Sales Q3/2020

Sales 9M/2020

With regard to the sales development in the individual regions, the picture is ambivalent in the third quarter: While sales in Germany and Europe (excluding Germany) showed signs of recovery from July onwards following the reduction of the lockdown measures, which were reflected in almost equal or even increased sales year-on-year, the remaining international business fell significantly short of the previous year. Developments in Germany benefited from an increased shift of summer vacations to Germany, while sales development in Europe (excluding Germany) was positively influenced in particular by the revival of business in Spain and Portugal, following the lifting of the extremely strict measures in the first half of the year. In the third quarter, foreign business in the BRICS and RoW regions, which is important for aap, was again strongly affected by the effects of the COVID-19 pandemic, since the top-selling international partners here are companies from South Africa, Brazil and Mexico. These countries continue to be the most affected by the COVID-19 pandemic worldwide.
 

The sales development in the first nine months was visibly influenced by the COVID-19 pandemic and the corresponding lockdown measures of the first half year, which is reflected in significantly lower sales compared to the previous year. It should also be noted that even if normality returns, there will be no catch-up effects, as in the consumer goods industry, for example, but at most a return to pre-crisis levels.
 

In the U.S., by contrast, aap continues on a dynamic growth course and was able to increase sales significantly year-on-year in both the third quarter (+68%) and the nine-month period (+43%). This is even more remarkable given that the U.S. is the country with the highest number of COVID-19 infections worldwide. Here, the sales momentum of the first half of the year was maintained and the number of weekly surgeries was sustainably stabilized at a level of up to 50 procedures. In addition, focused efforts to conclude contracts with nationally active companies that give aap access to a U.S. network of clinics and surgical operation centers continue to bear fruit. Overall, aap is aiming for a year-on-year sales increase of at least 30% in the U.S. in the financial year 2020 despite COVID-19.
 

As part of the comprehensive restructuring and refinancing process, the Management Board proposed an ordinary capital reduction in the ratio of 10:1 to aap's shareholders at the Annual General Meeting on August 7, 2020, which was approved by a large majority. The capital reduction was entered into the commercial register on October 5, 2020. Together with the complete placement of the convertible bond, two key elements of the financial restructuring and refinancing were thus successfully implemented. At present, the technical execution of the capital reduction is being carried out from the German stock exchange, so that the adjustment of the share price to the effects of the capital reduction should be carried out soon. On this basis, the Management Board of the Company is currently evaluating further capital measures (e.g. capital increase or further convertible bonds) to secure the financing of the Company in the long term.
 

The figures contained in this press release are preliminary figures as of September 30, 2020, which may still change before its final publication. aap plans to announce the final results for the third quarter and first nine months of 2020 in a press release in the first half of November.



^[1] The disclosure of the other sales revenues still reported in the previous year no longer applies and are now allocated to the individual regions.
^[2] In the previous year, sales to Puerto Rico were reported as part of North America (distributors); from Q3/2019 as part of RoW.