AAP Implantate AG (DE:AAQG)’s preliminary FY17 results show an encouraging 20% y-o-y growth in trauma revenues, with the strongest performance coming from the North American distribution business. Management has guided to continued revenue growth and reducing EBITDA losses in FY18. Delivery on key partnerships and the commercialisation of the silver-coating technology are the main stepping points to eventual profitability. The near-term goal for aap is to start the human clinical trial for the silver-coating technology with the aim of reaching CE and FDA approval.
20% growth in trauma sales encouraging
aap Implantate’s preliminary unaudited sales figures for FY17 show full-year revenues of €10.9m (+4%), including prior disposals and within management guidance (€10-13m). Trauma now accounts for 98% of FY17 revenues, up 20% y-o-y and up 11% from Q317 to Q417. This growth is encouraging and validates aap’s strategic transformation into a pure-play trauma business. Key revenue drivers included the North America distribution (+70%) and the International (+26%) businesses. Full audited results are due to be published on 29 March 2018.
Out-pacing global trauma market growth in FY18
Management guidance is for FY18 revenues of €13-15m, up 20-40% y-o-y and reducing the EBITDA loss to between €5m and €3.4m. Management points this out to be a higher growth rate than the global trauma market. Key to this will be continued significant growth in North America, both via new partnerships with global orthopaedic companies and distribution deals. Investors are still awaiting details on the human clinical study for the silver-coating technology which should pave the way to eventual planning approval. The study is expected to start in FY18 and will inevitably result in higher costs during the period. Q118 revenues are guided to between €1.8m and €3.0m and for an EBITDA loss of between €1.9m and €1.4m.
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