Development of Vita 34 AG in 2022 stressed by weakened consumption power of consumers along with one-off effects
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
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:
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.
30.04.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG. |
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 |
EQS News ID: | 1621229 |
End of News | EQS News Service |