Half-year report January-June 2008

Doubled sales growth and strong cash flow during the first six months.
“We have now had more than 20 quarters in a row with increased sales compared with the previous year,” says Magnus Nilsson, CEO.

• Sales increased by 19 percent to SEK 115.2 (96.8) million. Calculated in local sales currencies growth was 21 percent. During the second quarter sales amounted to SEK 56.6 (47.5) million, corresponding to an increase of 19 percent. Calculated in local sales currencies growth was 22 percent. This was Vitrolife’s 22nd quarter in a row with increased sales compared with the previous year.

• Gross income increased by 19 percent to SEK 79.9 (67.0) million, the gross margin was 69 percent (69). Gross income for the second quarter increased by 18 percent to SEK 39.3 (33.3) million and the gross margin was 70 (70) percent.

• Operating income increased by 20 percent and amounted to SEK 16.6 (13.8) million, which gives an operating margin of 14 (14) percent. For the second quarter operating income amounted to SEK 6.0 (5.9) million.

• Operating income before research and development costs increased by 18 percent to SEK 31.9 (27.0) million. This corresponds to a margin of 28 (28) percent. For the second quarter the increase was 10 percent to SEK 13.6 (12.4) million, a margin of 24 percent (26).

• Consolidated net income was SEK 14.0 (20.5) million, which gives earnings per share of SEK 0.71 (1.04). Net income increased by 14 percent adjusted for last year’s capitalization of the deferred tax asset in loss carry-forward for tax purposes to the tune of SEK 8.2 million. For the second quarter net income was SEK 6.0 (9.5) million and earnings per share were SEK 0.30 (0.48). Last year’s figure includes capitalization of a deferred tax asset in loss carry-forward for tax purposes to the tune of SEK 4.1 million.

• The cash flow from operating activities increased by 72 percent and amounted to SEK 21.3 (12.3) million. The cash flow for the second quarter was SEK 14.5 (7.3) million. Vitrolife has net cash and bank balances of SEK 5.5 million (net debt 7.2).

• The equity/assets ratio amounted to 83 percent (83).

• Very good sales development for fertility products in China, plus 91 percent.

• Start of direct marketing of all fertility products in France.

• Products for the cold storage of embryos approved in Europe.

• IVF products approved in Russia.

• STEEN Solution™ approved in Australia.

• Acquisition of a further 9 percent of the Italian subsidiary A.T.S. after the end of the period, according to plan.


July 15, 2008
Kungsbacka, Sweden

The Board and the CEO


Queries should be addressed to:
Magnus Nilsson, CEO, phone +46 31 721 80 00 or +46 708 22 80 61.
Anna Ahlberg, CFO, phone +46 31 721 80 13 or +46 708 22 80 13.

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