Vita 34 AG: Strong New Customer Business Allows Vita 34 to Grow Significantly in Q3
DGAP-News: Vita 34 AG / Key word(s): 9-month figures/Quarter Results
Strong New Customer Business Allows Vita 34 to Grow Significantly in Q3
– Relevant new storages (Germany) increase approx. 40% since acquisition
– Revenues increase by 39.5 percent to EUR 5.6 million
– EBITDA increases disproportionally by 50.1 percent to EUR 1.1 million
– EBITDA margin of 19.9 percent significantly improved
Leipzig, 23 November 2017 – Vita 34 AG (ISIN:DE000A0BL849; WKN: A0BL84), the second largest stem cell bank in Europe, has grown significantly as compared with the prior year following completion of the acquisition of Seracell in the third quarter. A strong increase in new storage numbers provided for considerable growth, both in revenues as well as in earnings before interest, taxes, depreciation and amortization (EBITDA).
Revenues in the third quarter increased by 39.5 percent as compared with the prior year to EUR 5.6 million (Q3 2016: EUR 4.0 million). The number of new umbilical cord blood storages in Germany increased by approx. 40 percent to a total of 1,129 (Q3 2016: 805). EBITDA increased disproportionally by 50.1 percent to EUR 1.1 million (Q3 2016: EUR 0.7 million), whereby the EBITDA margin increased from 18.5 percent to 19.9 percent. The net result for the period of EUR 0.2 million was slightly lower than the prior year’s level (Q3 2016: EUR 0.3 million) in the wake of increased depreciation from the acquisition. Cash and cash equivalents multiplied as a result of the completed capital increases, prior to the payment of the second purchase price installment, to EUR 10.6 million (Q3 2016: EUR 2.6 million).
Isolated effects in conjunction with the acquisition of Seracell and changes in the Management Board, which led to adjustments in the sales and profit targets for 2017 in August, had the expected effect on the first nine months of the current fiscal year. From 2018 onward, Vita 34 expects planned effects from the purchase price allocation with no additional expenses resulting from the acquisition.
“The third quarter reveals for the first time in approximation, in which direction Vita 34 will develop in the future,” underscored Dr. Wolfgang Knirsch, Chairman of the Management Board of Vita 34 AG. “As anticipated, we have significantly increased the number of new storages in Germany already in the first months following the acquisition. Through even more target group-oriented marketing measures and additional attractive pricing models, we wish to increase this even further in the coming months and years.”
The marketing of the Seracell range of products was stopped following the acquisition. In the first half of the quarter, new storages based on the Seracell offering with lower margins were included in the profit for the quarter. “This effect led to a dilution of margin in Q3,” emphasized Falk Neukirch, Chief Financial Officer at Vita 34. “At the same time, however, we observed that some 40 percent of the new customer segment that had previously been served by Seracell chose the Vita 34 product in the second half of the quarter. I expect that this effect will become even more visible in Q4 and an EBITDA margin of more than 20 percent will be established. With this we have already reached an important milestone in our ‘Vision 2021’.”
Within the scope of “Vision 2021” developed by the Management Board, Vita 34 is pursuing the medium-term goal of increasing to an EBITDA target of EUR 10 million by around 2021. Important building blocks of this strategy are increasing new customer business by means of marketing measures that are oriented even more strongly towards target groups, as well as the introduction of new pricing models. Additional elements are the development of new products, strong international growth through continuing the Buy and Build strategy, and not least significant cost savings in the group, for example, in unprofitable subsidiaries.
The Management Board stands by the forecast for business development in the current year 2017. The Management Board of Vita 34 AG is available to qualified investors and members of the press at 2:00 PM today within the context of an open conference call for further elaboration on the nine-month results. Registration for this conference call will take place by email via the Investor Relations department (IR@vita34.de).
The complete report on company development in the first nine months of 2017 is available on the Vita 34 AG website at https://www.vita34.de/en/investor-relations/financial-reports/.
Vita 34 was founded in 1997 as the first private umbilical cord blood bank in Europe and, as a complete provider, offers collection logistics, preparation and storage of stem cells from umbilical cord blood and tissue. Stem cells are a valuable base material for medical cell therapy and are kept alive at temperatures of negative 180 degrees Celsius, in order to be available for use in a treatment if needed. Some 200,000 customers are already taking advantage of this offering and have provided for their children with a stem cell deposit at Vita 34.
|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|