Sorin S.p.A. (Sorin), an Italy-based medical devices company, has reported net revenues of EUR168.6 million for the first quarter of 2009, up 11%, compared with the net revenues of EUR151.7 million in the year-ago quarter. It has also reported net profit of EUR2.8 million for the first quarter of 2009, compared with the net loss of EUR0.6 million in the year-ago quarter.
Results for the First Quarter of 2009 exceed guidance:
Gross profit up 13.0% at EUR94.0 million (55.8% of revenues, compared with 54.9% in Q1 08);
EBITDA up 30.3% at EUR22.6 million (13.4% of revenues, compared with 11.4% in Q1 08);
EBIT at EUR12.6 million (7.5% of revenues) compared with EUR7.7 million (5.0% of revenues) in Q1 08;
Net Result at EUR3.3 million (EUR2.8 million including the impact of discontinued operations) compared with a loss of EUR0.6 million in Q1 08;
Net Debt as of March 31, 2009 at EUR238.6 million. This is the lowest level since the listing of Sorin Group and compares with EUR318.2 million on March 31, 2008 (EUR253.1 million on December 31, 2008).
Full year guidance confirmed. For the second quarter of 2009 Sorin Group expects revenue to grow 2-4% and EBITDA margin to reach 13.5-14.0%. Moreover, the Group expects to end the first half with a net profit of at least EUR5 million. Net debt as of June 30, 2009 is expected to remain steady compared to March 31, 2009 levels.
“We are satisfied with the continuous progress we are making in the implementation of our strategy, with a disciplined allocation of resources and a selective commercial policy”, said chief executive officer André-Michel Ballester. “In addition, we are pursuing our efforts in Research and Development in order to create long-term growth opportunities and we are generating in the first quarter of 2009 positive financial results”.
Gross Profit in Q1 09 grew 13.0% to EUR94.0 million, or 55.8% of revenues (54.9% in the first quarter of 2008), thanks to the manufacturing cost reduction program, to a better revenue mix as well as to the favorable impact of exchange rates.
Selling, General and Administrative (SG&A) expenses fell to 39.8% of revenues (EUR67.0 million) compared with 41.4% in the first quarter of 2008 (EUR62.8 million); the Company continued to invest in order to strengthen its commercial and marketing structures globally.
Research and Development (R&D) expenses grew in Q1 09 both in absolute terms, to EUR14.4 million, and as a percentage of revenues, to 8.5%, confirming the Group’s constant commitment to innovation.
EBITDA grew 30.3% to EUR22.6 million (13.4% of revenues) compared with EUR17.3 million (11.4% of revenues) in the first quarter of 2008. This significant profit improvement comes from leveraged sales growth, controlled structural costs and marked gross margin expansion.
EBIT grew 65.1% to EUR12.6 million (7.5% of revenues) compared with EUR7.7 million (5.0% of revenues) in the first quarter of 2008.