Sorin (MIL:SRN):
“The final 2009 financial statements confirm the full achievement of our
targets; this solid financial basis will be the foundation for future
growth. The 2010-2014 Plan confirms the strategic guidelines previously
communicated, based on profitability and cash flow expansion and
prepares for accelerated growth in the future”
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Consolidated full year revenues at € 689.0 million (+5.2%
vs. 2008), EBITDA at € 99.4 million (14.4% of revenues, up from 12.4%
in 2008) and EBIT at € 51.5 million (7.5% of revenues, compared with
7.0% in 2008). Before special items, EBIT at € 58.6 million
(8.5% of revenues, up from 6.2% in 2008).
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Net profit at € 23.2 million, or 3.4% of revenues, versus a net
loss of € 37.1 million in 2008. Net profit from continuing operations
at € 26.6 million (€ 0.5 million in 2008).
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Net debt of € 181.6 million as of December 31, 2009, down from €
253.1 million at the end of 2008 and € 198.6 million as of September
30, 2009.
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For 2010, the Company expects year-over-year revenue growth of 2-4%,
EBITDA margin improvement to 15-16% and a net profit of € 33-37
million. Net debt is expected to be further reduced to € 150 million
by the end of 2010.
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Strategic Plan for the period 2010-2014 was approved by the Board
of Directors. Revenue expected to grow globally at an average of
3-5%; in 2014 Gross Profit at 61-63% of revenue and EBITDA margin in
excess of 20% of revenue. Highlights of the Plan will be presented to
the financial community in a meeting on Monday March, 22nd,
in Milan.
* * *
The Board of Directors of Sorin S.p.A., meeting today under the
chairmanship of Rosario Bifulco, approved the 2009 financial statements
and the Strategic Plan for the 2010-2014 period.
“The final 2009 financial statements confirm the full achievement of our
targets; this solid financial basis will be the foundation for future
growth. The 2010-2014 Plan confirms the strategic guidelines previously
communicated, based on profitability and cash flow expansion and
prepares for accelerated growth in the future” said André-Michel
Ballester, Chief Executive Officer, Sorin Group.
CONSOLIDATED RESULTS FOR 2009
In 2009, Sorin Group reported revenues of € 689.0 million,
up 5.2% (+7.1% at actual exchange rates) compared
with the previous year.
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The Cardiopulmonary Business Unit reported revenues of € 316.7
million, up 2.4% (+4.6% at actual exchange rates) versus 2008,
driven mainly by the Heart-lung machines segment. During 2009 the
company has significantly strengthened its organizational structure,
completing the integration of the EVH (endoscopic vessel harvesting)
business line. The business unit has continued to its strategy of
improved profitability, through disciplined financial and inventory
management.
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The Cardiac Rhythm Management Business Unit increased revenues
to € 255.6 million in 2009, up 9.1% compared with 2008
(10.7% at actual exchange rates), driven in particular by the High
Voltage segment, where the business unit has increased its market
shares in all major geographies. In the Low Voltage segment the
business unit has strengthened its presence in several European
markets, becoming the market leader in key markets such as France.
Innovation and manufacturing efficiency were key elements of the
business unit performance during the year.
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The Heart Valves Business Unit posted revenues of € 112.8
million in 2009. The year-over-year increase of 5.6% (7.5% at actual exchange rates) versus 2008 is driven mainly by the
strong expansion of tissue valve sales in the main European markets
and in the United States, where the business unit has significantly
gained market share. The market decline of the mechanical valves
segment has continued, in line with expectations. During 2009,
important milestones have been achieved with the Perceval STM project,
dedicated to the development of a bovine pericardium self-expandable
surgical valve. The enrollment of 180 patients in a clinical trial
conducted at eight centers in Europe has been successfully completed,
with the objective of obtaining CE mark approval in 2011.
Gross Profit grew to € 384.3 million, or 55.8% of
revenues, compared with € 347.1 million, 54.0% of revenues, in
2008. This significant improvement was due to the reduction in
manufacturing costs and reflects the positive impact of improved
geographic and product mix.
Selling, general and administrative expenses (SG&A) were €
266.7 million, 38.7% of revenues, from € 254.6 million, 39.6% of
revenues, in 2008.
Research and Development expenses grew to € 59.0 million, or 8.6%
of revenues, compared with € 52.4 million, or 8.1% of revenues, in 2008.
EBITDA increased to € 99.4 million, 14.4% of revenues,
compared with € 80.0 million, 12.4% of revenues, in 2008.
EBIT increased by 14.2% at € 51.5 million (7.5% of revenues),
compared with € 45.1 million, 7.0% of revenues, in 2008. As
detailed in the tables below, EBIT was impacted in 2009 by provision for
€ 7.2 million reflecting the tentative-settlement that the Company has
reached with the US Department of Justice, concerning a previously
disclosed investigation. This amount has not been included in the 2009
preliminary data, since at that time the amount could not been estimated
reliably, as communicated on March 12th, 2010.
Excluding special items, EBIT was up 46.2% at € 58.6 million,
8.5% of revenues, compared with € 40.1 million in 2008, 6.2% of revenues.
Net profit rose to € 23.2 million (3.4% of revenues),
compared to a net loss of € 37.1 million in 2008. This amount is € 4.8
million less than the previously communicated preliminary data,
primarily reflecting the above mentioned provision, after taxes. Profit
from continuing operations was € 26.6 million in 2009 vs. € 0.5 million
in 2008. This improvement reflected a significant reduction in financial
expenses, at € 10.3 million, down from € 26.8 million a year earlier.
This decrease is due to a positive mark-to-market difference of our
hedging portfolio (€ 10.8 million) and to a reduction in the cost of
servicing the debt (€ 8.5 million), partially offset by other net
financial expenses.
Net debt was € 181.6 million as of December 31, 2009, down
from € 253.1 million at the end of 2008 (€ 198.6 million as of September
30, 2009). The net cash flow of € 71.5 million generated in 2009
reflects the positive impact of improvement in profitability and the
reduction in working capital. Special items had a net positive impact of
€ 3.1 million in 2009, as detailed in the tables below.
For 2010, the Company expects year-over-year revenue
growth of 2-4%, an EBITDA margin improvement to
15-16% of revenues, net profit at € 33-37 million. Net debt is
expected to be further reduced to € 150 million by the end of 2010.
* * *
The Board of Directors also approved the stand-alone statutory accounts
of Sorin S.p.A., which show a net profit of € 2.1 million (net
loss of € 56.7 million in 2008). The Board of Directors has resolved to
attribute the 2009 net profits to the legal reserve for € 0.1 and to
carry forward the remaining part of € 2.0 million.
* * *