Aqua Bio Technology ASA continued
its steady revenue stream in the third quarter 2016 and delivered
an EBITDA margin of 58 percent in the period. Write-down of
inventory did however have an adverse effect on ABT's financial
results.
Aqua Bio Technology had a total income of NOK 12.0
million in the third quarter, compared to NOK 10.5 million in the
same period last year. EBITDA for the quarter ended at NOK 6.9
million, corresponding to an EBITDA margin of 58 percent. EBITDA in
last year's third quarter was NOK 5.0 million corresponding to an
EBITDA margin of 48 percent.
ABT did a 50 percent inventory write-down in the
third quarter, adversely affecting the financial results with NOK
12.7 million. A combination of several factors led to the
write-down of inventory: An agreement in 2014 restricted marketing
of ABT's proprietary technology towards the cosmetics industry, the
Company has decided against pursuing medical applications for its
technology in the near term and the contract with a U.S. based
customer expired at the beginning of the year and the parties'
dispute remains unresolved. Furthermore, ABT's focus going forward
is on the commercialization of third party technology.
The Company's earnings before taxes in the third
quarter ended at NOK -6.8 million including the write-off, compared
to NOK 2.9 million in the corresponding quarter last year.
For the first nine months of 2016, ABT had total
income of NOK 37.0 million, compared to NOK 28.6 million last year.
EBITDA for the first none months was NOK 13.6 million, including
substantial non-recurring costs in the first two quarters related
to the legal dispute in the United States. EBITDA for the first
nine months of 2015 was NOK 14.9 million. Pre-tax profit for the
first nine months ended at NOK -3.1 million, reflecting both the
one-off costs in the United States and the inventory write-down.
Last year's pre-tax profit was NOK 10.2 at the end of the third
quarter.
Aqua Bio Technology is currently preparing the
launch of several new ingredients for skin care products based on
third party technology. Safety studies of the new products are
completed, efficacy studies are ongoing and market launch of new
products will commence in the first quarter 2017. ABT's main
strategy is the commercialization of third party technology, and
additional technology partners are expected to be signed up in the
fourth quarter.
ABT expects to see revenues from third party
technology throughout 2017. Revenues from the Company's proprietary
technology will remain steady in the fourth quarter, before being
reduced in 2017 compared to previous years.
For further information, please
call Arvid Lindberg, CEO, telephone +47 9824 5410
Aqua Bio
Technology (ABT) has launched several cosmetic ingredients used in
skin care products globally. Skin care is the fastest growing
segment in the cosmetics industry, where ABT's ingredients have
established a foothold. In addition to ingredients from its own
technology, ABT also commercializes novel technologies/ingredients
for partners, for use in skin care products. Aqua Bio Technology is
listed on the Axess market of the Oslo Stock Exchange.
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.