Ypsomed investing in Switzerland

Burgdorf, (PresseBox) - For the Burgdorf-based diabetes specialist Ypsomed, the first six months of the business year have been in line with the expectations already announced. For the last time, a fall in sales to the former key customer Sanofi was recorded. It was possible to largely offset this decline through rigorous cost management, resulting in an operating profit slightly below the figure for the previous year. Over the past few years, Ypsomed has been broadening its foundations and is now looking to reap the benefits of its diversified sales base and return to the path of growth. The authorized capital increase earmarked to finance this growth strategy was approved by the shareholders in June 2012. Investment opportunities are currently being weighed up, with no decisions having been taken as yet.

In the first half of 2012, Ypsomed generated consolidated sales of CHF 119.7 million, 2.5% less than in the previous year (CHF 122.8 million). The fall in sales was primarily due to the production of OptiSetĀ® und OptiPenĀ® Pro Pens for Sanofi being discontinued. However, activities with newly acquired pen system customers and the growing diabetes business performed according to plan during this period. Particularly pleasing was the 15.9% increase in sales in the Diabetes Direct business from CHF 36.8 million to CHF 42.7 million, fueled mainly by the sharp growth in sales of over 75% enjoyed by mylife(TM) OmniPodĀ® insulin pumps. The measures initiated last year to boost efficiency and cut costs had a positive impact in the first half of the 2012/13 business year. Operating expenses for marketing and sales were below the figure for the previous year. Overall, an operating profit (EBIT) of CHF 2.4 million was recorded in the first half of the 2012/13 business year, slightly less than in the previous year (CHF 3.0 million). Overall, this resulted in a consolidated net profit of CHF 2.0 million. Net profit was down on the previous year, as financial income for the first half of the 2011/12 business year was particularly high at CHF 7.7 million, a figure influenced by the one-off profit of CHF 5.1 million from the sale of non-current financial assets and a CHF 1.0 million increase in the dividend payout on financial investments. Despite the slight dip in sales, by the end of the business year Ypsomed is expecting its operating profit to match the figure for the previous year.

Cash flow from investing activities was up on the same period last year as Ypsomed invested a total of CHF 8.1 million in fixed assets in the first half of the 2012/13 business year (same period in the previous year: CHF 3.5 million). Ypsomed is committed to Switzerland as a production center, with the lion's share of investments having been made at its Swiss manufacturing sites, most notably in the expansion of pen needle production. The company also invested CHF 10.2 million in research and development, capitalizing CHF 4.0 million of this as development costs for product development of its own insulin pump and other platform products.

The shareholder loan from Willy Michel was reduced by CHF 4.5 million to CHF 20.0 million in the first half of the 2012/13 business year. At the same time, its term was extended from the end of March 2014 to the end of March 2017, with annual repayments being cut from CHF 10.0 million to CHF 5.0 million. Major shareholder Willy Michel was reaffirming his commitment to Ypsomed as he firmly believes in the Group's strategy and future prospects. Ypsomed's balance sheet remains extremely robust thanks to equity of CHF 217.7 million after paying a dividend of CHF 2.5 million from capital reserves as well as an equity ratio of 63.3%.

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