Vita 34 AG: Vita 34 AG Starts Fiscal Year 2014 Highly-Profitable and Full of Optimism
Vita 34 AG / Key word(s): Final Results
Vita 34 AG Starts Fiscal Year 2014 Highly-Profitable and Full of Optimism
– Profitability significantly increased: High EBITDA margin of 19.6 percent in 2013
– Positive period profit of EUR 0.8 million confirms successful development of business
– Continuous growth expected in 2014 by expanding international activities and an extended product range
Leipzig, 27 March 2014 – Vita 34 AG (WKN A0BL84), a pioneer in the storage of stem cell from umbilical cord blood and tissue, and a specialist in cryo-preservation, published its financial figures for the year 2013 today. The company was able to continue the positive trend of the prior quarters in Q4, as well. Thereby the existing diversification of the business model had a stabilizing effect on the revenue trend. The in 2012 newly established Biotechnology business segment and the consistent implementation of cost optimization measures contributed greatly to a significant increase in profitability.
The total operating income in the reporting period rose to a total of EUR 14.9 million (2012: EUR 14.3 million). Revenues in the reporting period were at the prior year’s level of EUR 13.6 million (2012: EUR 13.6 million). The contribution to revenues made by the Stem Cell Storage business segment was amounted to EUR 13.1 million (2012: EUR 13.3 million). The trend in new storages in the core markets of Germany, Spain and Italy was slightly declining. The total number of storages of umbilical cord blood and tissue in 2013 was 7,167 (2012: 7,417 storages). At the same time, thanks to the successful expansion of business activities in the Biotechnology business segment, some EUR 0.5 million (2012: EUR 0.3 million) were earned here. In all, this business segment contributed EUR 1.4 million (2012: EUR 0.7 million) to the sum of operating profits of the company.
Vita 34 was successful in increasing profitability significantly while keeping revenues stable. The selling expenses were reduced by 18.6 percent, and administrative expenses by 6.0 percent. Therefore, the ratio of selling expenses was reduced to 34.7 percent (2012: 42.4 percent), and the administrative costs to 21.4 percent (2012: 22.7 percent). The earnings before interest, taxes, depreciation and amortization (EBITDA) in the 2013 reporting period trended positively, and could be significantly increased to EUR 2.7 million (2012: EUR 0.4 million). This is equivalent to a high EBITDA margin of 19.6 percent (measured against revenues). Moreover, the operating profit (EBIT) improved significantly and was EUR 1.5 million in fiscal year 2013, following EUR -0.7 million the prior year. Whereas the group result in 2012 had still been negative, the group profit in 2013 was EUR 0.8 million (prior year: EUR -0.6 million).
In light of the positive development, Dr. André Gerth, Chairman of the Management Board at Vita 34 AG is very satisfied and sees outstanding opportunities for the company in the current year 2014, as well. “In a challenging market environment in 2013 we laid the cornerstone for sustainable, profitable growth with the expansion of our product range, increasing internationalization, as well as the consistent implementation of optimization measures.”
In the reporting period Vita 34 received the necessary permits for the processing, cryo-preservation and storage of umbilical cord tissue. This allows the company to enter into contracts for collecting umbilical cord tissue with all partner clinics in Germany, Austria, and Switzerland. With these permits granted in accordance with the German Pharmaceuticals Act, Vita 34 is the only stem cell bank in Germany that can store not only umbilical cord blood, but also umbilical cord tissue according to Good Manufacturing Practice (GMP) guidelines. The first umbilical cord tissue storages took place in 2013 already. The introduction of umbilical cord tissue storage is being prepared with the respective partners in Slovenia, Romania, Bulgaria, Macedonia, and Croatia, as well. With “VitaPlusNabelSchnur” [VitaPlusCord] Vita 34 has decisively expanded its product ranged and created opportunities for additional potential revenues and profits.
At the same time, Vita 34 continued to expand its international presence in the reporting period. Vita 34 expanded the cooperative sales venture with its Serbian partner Bio Save d.o.o. to Macedonia, Bosnia-Hercegovina, Romania, and Croatia, in order to profit from potential attractive markets and additional income in the medium term. Outside of Germany Vita 34 offers the storage of stem cells from umbilical cord blood and cord tissue on the European and global market via subsidiaries and cooperative venture partners in a total of 16 countries. As of year’s end 2013 Vita 34 also had acquired 75.24%, a majority share, of the umbilical cord blood bank stellacure GmbH, and gained demonstrated competence in the field of private umbilical cord blood banking.
Considering the positive development of business in 2013, Vita 34 is confident of being able to continue the positive trend in fiscal year 2014. Vita 34 expects a moderate increase in revenues and an increase in EBITDA to approx. EUR 3.3 million. The company considers the major drivers of growth to be its broad international presence, increased and targeted marketing and sales measures, as well as expanded activities in research and development for further expanding the product range.
The Supervisory Board approved the annual financial statements and annual report of Vita 34 AG for fiscal year 2013 on 21 March 2014. Furthermore, Dr. Hans-Georg Giering, who was elected as a member of the Supervisory Board by the Annual General Meeting on 25 July 2013, was appointed Deputy Chairman of the Supervisory Board.
Overview of key financial data (In millions of Euro):
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 umbilical cord blood and tissue. The basis for its successful work is an outstanding position in the technological segment of cryo-preservation. Here, cells and tissues are preserved alive at temperatures around minus 190 degrees Celsius, and can be used if needed in the context of medical treatment. Parents of approximately 100,000 children are already taking advantage of this offering and have provided for their children with a stem cell deposit at this Leipzig company.
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|Company:||Vita 34 AG|
|Deutscher Platz 5a|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart|
|End of News||DGAP News-Service|