Development of Vita 34 AG in 2022 stressed by weakened consumption power of consumers along with one-off effects
April 30, 2023 at 06:01 am EDT
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EQS-News: Vita 34 AG
/ Key word(s): Annual Results
Development of Vita 34 AG in 2022 stressed by weakened consumption power of consumers along with one-off effects
30.04.2023 / 12:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
Development of Vita 34 AG in 2022 stressed by weakened consumption power of consumers along with one-off effects
Group revenue of EUR 68.9 million 142.6 percent above previous year after merger with PBKM FamiCord (Guidance: EUR 65 to 72 million)
EBITDA of EUR -3.6 million, mostly due to one-off effects under IFRS-15 (Guidance: EUR -6.0 to -3.0 million)
One-off non-cash negative effect of goodwill impairment leads of EUR 13.8 million
Leipzig, April 30, 2023 - Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), the leading cell bank in Europe and the third largest in the world, looks back on a fiscal year 2022 characterized by several special effects. Group revenue increased significantly as a result of the merger with PBKM FamiCord. However, low birth rates in the Group's core markets, which approached historic lows of the past decades, led to a significant slowdown in operating business development.
Group revenue amounted to EUR 68.9 million, which corresponds to an increase of 142.6 percent compared to the previous year (2021: EUR 28.4 million). While the effects of the pandemic weakened demand in cell banking at the beginning of the year, the Ukraine war and the resulting economic upheavals had a negative impact on the birth rate in Europe's core markets as the year progressed. According to the German Federal Statistical Office, for example, the number of births in Germany fell particularly sharply in the first and fourth quarters of 2022, with declines between 8 and 9 percent, close to the historic lows of the past decades. A similar decline has been also reported in Poland and other European countries.
While production-related material costs increased moderately as a result of long-term supply contracts, the significant rise in inflation led to noticeable increase in personnel and subcontractor costs. Not least against the backdrop of the weakened operating performance, but primarily due to a one-time, non-cash negative effect of EUR 13.8 million from goodwill impairment, the gross margin was reduced significantly to 4.0 percent (2021: 43.8 percent). Adjusted for the impairment effect, the gross margin was around 24 percent. In addition to the above-mentioned disproportionate increase in costs, necessary measures in connection with the harmonization of accounting under IFRS-15 resulted in a negative special effect totaling EUR 9.0 million. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) also declined significantly to EUR -3.6 million (2021: EUR +0.8 million).
Meanwhile, the extensive integration measures resulting from the merger of Vita 34 and PBKM FamiCord have been proceeding according to plan. In Spain, Switzerland and Germany the organizational and/or legal mergers of the subsidiaries were successfully completed. Additionally efficiency enhancement measures were implemented in several business units, mainly focusing on adjustments to avoid structural duplication. In addition, cost-cutting measures at personnel level were implemented mainly in Poland, Portugal and Spain. By contrast, personnel was increased in growth areas at the same time, as a result of which the total number of employees increased slightly to 815 at Group level (2021: 775). In total, one-off costs of EUR 1.0 million were incurred in 2022 for integration measures. Investments in property, plant and equipment (CAPEX) amounted to a further EUR 5.8 million.
The key figures for business development are as follows:
IFRS, in EUR ‘000
2022
2021
∆
Group revenue
68,940
28,419
142.6%
Gross profit
2,735
12,438
-78.0%
EBITDA
-3,564
814
-537.8%
EBITDA margin [%]
-5.2
2.9
-8.0PP
EBIT
-27,283
-3,071
-788.3%
Result for the period
-27,384
-3,926
-597.5%
Earnings per share [in EUR]
-1.71
-0.63
-171.4%
Operating cash flow
-4,486
2,728
-264.4%
Cash and cash equivalents (vs. Dec. 31, 2021)
16,290
33,298
-51.1%
Due to what the Management Board considers to be an overall improvement in the environment for the Group's business activities and the implementation of efficiency enhancement measures, the Management Board expects Group revenue in the range of EUR 75 to 82 million and earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of EUR 5.5 to 7.0 million for the current financial year 2023. This includes expected positive effects from accounting in accordance with IFRS 15 amounting to EUR 5.7 million, which will have an impact on both revenue and earnings, but will not affect liquidity. The forecast is based on a constant exchange rate of the euro to the Polish zloty and other currencies (HUF, RON, TRY, GBP) compared to March 31, 2023. Effects from possible acquisitions, including any transaction costs resulting from this, are not included in the outlook.
Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Phone: +49 (0341) 48792 - 0
Mobile: +49 (0174) 9091190
Email: ingo.middelmenne@vita34.de
Company profile 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 Europe's first private cord blood bank and a pioneer in cell banking, the company has since offered collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissues as a full-service cryopreservation provider. Based on the expansion of the business model that took place after the merger with PBKM, the company intends to invest in the areas of Cell and Gene therapies and CDMO. The body's own cells are a valuable starting material for medical cell therapy and are kept alive in the vapors of liquid nitrogen. Customers from around 50 countries have already ensured the health of their families with more than 930,000 units of stored biological material at Vita 34.
30.04.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Language:
English
Company:
Vita 34 AG
Deutscher Platz 5a
04103 Leipzig
Germany
Phone:
+49(0341)48792-40
Fax:
+49(0341)48792-39
E-mail:
ir@vita34.de
Internet:
www.vita34.de
ISIN:
DE000A0BL849
WKN:
A0BL84
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
Vita 34 International AG is a Germany-based company engaged in the medical technology sector. The Company is involved in the long-term storage and processing of stem cells from human umbilical cord blood. The cells are collected at the childâs birth and can be used later in his or her life for the treatment of many diseases, such as anemia, diabetes, degenerative joint diseases, cancer, neurological deficits after brain injuries, cartilage damages and others. They also allow the growing of whole organs, such as the liver. On average, one out seven individuals, whose cells are stored, receives autologous stem cell transplant by the age of 70. The Company acts as a cord blood bank and is also engaged in research activities in the area of regenerative medicine, including curing the consequences of strokes and heart attacks. The Company operates in Germany, Spain and Denmark.
VITA 34 AG 
