DGAP-News: aap Implantate AG / Key word(s): Quarter Results
aap Implantate AG ("aap" or "Company") has successfully started the financial year 2021 with sales growth and a significant improvement in earnings. Although the first quarter continued to be impacted by the still rampant COVID-19 pandemic, aap increased sales by 9% year-on-year to EUR 2.7 million (Q1/2020: EUR 2.5 million). Considering constant exchange rates, the growth rate was even 12%. Regarding earnings, the Company recorded significantly improved EBITDA of EUR -0.2 million in the first quarter of 2021 compared to the corresponding period of the previous year (Q1/2020: EUR -2.2 million), which thus visibly reflects the successes in restructuring. Excluding one-time effects, recurring EBITDA in the first three months of 2021 also improved substantially year-on-year to EUR -0.2 million (Q1/2020: EUR -1.4 million).
Q1/2021 - Key results and progress
- Sales by region: Recovery of business in Germany (+15%) and internationally (excluding USA; +14%) despite still noticeable impact of COVID-19 pandemic
- USA: Continued dynamic development with new record level of surgeries performed per quarter (>500) and sales growth in distribution business (+24%)
- Earnings: Significant improvement in EBITDA to EUR -0.2 million (Q1/2020: EUR -2.2 million) due to sales growth, increase in gross margin and sharply reduced cost level; recurring EBITDA adjusted for one-time effects also substantially improved to EUR -0.2 million (Q1/2020: EUR -1.4 million)
- Gross margin and costs: Increase in gross margin to 89% (Q1/2020: 86%) primarily due to improved product, customer and price mix as well as efficiency improvements in manufacturing process; sharply reduced cost level with declining personnel (-29%) and other costs as well as significant decrease in one-time effects
- Cash flow and balance sheet: Significantly improved EBITDA lead to nearly balanced operating cash flow of EUR -0.2 million (Q1/2020: EUR -2.4 million)
- Silver coating technology: Progressing preparations of human clinical study in Germany with focus on stabilization and standardization of production process, data validation and regulatory compliance; further test coatings performed for potential first joint development projects to be completed; ongoing talks with global medical technology companies on potential co-funding of study and further collaboration opportunities
- Resorbable magnesium implant technology: Currently intensive and very promising talks with technology-savvy investors to finance the further development up to the complete sale of the technology
In the USA, aap continues to record dynamic development: In the first three months, more than 500 surgeries were performed with aap products, more than ever before. Based on this, sales in the US distribution business increased by 24% to EUR 0.7 million. In the overall US market, sales development in the first quarter of 2021 stabilized at the level of the previous year, as the first quarter of 2020 was still impacted by a major order from a global partner, which thereafter only ordered consumables on a much smaller scale. Basically, the trend shown - continuous increase in weekly surgeries - supports the achievement of the ambitious growth targets for 2021 in the USA. This momentum is driven particularly by the contracts concluded with US-wide purchasing associations and networks that give aap access to many clinics and surgical operation centers.
- Improvement in gross margin to 89% (Q1/2020: 86%)
- Significant decrease in personnel expenses by 29% or EUR 0.6 million to EUR 1.6 million compared to Q1/2020
- Declining trend in other costs with significantly reduced one-time expenses (Q1/2021: EUR -0.2 million; Q1/2020: EUR -0.7 million)
Based on the development in the first quarter, the Management Board is confident that as the COVID-19 pandemic continues to subside in conjunction with the withdrawal of the lockdown measures and thus the opening of the markets, a further dynamization of sales will occur in the coming quarters and thus positive EBITDA can be achieved in the operating trauma business for the first time since the focus on trauma. Accordingly, aap expects sales growth for the second quarter of 2021 and plans a sales level above the EUR 3 million mark (Q2/2020: EUR 1.9 million, H1/2020: EUR 4.4 million) and balanced to slightly positive EBITDA. However, based on the current order situation, this only applies under the condition that the COVID-19 pandemic continues to ease, and no additional drastic lockdown measures are imposed.
For queries, please contact: aap Implantate AG; Fabian Franke; Head of Investor Relations; Lorenzweg 5; 12099 Berlin, Germany; Phone: +49 (0)30 75019 - 134; Fax: +49 (0)30 75019 - 290; Email: email@example.com
28.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
aap Implantate AG
+49 (0) 30 75 01 90
+49 (0) 30 75 01 91 11
Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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