Japan
Mar 02, 2010
Dako achieves all-time high revenue and operating profit in 2009
Today, Dako announced its annual results 2009 and the Danish based company presents the highest ever revenues and earnings in its history.
Growth in revenue and EBITDA
Revenue amounted to DKK 1,764 million in 2009, an increase of 8 percent compared to 2008. The organic growth was 6 percent. All regions contributed positively to the organic growth.
EBITDA grew to the highest level ever. The 17 percent growth to DKK 499 million in 2009 from DKK 427m in 2008 is primarily due to the growth in revenue combined with higher gross margins due to higher production efficiency and operating expense savings.
Net loss for the year amounted to DKK 120 million (2008: net loss DKK 305 million), including amortization of intangibles of DKK 160 million (2008: DKK 161 million) and net financial costs of DKK 304 million in 2009 (2008: DKK 429 million).
CEO Lars Holmkvist had the following comment to Dako’s performance in 2009:
“2009 was a good year for Dako. We achieved the highest revenue and earnings ever in our history with stable growth despite the economic slowdown. We saw an increase in gross margins due to higher production efficiency. Also, we succeeded in securing important contracts with Genentech, OSI Pharmaceuticals and AstraZeneca on development of companion diagnostic tests for their cancer treatment to help physicians determine the most appropriate cancer treatment for patients. This is truly great news and supports our mission to deliver the highest standards and accuracy in cancer diagnosis.”
Companion diagnostics is a focus area for Dako and the business grew significantly in 2009. Even higher growth was achieved in another important business area, reagents for special staining, which grew by 15 percent.
Dako enters new growth markets
In 2009 Dako opened a new office in Brazil and in January this year China was the first new office to be inaugurated.
“China has hundreds of new hospitals on the drawing board, most of them with pathology laboratories demanding products like Dako’s.The BRIC markets (Brazil, Russia, India and China) offer a huge potential to us,” adds Lars Holmkvist.
The general slowdown in the economy also affected Dako’s markets. Third and fourth quarter 2009 showed an increased focus on health care spending with hospitals and laboratories in some parts of the world cutting back on new investments and postponing purchases of reagents. The situation, however, seems to have normalized now.
Further growth in 2010
Although showing all-time high sales and EBITDA in 2009 Dako holds bigger potential and expects higher growth rate and result in 2010.
“In 2009 Dako has focused on cost savings and efficiency-improving measures why additional growth in sales will have an increased impact on our future earnings. I strongly believe we are well positioned for future growth,” says Lars Holmkvist.
| Financial highlights | 2009 | 2008 | 2009 % of revenue | 2008% of revenue |
|---|---|---|---|---|
DKK million |
||||
Revenue |
1.763,5 | 1.639,9 | ||
Gross profit |
1.201,4 | 1.103,9 | 68,1% |
67,3% |
Research and development expenses |
184,4 |
188,4 |
10,5% |
11,5% |
Operating profit/(loss) before other income and expenses |
232,2 |
178,3 |
13,2% |
10,9% |
Net financials |
-303,7 |
428,9 |
-17,2% |
-26,6% |
Net profit/(loss) for the year |
-119,8 |
-304,8 |
-6,8% |
-18,6% |
EBITDA before other income and expenses |
498,6 |
427,0 |
28,3% |
26,0% |
Download the full annual report 2009.
Media contact:
Lene Christoffersen
Corporate Communications
+4540748782
Forward-looking statements
Statements in this press release that are forward-looking are subject to risks, inaccurate assumptions and uncertainties. The consequence is that the actual results do not meet expectations. The future results could be influenced by factors such as interest rate and exchange rate fluctuations, development projects failure, production challenges, price decreases influenced by government and reimbursement rules, introduction of competitive products, Dako’s capability to successfully market new and existing products, product liability exposure and other law suit together with unexpected growth in expenses.
About Dako
Dako, based in Denmark, is a global leader in tissue-based cancer diagnostics. Hospital and research laboratories worldwide use Dako’s know-how, reagents, instruments and software to make precise diagnoses and determine the most effective treatment for patients suffering from cancer. Employing more than 1000 persons and operating in more than 70 countries, Dako covers essentially all of the global anatomic pathology markets. Dako is owned by a private equity fund, EQT. www.dako.com