Vita 34 AG / Key word(s): Forecast
Vita 34 lowers sales and earnings guidance due to IFRS 15 effect and accelerated restructuring measures
Leipzig, 29 August 2022 - In close coordination with its legal and business advisors, Vita 34 AG has today succeeded in reaching an agreement to structure its storage contracts with customers in the PBKM subgroup in such a way that they can be accounted for again for a longer period of time - similar to the original accounting at PBKM. From today’s perspective, the positive effect of this decision amounts to around EUR 9.0 million per year and has an equal impact on Group sales and earnings before interest, taxes, depreciation and amortization (EBITDA). This will be taken into account in the contractual regulations with immediate effect.
However, since due to the nature of Vita 34's business model, contract conclusions lead to invoicing after average four to six weeks at the earliest, the consensus reached today will have a positive effect on the Company's consolidated revenues and earnings from the fourth quarter of 2022 onwards with minor impact on the third quarter. In its forecast for the full year, however, the company has already anticipated this effect from the beginning of the third quarter, which leads to the fact that both the estimate of consolidated revenue and EBITDA expected in 2022 were assumed EUR 2.5 million too high.
In addition, the Management Board has decided today to bring forward significant restructuring measures to leverage post-merger synergies to the current financial year 2022 in view of the current market environment. The location measures relate especially to the markets of Poland, Portugal, Switzerland and Spain and will result in a non-recurring special charge at EBITDA level of EUR -1.5 million.
Against the background of the aforementioned effects and the continuing difficult market environment, the Management Board is adjusting the forecast ranges for consolidated sales to EUR 65 to 72 million (previously: EUR 68 to 75 million) and for EBITDA to EUR -6.0 to -3.0 million (previously: EUR -2 to +1 million).
Information and Explanation of the Issuer to this announcement:
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.
29-Aug-2022 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Vita 34 AG
Deutscher Platz 5a
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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