- First Half-Year 2010 RESULTS - Excellent 1st Half-Year 2010 Performance by Stallergenes - Growth in France and Internationally +13% - Very Strong net Profit Growth +51% - Free Cash Flow Growth +90%
The Board of Directors' approved the 2010 half-year financial statements at its meeting of 25 August 2010, chaired by Albert SAPORTA:
Sales growth and financial position
Sales grew by 13% in the first half-year. This significant increase reflected the continuing advancement of sublingual treatments, in particular buoyant Oralair(R) sales in Germany.
Under the combined effect of this growth and the temporary reduction in R&D expenditure, a significant increase in earnings was achieved in the 1st half-year 2010. Overall, the profit before R&D rose moderately in relative value and represented 38.6% of sales, compared to 38.2% in the 1st half-year 2009. R&D expenditure fell very significantly by 22% in the first half-year and went from 21.8% of sales in 2009 to 15.0% this year. This decline was due to a timing difference between the end of the clinical studies in progress (and particularly the Oralair(R) study in the US) and the start of new studies. Operating profit rose by 51% to EUR 29.5 million. The net diluted earnings per share grew by 49% to EUR 1.50.
EBITDA grew by 48% to EUR 35.6 million. Investments temporarily fell by 26% over the half-year to EUR 6.9 million. As a result, and also due to stable working capital requirements, free cash flow recorded a significant 90% increase to EUR 27.6 million.
At 30 June, net cash resources grew from EUR 1.3 million in 2009 to EUR 25.0 million in 2010.
The half-year financial report can be downloaded from the website: http://www.stallergenes.com
At its meeting of 25 August 2010, the Board of Directors authorised the implementation of the share buyback programme approved by the Annual General Meeting of 28 May 2010, which will not exceed EUR 10 million and will more particularly be used to cover stock options and performance-based share payments.
Significant recent transactions and events
The positive clinical results achieved over the first half-year, in particular for Oralair(R) and Actair(R) lead us to consider our international expansion with confidence. These results are particularly encouraging in our drive to enter into strategic partnerships.
Oralair(R), which is already marketed in Germany, will be launched in the autumn in the Netherlands, the Czech Republic, Slovakia and Austria. The market access process is ongoing in Southern European countries. In France more specifically, talks have been initiated with the "Commission de Transparence", which should issue a public opinion by the end of the year.
R&D expenditure will recover in the second half-year but the 2010 total will not exceed the 2009 level in absolute value. Against this background, and considering projected sales growth in excess of 10%, the Group expects a significant increase in its full-year operating margin.
The recovery in investment in the second half should only have a marginal effect on the generation of free cash flow, which will be significantly greater in the full year 2010 than in 2009.