EQS-News: Vita 34 AG / Key word(s): 9 Month figures
Vita 34 benefits from increasing normalization in its core business in the third quarter
Leipzig, 22 November 2022 - Against the backdrop of a still difficult economic environment, Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), the leading cell bank in Europe and third largest in the world, continues to lag behind its potential in its development so far in the current fiscal year. At the same time, however, there were signs of a further normalization of business development in the third quarter, accompanied by a noticeable improvement in the revenue and earnings situation at quarterly level.
As a result of the merger with PBKM FamiCord, revenues in the first nine months were again significantly higher than in the previous year at EUR 50.8 million (9M 2021: EUR 16.1 million). In contrast to the restrained business development in the first half of 2022, which was largely characterized by a clearly perceptible decline in demand from new customers as a result of the Omicron wave and the Ukraine conflict, the normalization of business development that had been apparent since June continued in the third quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) were still significantly lower year-on-year at EUR -1.6 million (9M 2021: EUR 3.1 million), partly due to further investments in the newly emerging activities and in R&D. However, against the backdrop of the resurgence in business development and lower cost of sales due to strict cost control, EBITDA in the third quarter was already back in clearly positive territory at EUR 1.0 million, although not yet at the level of the comparable period of the previous year (Q3 2021: EUR 1.5 million).
"2022 is without question a tough year for us. The restrictions imposed by COVID-19 and Russia's attack on Ukraine, which caused energy prices and inflation to rise abruptly, have acted as a psychological brake on signing a contract for many of our potential customers," says Jakub Baran, CEO of Vita 34 AG. "The new cost pressure on living expenses is very real for many of our customers. Therefore, it is only understandable that expectant parents first have to get used to the new spending levels until they can again mentally consider the unique opportunity that stem cell storage offers at the birth of their child. This normalization of demand is slowly emerging, but it appears to be sustainable."
The key figures for business development are as follows:
Development progress in the new expanding Cell & Gene Therapies and CDMO business units still fell short of expectations. As the sales contribution of the units was still in the low single-digit million euro range and thus below expectations the company decided to slow down the scale of investments both on CAPEX and OPEX side.
"In our new business units, too, we are currently having to pay tribute to the distortions in the general economic environment. Almost all project steps are currently subject to delays”, Jakub Baran continues. "By means of strict cost discipline, we are at least managing to keep our expenses in check. And we are working hard to push the further progress of the project despite all adversities."
The Company has brought the necessary measures in connection with the harmonization of accounting under IFRS 15 to a positive conclusion. The negative effect from the impact of IFRS 15 amounted to EUR 2.5 million in the third quarter and thus to a total of EUR 6.5 million in the first nine months of 2022. "We have now implemented the relevant adjustments in most of the countries in our new contracts in a legally secure manner. This will then have a full positive impact on our accounting from the coming financial year onwards," summarizes Dirk Plaga, CFO of Vita 34 AG.
In view of the current business development and the expected further development in the remainder of the financial year, the Executive Board confirms the current forecast for the full year 2022, which provides for ranges of EUR 65 to 72 million for consolidated sales and EUR -6.0 to -3.0 million for EBITDA.
Vita 34 was founded in Leipzig in 1997 and is today by far the leading cell bank in Europe and the third largest worldwide. As the first private cord blood bank in Europe and a pioneer in cell banking, the company has since been offering collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissue as a full-service provider for cryopreservation. Customers from around 50 countries have already provided for the health of their family with more than 850,000 units of stored biological materials at Vita 34.
22.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
Vita 34 AG
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