ERAGNY-SUR-OISE, France--(BUSINESS WIRE)--Regulatory News:
SAFE ORTHOPAEDICS (Paris:SAFOR) (FR0012452746 – SAFOR), a company specialized in the design and marketing of single-use implants and instruments improving the minimally invasive treatment of spinal fracture conditions, is today reporting its full-year 2017 results and its Q1 2018 revenues.
Safe Orthopaedics’ 2017 annual financial report will be available in the Investors > Documentation > Documents and Publications section of the Company’s website (www.SafeOrtho.com) from April 27,2018.
“Safe Orthopaedics reached a turning point in 2017. As well as significantly strengthening our sales team and giving it a strategic focus on vertebral fractures, we achieved a clear improvement in our financial performance, including our best-ever year-on-year growth rate of 37%1”, commented Pierre Dumouchel, Chief Executive Officer and Co-founder of Safe Orthopaedics. “2018 has got off to a healthy start, with surgical kit sales breaking above the 10,000 mark and revenues advancing by 22% in the first quarter. Given our consistent performances in France and the recent contribution to our international growth from Germany–two countries with a direct sales force—we are actively working to acquire a direct sales force in the United Kingdom and to develop new drivers of technological growth.”
Reduction in costs and improved operating performance in 2017
|in thousands of euros - IFRS||FY 2017||FY 2016|
|Revenues – France||1,582||1,182|
|Revenues – Rest of the World||1,528||1,083|
Total adjusted1 revenues
|Revenues from discontinued activities (United States)||0||100|
|Purchases used and change in inventories||(1,729)||(1,579)|
|Other operating expenses||(685)||(456)|
|Operating income/(loss) before non-recurring items||(5,401)||(6,104)|
|Other operating income/(expense)||(33)||(183)|
In 2017, revenues totaled €3,110 thousand, representing growth of 37% on an adjusted1 basis.
In France, revenues rose 34% to €1,582 thousand. Through sales and marketing initiatives targeting vertebral fractures, Safe Orthopaedics doubled its market share in this segment to 8%2. In the fourth quarter, the sales team was expanded, bringing the total number of sales representatives to seven at December 31, 2017, up from four at year-end 2016.
Growth in the Rest of the World reached 41%, with revenues totaling €1,528 thousand in FY 2017. Brisk growth generated by longstanding distributors and rapid expansion in Latin America provided the driving force for this increase. A second export manager was hired in the fourth quarter of 2017.
Safe Orthopaedics successfully increased its contribution margin from 57.5% to 59.7% by achieving a richer product and country mix. It also reduced its external charges and personnel costs by 6%.
It thus reduced its operating loss by more than €703 thousand over the period (€5.4 million vs. €6.1 million in FY 2016).
After €1.1 million in net financial expense, primarily reflecting currency effects (translation differences on the US subsidiary’s current account and trade receivables), and zero income tax expense for the period, Safe Orthopaedics’ net loss came to €6.6 million, compared with €6.0 million one year earlier.
First-quarter 2018 revenues up 22% to €931 thousand
|in thousands of euros||
|Rest of the World||446||343||+30%|
1 Revenues adjusted for operations discontinued in the United States since March 1, 2016
2 Source: Company
First-quarter 2018 revenues grew 22%.
Sales in France advanced 15%. Growth fell slightly short of management’s expectations because of the reorganization of a longstanding sales territory and the time spent integrating and training the two new sales representatives who joined the team in late 2017. The four other sales representatives achieved growth in excess of 30% in their respective territories.
In the Rest of the World segment, sales advanced 30% thanks to the healthy growth recorded by longstanding distributors in Europe and those recently added in Latin America. What’s more, sales in Germany contributed 27% of the growth posted by the Rest of the World segment. This performance reflected the start-up of the sales teams in Germany in the fourth quarter of 2017 and the first routine use of Safe Orthopaedics’ technologies in university and/or military trauma centers—a promising sign for future quarters.
Cash burn reduced in 2017 and €1.9 million in cash at March 31, 2018
Safe Orthopaedics successfully reduced its cash burn to €5 million, a reduction of 15% compared with 2016. In an orthopedics market attracting major instruments in reusable instruments that are directly linked to growth, Safe Orthopaedics’ single-use technologies provide a genuine means of improving financial performance.
Safe Orthopaedics’ cash at March 31, 2018 stood at €1.9 million compared with €2.2 million at March 31, 2017. The Company also has €3.3 million in additional sources of financing available to it.
Key upcoming dates in the financial calendar
- General Shareholders’ Meeting, Thursday June 28, 2018
- Second-quarter 2018 revenues: July 10, 2018 (after close)
About Safe Orthopaedics
Founded in 2010, Safe Orthopaedics is a French medical technology company that offers the safest technologies to treat spinal fracture. Delivered sterile, all implants and respective disposable instrumentation are available to the surgeon at any time, any place. These technologies enable minimally invasive approaches, reducing risks of cross contamination and infection in the interest of the patient. Protected by 17 patent families, the SteriSpine™ Kits are CE marked and FDA cleared. The company is based at Eragny-Sur-Oise (France), and has 36 employees.
For more information, visit: www.SafeOrtho.com