Vita 34 AG: Continued Growth Trend Following Acquisition – Vita 34 with Further Significant Sales and Earnings Growth in Q4
DGAP-News: Vita 34 AG / Key word(s): Final Results
Continued Growth Trend Following Acquisition – Vita 34 with Further Significant Sales and Earnings Growth in Q4
– Sales (Q4) increased by 25.6% to EUR 5.4 million
– EBITDA (Q4) grew again by a significantly higher than proportional 57.1% to EUR 1.1 million
– EBITDA margin (Q4) of 19.4% a clear indication of sustained increase in profitability
Leipzig, Germany, March 28, 2018 – Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), the second largest umbilical cord blood bank in Europe, continues to grow. The Company has again recorded a significant growth in sales and earnings in the fourth quarter of 2017 compared with the previous year.
Sales grew in the fourth quarter by 25.6% to EUR 5.4 million compared to the previous year (Q4 2016: EUR 4.3 million). In Q4 2017 this was even more apparent with a more than proportionate increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) of 57.1% to EUR 1.1 million (Q4 2016: EUR 0.7 million). As a result, there was also a positive increase in the EBITDA margin, which increased to 19.4% following 16.2% in the same period in the previous year.
“The fourth quarter of 2017 reflects, as did the third quarter of 2017, the sales and earnings strength of the new Vita 34 following the successful integration of the latest acquisition. The more than proportionate increase in EBITDA compared to sales is primarily due to the expansion of the end-customer business in the German market,” explained Falk Neukirch, Finance Director of Vita 34 AG. “The new quality of earnings provides for a continued comfortable liquidity position, ensuring Vita 34 AG’s financial flexibility.”
The Company’s significant key financial figures in the fiscal year 2017 were as follows:
Revenue and EBITDA for the year as a whole were in the medium to higher expectations range of EUR 18.9 to EUR 19.4 million for sales revenue and EUR 1.6 to EUR 1.9 million for EBITDA. The decline in earnings compared to the previous year is due to the one-off expenses incurred in connection with the acquisition and integration of Seracell, specifically the transaction costs of EUR 0.3 million and integration costs, including redundancy and termination costs, of EUR 0.7 million. In addition, costs resulting from management changes amounted to EUR 0.4 million.
The Company having now finished the Seracell integration on the expense side, Dr. Wolfgang Knirsch, Chairman of the Management Board of Vita 34, considers the Company well prepared for further growth. “We see ourselves very clearly playing an active role in the market consolidation,” he emphasizes. “We continue to examine the market for attractive companies in order to grow further, both geographically and along the value-added chain. In addition, we will also drive forward with our organic growth.” For this purpose, Vita 34 plans to expand its own product portfolio, primarily with the use of new products and by means of cooperation arrangements. Driving forces in the future will be the increasing range of applications for cell deposits in individualized medicine, as well as the establishment of public stem cell banks in European countries (B2G). Parallel to this we continue to work on leveraging our cost optimization potential.
“All in all, we see ourselves completely on track to meet our medium-term objectives,” concludes Knirsch. “By the end of this year we will again have made significant progress on route to an EBITDA of EUR 10 million, which we are aiming for in our ‘Vision 2021′”. The Management Board expects that the current positive growth trend will continue in the current fiscal year 2018 and expects sales revenue of between EUR 21.0 million and EUR 23.0 million and an EBITDA of between EUR 4.0 million and EUR 4.6 million, representing an EBITDA margin of 19% – 20%.
The Management Board of Vita 34 AG will be available to discuss the annual results in more detail with qualified investors, analysts, and the press at 1:00 PM today during a public telephone conference. To register for the call, please contact the Investor Relations department by email (email@example.com).
The complete annual report 2017 is available for download from the Vita 34 AG website at https://www.vita34.de/en/investor-relations/financial-reports/
|Company:||Vita 34 AG|
|Deutscher Platz 5a|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|