Bavarian Nordic Announces First Half 2021 Results Page 8 of 20
Company Announcement no. 28 / 2021
Cash flow
Cash flow generated by operating activities was negative by DKK
377 million (positive by DKK 672 million), primarily due to
increase in inventories following the market take-overs from GSK
and higher accounts receivables compared to year-end 2020.
Cash flow from investment activities was negative by DKK 1,179
million (negative by DKK 1,945 million) following net investments
in securities of DKK 966 million (net investment of DKK 1,824
million). Cash flow from investment activities also include DKK
171 million (DKK 66 million) of investments in property, plant and
equipment related to the ongoing expansion of the bulk facility
for future production of Rabipur/RabAvert and Encepur.
Investment in other intangible assets amounted to DKK 42 million
(DKK 30 million) and includes the ongoing Rabipur/RabAvert and
Encepur technology transfer project and IT system investments.
Cash flow from financing activities was a contribution of DKK
1,455 million (DKK 1,352 million), following the proceeds from
capital increase through private placement and conclusion of
repo transactions. The net change in cash and cash equivalents
was negative by DKK 102 million (positive by DKK 79 million).
Equity
The Group’s equity as of June 30, 2021 stood at DKK 5,789
million (DKK 4,894 million as of December 31, 2020). The capital
increase through private placement increased the equity by DKK
1,148 million before costs.
Deferred consideration
Deferred consideration for product rights amounted to DKK 2,882
million, an increase of DKK 60 million compared to December 31,
2020, due to the adjustment of net present value following the
unwinding of the discounting effect.
Debt to credit institutions
The Company has concluded repo transactions (further described
in note 15) hence debt to credit institutions increased by DKK 306
million compared to December 31, 2020.
Significant risks and uncertainties
Bavarian Nordic faces a number of risks and uncertainties,
common for the biotech/pharma industry. These relate to
operations, research and development, manufacturing,
commercial and financial activities. For further information
about risks and uncertainties which Bavarian Nordic faces, refer
to page 48-51 “Risk Management” in the 2020 Annual Report.
In addition to the risk factors stated in the annual report, the
COVID-19 situation could impact Bavarian Nordic’s business
adversely by delaying projects, development or manufacturing or
by negatively impacting demand for products.
Outlook for 2021
Bavarian Nordic maintains the financial guidance for 2021,
expecting to meet to the lower end of the previously guided
ranges due to continued COVID-19 impact on the TBE and rabies
markets. Thus, revenue of approximately DKK 1,900 million and
an EBITDA of approximately DKK 100 million are expected. Cash
and cash equivalents at year-end are expected to be
approximately DKK 1,400 million.
The smallpox and Ebola business are not expected to be
impacted by COVID-19.
Other key assumptions for the guidance remain largely
unchanged.
Financial calendar 2021 and 2022
The 2022 dates for announcement of the Company’s financial
reports and the annual general meeting have now been
determined, and planned future reporting dates are as follows:
Nine-month report (Q3) November 12, 2021
2021 Annual Report March 4, 2022
Annual General Meeting* April 5, 2022
Three-month report (Q1) May 9, 2022
Half-year report (Q2) August 24, 2022
Nine-month report (Q3) November 9, 2022
* Pursuant to Article 12 of the Articles of Association,
shareholders who wish to submit a request for proposals for
consideration at the annual general meeting must lodge this with
the Company no later than Monday, February 21, 2022.