Velan Q1 sales rise 18.6%, raises dividend

Overview

• Velan's fiscal Q1 sales rise 18.6% to $72.2 mln, boosting gross profit margin

• Reports net income from continuing operations of $17.8 mln compared to loss of $2.2 mln a year earlier

• Increases quarterly dividend to C$0.10 per share from C$0.03

Outlook

• Velan expects to deliver solid performance despite tariff uncertainties

• Company reassessing capital allocation strategy due to strong financial position, per CEO James A. Mannebach

• Company expects 84.4% of backlog delivered in next 12 months

Result Drivers

• SALES GROWTH - Sales increased by 18.6% to $72.2 million, driven by higher shipments from Italian operations for oil & gas and increased business volume in China, India, and Germany

• GROSS PROFIT IMPROVEMENT - Gross profit margin rose to 28.6% from 27.6% last year, due to better absorption of fixed costs and a favorable product mix

• BACKLOG INCREASE - Backlog grew by 4.1% to $286.1 million, supported by strong MRO bookings and a sequential improvement in new orders

Key Details

Press Release: ID:nGNX94bGP6