Tecan reports significant growth in sales and profits in 2020 based on extraordinary demand for COVID-19 related products - Seite 3

The reported EBITDA margin grew correspondingly by 250 basis points to 21.8% of sales (2019: 19.3%). Assuming exchange rates in line with 2019, the reported EBITDA margin would have stood at 22.5% of sales.

Reported net profit for the year 2020 rose by 41.7% to CHF 103.7 million (2019: CHF 73.2 million). Thanks to an improved financial result, net profit increased by more than operating profit (earnings before interest and taxes; EBIT). The net profit margin amounted to 14.2% of sales (2019: 11.5%), while earnings per share rose strongly to CHF 8.69 (2019: CHF 6.18).

Cash flow from operating activities more than doubled to CHF 208.3 million (2019: CHF 98.8 million), due to a focus on cash collection and management. Thus, cash flow from operating activities corresponded to 28.5% of sales (2019: 15.5%).

Information by business segment

Life Sciences Business (end-customer business)
Sales in the Life Sciences Business segment grew strongly by 13.2% to CHF 408.8 million in fiscal year 2020 (2019: CHF 361.2 million). This equates to a rise of 18.7% in local currencies. The Life Sciences Business experienced strong demand for products supporting the COVID-19 response, mainly liquid handling and automation workstations as well as the associated disposable pipette tips. Despite the strong increase in sales, parts of the Life Sciences Business also experienced significant disruption as customer facilities were closed or access was restricted to slow the spread of COVID-19. Product groups adversely impacted included detection instruments, research reagents for next-generation sequencing (NGS) and consumables for mass spectrometry sample preparation.
Sales growth accelerated further in the second half of the year, with sales increasing by 26.2% in local currencies
Order entry in the Life Sciences Business outpaced recognized revenues significantly in the fiscal year 2020, with order backlog increasing at a high double-digit rate.

Reported operating profit in this segment (earnings before interest and taxes; EBIT) rose to CHF 78.2 million (2019: CHF 56.7 million). The operating profit margin increased to 17.4% of sales (2019: 15.1%). This positive performance is primarily a result of sales growth as well as a strong margin contribution from the consumables business.

Partnering Business (OEM business)
The Partnering Business generated sales of CHF 322.1 million during the year under review (2019: CHF 275.7 million), which corresponds to a strong increase of 18.8% in local currencies and 16.8% in Swiss francs.