aap Implantate AG: Outlook for financial year 2016: aap aims for more than 20% trauma sales growth

aap Implantate AG / Outlook for financial year 2016: aap aims for more than 20% trauma sales growth . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

• Sales forecast for FY/2016 between EUR 30 million and EUR 34 million
• Sales organisation expanded and stronger focus on established markets
• Dynamic sales development expected from second half of the year
• Cost reduction planned in all divisions except sales

aap Implantate AG (XETRA: AAQ.DE) aims to return to the growth track in financial year 2016. In this context in particular the trauma business shall serve as the growth driver. The Management Board anticipates trauma sales growth of 20% to 25% this year. The company's growth strategy is focused especially on established markets as the U.S., the DACH (Germany, Austria, Switzerland) region and other European countries. At the same time sales development in the BRICS and SMIT countries shall be stabilised.

In response to the business development in recent quarters aap significantly expanded its sales organisation. The sales team was strengthened with several executives with extensive experience and proven track records in the industry based on many years of service with renowned international medical technology companies.

 

Thanks to the substantial extension of the LOQTEQ® portfolio in financial year 2015 aap can now provide with an indication coverage of more than 90% for the treatment of big bone fractures. As a result the product family's attractiveness further increases, both for established markets and for hospital and purchasing groups as well as tendering procedures.

 

Based on the measures initiated and against the background of current global market developments the Management Board expects sales of EUR 30 million to EUR 34 million and an EBITDA of EUR 0.0 million to EUR 1.0 million for financial year 2016.

 

For the first quarter of 2016 the Management Board anticipates sales of EUR 4.5 million to EUR 6.0 million and an EBITDA of EUR -2.0 million to EUR -1.0 million. The background of this forecast is on the one hand a quarterly fluctuation in the biomaterials business primarily due to the ordering behaviour of the major customers for bone cements and mixing systems. On the other hand the Management Board expects that the sales measures initiated in the trauma business will become effective from the second half of 2016 and should then be reflected in a perceptibly more dynamic sales development. In this regard, it should be mentioned that the development of sales and earnings figures should be evaluated as an overall economic review on an annual basis rather than on a quarterly basis.

Management Agenda 2016

aap's Management Board has specified its targets for the current financial year as Management Agenda in four strategic and operational action areas.

Management Agenda Targets for 2016

Accelerating value-based innovations

Completion of LOQTEQ® portfolio with a focus on polyaxial fixation technology as well as foot and ankle

CE mark for the antibacterial silver coating technology

Maintenance of a freshness index of at least 20%

Enhancing market access

Substantial sales contribution from the US business

Establishment of DACH region and further European countries as core markets

Stabilisation of sales development in BRICS and SMIT states

Optimising operational efficiency

Cost reduction in all divisions except sales

Increase of sales efficiency

Optimisation of working capital management

Focus on trauma

Conclude divestment of aap Biomaterials GmbH (bone cements and mixing systems as well as biomaterials)

Sale of the remaining interest of 33% in aap Joints GmbH
(Contract manufacturing for joint implants)

 

 

A key element of the corporate strategy is the development of innovative and IP protected technologies and products, which build the basis for continuous value creation. aap's patented antibacterial silver coating technology addresses on the one hand a problem in surgery which hasn't yet been resolved adequately (infection risk when using metal implants) and has on the other hand a high value creation potential due to its wide range of applications. The superior target the Management Board continues to pursue within its strategy is to transform aap into a focused trauma company.    

In the course of its future financial communication aap will report on sales developments in the trauma business (LOQTEQ®, standard trauma and trauma complementary biomaterials) and the biomaterials business (Bone cements and corresponding accessories as well as biomaterials).

aap plans to publish its consolidated annual financial report 2015 on 30 March 2016.

 

About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma and biomaterials products for orthopedics. The trauma portfolio includes besides the innovative anatomical plating system LOQTEQ® a wide range of cannulated screws as well as standard plates and screws. In the biomaterials business the company is specialized on bone cements and mixing systems. In German-speaking countries aap Implantate AG directly sells its trauma products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 60 countries at the international level. In the biomaterials business sales are handled via OEM and private label cooperations with several selected international orthopedic and trauma companies. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.

Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.

For inquiries please contact: aap Implantate AG, Fabian Franke, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: [phone], fax: [phone], e-mail: [e-mail]

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Source: aap Implantate AG via Globenewswire

HUG#1987019

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aap Implantate AG
Lorenzweg 5 Berlin Germany

WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;