28 July 2016
Trading Update for the Year Ended 30 June 2016
- Global sales of A$72.9m, an increase of 16% on the prior comparable period
- Estimated profit before tax up from A$2.6 million to A$4.2 million, a 61% increase
Ellex Medical Lasers Limited (ASX:ELX), a world leader in medical technologies for the diagnosis and treatment of eye disease, today announced that it expects to report a profit before tax of approximately A$4.2 million for the year ended 30 June 2016. The result will be a material increase in the profit before tax of A$2.6 million reported for the year ended 30 June 2015.
Group revenue for the year ended 30 June 2016 is expected to be approximately A$72.9 million, a A$10.1 million (16%) increase compared to the prior corresponding period. The net increase in
revenue has three components, namely:
- Positive impact of organic growth in sales of Ellex-branded product in USA, Asia, Europe and Japan of 15% (A$9.5m)
- Positive impact of lower Australian dollar against US$, Euro and YEN 11%(A$7.2m)
- Discontinuation of contract manufacturing and lower margin third party product sales that has reduced revenue by 10% (A$6.5m)
Estimated Profit before tax
The increase of 61% in the estimated profit before tax has been driven by the following:
- Improved margins on sales due to the increased Ellex-branded product in total sales
- The return to profitability of the business in Japan
- Sales growth in China
- Sales growth of our iTrack product in the USA
Encouragingly this increase in profit before tax is after allowing for:
- Investment in iTrack growth initiatives
- Investment in additional regulatory resources to maintain a flow of new product availability
In addition, there was increased amortisation charge compared with the prior corresponding period mainly due to higher amortisation on the US$ denominated deferred consideration arising from the iTrack acquisition. The fall in the A$ has increased the total amount of the deferred consideration and associated amortisation.
“We are pleased with the continuation of improved sales growth and margins. The acceptance by the market of our new products, the turnaround of the business in Japan, along with sales growth in Asia, have been highlights. The continued acceleration of growth in our iTrack sales is also exciting.” commented Mr Tom Spurling, CEO.
These results are a preliminary estimate and prior to finalisation of the annual audit by the Company’s Auditors. Ellex expects to report its full-year results for the year ended 30 June 2016 during the week beginning 22 August 2016 along with a detailed presentation for investors.
Ellex designs, develops, manufactures and sells innovative product that help eye surgeons around the world to effectively and efficiently treat eye disease. Ellex is a world leader in this field. Headquartered in Adelaide, Australia, Ellex has ophthalmic lasers and devices that treat glaucoma, retinal disease primarily caused by diabetes, secondary cataract and vitreous opacities, as well as age-related macular degeneration. Manufacturing is carried out in Adelaide, Australia and Fremont, California. Sales and service directly to eye surgeons is conducted via subsidiary offices in Minneapolis, Lyon, Berlin and Tokyo. A network of more than 50 distribution partners around the world services other markets.
For additional information about Ellex and its products, please visit www.ellex.com
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