Vita 34 AG: Vita 34 returns to Profitability


Vita 34 AG / Key word(s): Half Year Results

25.07.2013 / 07:34


Vita 34 AG: Vita 34 returns to Profitability

– Successful increase in efficiency with a significant positive effect on group profits

– Earnings before interest, taxes, depreciation and amortization (EBITDA) boosted to EUR 898k, strong EBITDA margin of 13.8%

– Positive operating profit (EBIT) of EUR 308k following EUR -476 the year before

Leipzig, July 25, 2013 – Vita 34 AG (WKN A0BL84), Europe’s oldest private stem cell bank and a specialist for cryo-preservation, published its financial data for the first six months of the year 2013 today. The company was able to post a positive development in the current fiscal year 2013. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly in the first half-year 2013 to EUR 898k, following EUR 27k in the first half-year 2012. Measured against revenues, Vita 34 earned a very strong EBITDA margin of 13.8%. EBIT also increased significantly, and in the 2013 reporting period was EUR 308k (first half-year 2012: EUR -476k). The cost-reduction measures initiated in fiscal year 2012 and continued successfully in the reporting period had a positive effect. In all, the company succeeded in reducing selling expenses significantly in the first half-year 2013 by 26.4% to EUR 2.4 million from EUR 3.2 million in the prior year’s period. The group result improved markedly as a result to EUR 68K, in the wake of EUR -375k in the comparable period in 2012.

In the reporting period Vita 34 posted revenues of EUR 6.5 million, which was at the prior year’s level of EUR 6.6 million. Overall, gross profit was reduced to EUR 3.7 million (first half-year 2012: 4.1 million), which is equivalent to a gross margin of nearly 57%. In the first half-year 2013 the number of umbilical cord blood storages totaled 3,750 and was, therefore, with only 4% only slightly lower than the prior year’s period with 3,718 umbilical cord blood storages.

Dr. André Gerth, Chairman of the Management Board at Vita 34 AG, was pleased with the profit earned and development of the company as a whole: ‘With a positive EBIT and a significantly increased EBITDA, we have reached our goals completely in the first six months. We have been able to increase the EBITDA margin to 13.8%. We see the fact that we have been able to do this with the current reticence regarding umbilical cord blood storage as clear evidence for the viability and sustainability of our business model.’Above all, this was made possible by the successful implementation of measures for increasing efficiency and profitability. Dr. Gerth is also optimistic about the future: ‘We have continuously pursued our expansion strategy via cooperative ventures and sales partners outside of Germany for a positive future development, and have opened up additional, strategic sales opportunities for ourselves in attractive markets. Moreover, we have successfully concluded preparations for expanding our product range.’

Thus, Vita 34 made important headway on the international markets in the first six months of 2013: The cooperative sales arrangement with partner Bio Save d.o.o. was expanded to Montenegro, Macedonia, Bosnia-Hercegovina, Romania and Croatia. In Bulgaria, Vita 34 is now working together with an additional cooperation partner. Vita 34 will, as is usual in the case of European cooperative ventures, handle the preparation and storage of the umbilical cord blood in Leipzig.

The company has also created all of the prerequisites for the planned expansion of the product range with ‘VitaPlusNabelschnur’ [VitaPlusUmbilicalCord], in order to perform the storage of umbilical cord tissue in accordance with Good Manufacturing Practice guidelines (GMP). With the expected permit issuance this year, Vita 34 will be the only private umbilical cord blood bank in Germany that can not only store umbilical cord blood, but also umbilical cord tissue, thus following the international development for the use of mesenchymal stem cells.

Dr. Gerth considers himself well positioned for the long-term strategic company orientation. ‘We have taken decisive steps for opening up additional growth markets and for a positive future development of business. In the long term, we will energetically pursue the development from an umbilical cord blood bank to a service provider and supplier of cell products for pharmaceutical and therapeutic applications. We also want to make an international name for ourselves as a stem cell bank and specialist for cryo-preservation.’

From today onwards the complete interim report covering the first six months of 2013 can be downloaded from the ‘Investor Relations’ section of the company’s website at www.vita34group.com.

Overview of financial data (in EUR k):

  H1 2013 H1 2012
Revenues 6,502 6,626
Gross Profit 3,680 4,081
EBITDA 898 27
EBIT 308 -476
Earnings for the period 68 -375
Earnings per share (in EUR) 0.04 -0.14
Balance sheet total 35,039 34,352
Equity 20,562 19,634
Equity ratio 58.7 57.1
Current interest-bearing loans 717 1,791
Cash and cash equivalents 2,625 2,635
 

Company Profile

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. 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 more than 95,000 children are already taking advantage of this offering and have provided for their children with a stem cell deposit at this Leipzig company.

 



End of Corporate News


25.07.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de



222791  25.07.2013