IBA SA: IBA Reports Half Year 2023 Results

Read the full half-year 2023 results press release here

GROUP NET SALES UP 5.9%

BACKLOG CONVERSION TO SIGNIFICANTLY ACCELERATE IN H2

CONTINUED INVESTMENT TO PREPARE FOR GROWTH; GUIDANCE REITERATED

Louvain-la-Neuve, Belgium, 31 August 2023 - IBA (Ion Beam Applications S.A), the world leader in particle accelerator technology, today announces its consolidated results for the first half of 2023.

(EUR 000)	H1 2023	H1 2022	Variance	Variance %
Total Net Sales	169 418	160 032	9 386	5.9%
Proton Therapy	95 082	101 338	-6 256	-6.2%
Other Accelerators	41 354	31 798	9 556	30.1%
Dosimetry	32 982	26 896	6 086	22.6%
REBITDA	-13 859	14 065	-27 924	-198.5%
% of Sales	-8.2%	8.8%
REBIT	-20 296	4 564	-24 860	-544.7%
% of Sales	-12.0%	2.9%
Profit Before Tax	-22 656	297	-22 953	-7728.3%
% of Sales	-13.4%	0.2%
NET RESULT	-27 263	-1 717	-25 546	1487.8%
% of Sales	-16.1%	-1.1%

Financial summary

• Total H1 Group revenues of EUR 169.4 million, up 5.9% on the same period last year, driven by good Other Accelerators backlog conversion, strong Dosimetry sales, and Service revenue growth, but dampened by slow uptick in Proton Therapy
• Group REBIT of EUR -20.3 million affected in H1 by:
  • Proton Therapy revenue recognition, largely linked to phasing of projects and some unrelated, customer-specific installation delays. As a result, strong improvement is expected in H2, with revenue recognition on five projects planned in H2 and three project shipments or installations shifted to H2
  • Investment made at Group level in digital development, supply chain and research and development to prepare for growth in the next quarters
• Strong focus on inventory build-up during the period, with an increase of EUR 33 million (up 32.4%), in preparation for backlog execution in H2 and beyond, in particular following the 10-room Proton Therapy deal signed in 2022 in Spain
• Gross margin was 26.6%, down from 39.1% last year, impacted by inflation, low overhead absorption and product mix; last year's numbers also included the one-off positive impact of indemnities related to Rutherford in the UK
• Equipment order intake was EUR 88 million and Dosimetry order intake rose 20.2% to EUR 36.9 million
• No change in guidance, with growth to 2026 REBIT target weighted to after 2024
• Dosimetry had a strong half year, with REBIT up 200% on last year to EUR 3.2 million, with the business unit increasing its customer base and global reach
• Continued strong performance of Services with PT revenues increasing 10% versus H1 2022 and overall Service revenues increasing 16.8%
• Equipment and Services backlog remains high at EUR 1.3 billion, with equipment and upgrade backlog reaching EUR 707 million; operational measures in place to support backlog conversion
• Total Group net loss of EUR 27.3 million (H1 2022: EUR 1.7 million loss), reflective of revenue recognition weighted to the second half
• Strong balance sheet retained with EUR 103.3 million gross cash and EUR 61.7 million net cash position. EUR 41 million undrawn short-term credit lines still available at period end

Business summary

• Eight Other Accelerators systems sold in H1 (H1 2022: 21 systems), with particularly strong Services performance
• Two Proteus^®ONE¹ systems and one Proteus^®PLUS¹ system sold in H1 (H1 2022: three Proteus^®ONE systems)
• 35 PT projects under construction or installation at the end of the period and strong acceleration in backlog conversion expected in H2
• Strategic collaboration signed between PanTera and TerraPower Isotopes to accelerate access to actinium-225 for the pharmaceutical industry
• Launch of AKURACY^®, an integrated solution for Cardiac PET Imaging
• FLASH proton therapy research partnership initiated with Particle Therapy Interuniversity Center Leuven (PARTICLE)

Post-period highlights

• Capital increase of PanTera, a joint-venture with SCK CEN, for a total amount of EUR 20.4 million
• Unused credit facilities of EUR 37 million refinanced in August and increased to EUR 40 million, bringing total credit lines to EUR 44 million
• Three additional Other Accelerators machines sold, bringing the year-to-date total to 11 machines

Olivier Legrain, Chief Executive Officer of IBA, commented: "The first half of the year has been dedicated to preparing the business for the anticipated acceleration in Proton Therapy backlog conversion. Our focus has been on scaling up our supply chain, hiring personnel globally to install and maintain machines in the upcoming quarters and continuing to invest in R&D to expand our competitive advantage in our four markets. We are seeing excellent growth in Dosimetry and Other Accelerators. Proton Therapy equipment, which is inherently less predictable due to the size of contracts and scale of the projects, has been impacted over the period by scheduled project phasing and some customer delays resulting in revenues to now be recognized in H2. Concurrently we have seen strong Services performance from the Proton Therapy business on its growing installed base.

"We have excellent visibility over our inventory and how we expect this to develop as we continue to convert the backlog of existing contracts and sign new ones. Based on this, we are expecting a significant ramp up in the business in the second half. We are continuing to invest in future product development via the Sales & Marketing and R&D teams and digitalization initiatives and we remain confident in the guidance laid out at our Full Year 2022 results."

***ENDS***

Olivier Legrain, Chief Executive Officer, and Soumya Chandramouli, Chief Financial Officer, will host a conference call and webcast to present the Interim results, followed by a Q&A session.

The conference call, conducted in English, will be held on Thursday, 31 August 2023 at 3pm CET / 2pm BST / 9am EDT / 6am PDT as a Teams webinar and can be accessed online on this link.

If you would like to join by phone only, please dial (Phone conference ID 307 168 530#):

Belgium: [phone]
UK: [phone]
NL: [phone]
LU: [phone]
US: [phone]
FR: [phone]

The presentation will be available on IBA's investor relations website and on:
https://www.iba-worldwide.com/iba-half-year-2023-results-web-conference shortly before the call.

To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled webcast.

For participants who do not have the Teams application installed, please follow the process described in this link to access the conference.

Financial calendar

Business Update Q3 2022 16 November 2023

About IBA

IBA (Ion Beam Applications S.A.) is the world leader in particle accelerator technology. The company is the leading supplier of equipment and services in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA is also a leading player in the fields of industrial sterilization, radiopharmaceuticals and dosimetry. The company, based in Louvain-la-Neuve, Belgium, employs approximately 2,000 people worldwide. IBA is a certified B Corporation (B Corp) meeting the highest standards of verified social and environmental performance.

IBA is listed on the pan-European stock exchange EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB). More information can be found at: www.iba-worldwide.com

For further information, please contact:
IBA
Soumya Chandramouli
Chief Financial Officer
[phone]
[e-mail]

Olivier Lechien
Corporate Communication Director
[phone]
[e-mail]

For media and investor enquiries:
Consilium Strategic Communications
Amber Fennell, Matthew Neal, Lucy Featherstone
[phone]
[e-mail]

¹ Proteus®ONE and Proteus®PLUS are brand names of Proteus 235