as a foreign company to continue to market our products in that country. However, we assume that as an absolute specialist supplier we can reach an agreement with the relevant authorities in the near future. "

The main other key financial figures for the first quarter are as follows:

IFRS (iEUR '000)	Q1 2018	Q1 2017	Deviation
Equity	9,209	8,519	690
Balance sheet total	13,921	12,167	1,754
Equity ratio	66%	70%	-
Liquid Assets	1,021	214	807
Employees (FTE)	39	34	5

 

Against the background of the forecast launched at the beginning of the year and the expected development in the further course of the year, the Management Board is maintaining its unchanged outlook for the development of sales and earnings for the current financial year 2018.

The results for the first quarter as well as for the first nine months will be published in the future in a shortened form in accordance with the requirements of Deutsche Börse. The audited interim report for the first half of 2018 will be published on August 23, 2018. Further information on the curasan Group and its affiliated subsidiaries can be found at www.curasan.de.

Your contact at curasan AG:

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

About curasan AG:
curasan develops, manufactures and markets biomaterials and medical devices in the field of bone and tissue regeneration, wound healing and osteoarthritis therapy. As a pioneer and global technology leader in the growing field of regenerative medicine, curasan is specialized primarily on biomimetic bone grafting materials for dental, oral/maxillofacial, orthopedic and spinal applications, i.e. materials mimicking biological structures. Numerous patents and a broad record of scientific publications demonstrate the clinical success of the products and the highly innovative strength of curasan. Dental and orthopaedic clinicians worldwide benefit from the broad range of the premium quality and easy to use portfolio offered by the technology leader curasan.

curasan maintains its own high-tech facilities for research, development and manufacturing of biomaterials in Frankfurt/Main, Germany. In addition to its headquarters, the company has a subsidiary, curasan, Inc., in Wake Forest, near Raleigh, N.C., USA. curasan's innovative products are cleared by the US Food and Drug Administration (FDA) and many other international authorities and available in almost 50 countries worldwide. curasan AG is a public company listed in the General Standard at the Frankfurt Stock Exchange.