Vita 34 surpasses full-year guidance for 2018 at earnings level
- Revenues increased by 6.3 percent to EUR 20.4 million
- EBITDA multiplies due to efficiency measures to EUR 4.7 million
- Tripling of operating cash flow to EUR 4.6 million underlines high profitability in the group
Leipzig, 28 March 2019 - After successfully implemented efficiency enhancement measures, Vita 34 AG (ISIN: DE000A0BL849, WKN: A0BL84), one of the largest cell banks in Europe, can look back on a very successful financial year in 2018. The sustained expansion of profit margins and operating cash flow build the ideal fundament for the further organic and inorganic development of the company to become Europe's market-leading cell bank.
At EUR 20.4 million, revenues for the full year 2018 were 6.3 percent higher than in the previous year (FY 2017: EUR 19.2 million), while gross profit increased by 10.9 percent to EUR 12.0 million (FY 2017: EUR 10.8 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) increased disproportionately by 155.9 percent to EUR 4.7 million after EUR 1.8 million in the previous year due to sustainably optimized expenses for administration, sales and marketing as well as acquisition-related one-off expenses. At 23.1 percent, the EBITDA margin was also significantly higher than in the previous year (FY 2017: 9.6 percent).
"The changes on the part of our sales partners, which have already been explained several times in recent quarters, have led us sales in 2018, which were to slightly below our expectations," explains Dr. Wolfgang Knirsch, CEO of Vita 34 AG. "But due to the very successful business development in the DACH region and the consistent implementation of our efficiency enhancement measures, we were on the other hand even able to slightly exceed our EBITDA target."
The sales and earnings development in the foreign markets (outside the DACH region) was characterized by a large number of effects. In Denmark, after discontinuing its own sales activities and entering into a partnership with a hospital chain, the Group continues to develop positively. The new distribution partners are also becoming increasingly stable following initial ramp-up effects and will contribute to Group growth in 2019.
The financial result amounted to EUR -0.8 million after EUR -0.2 million in the previous year, which is attributable to one-time depreciations especially on loans to a Slovak distribution company. This is due to changes in country-specific approval requirements in the Slovak market.
The other significant financial figures in the Group developed well. Operating cash flow tripled year-on-year to EUR 4.6 million (FY 2017: EUR 1.5 million), which was attributable on the one hand to the positive business development and, on the other hand, to a considerable extent to optimized working capital management. Trade receivables were reduced significantly from EUR 3.7 million in the previous year to EUR 2.7 million most recently. In addition, the company sold about EUR 2.4 million in financial assets and partly used the proceeds to repay financial loans. The debt from loans decreased accordingly at the end of the year to EUR 7.7 million. In contrast to this, cash and cash equivalents amounted to EUR 7.0 million.
The key performance indicators for business development in 2018 are as follows:
|EBITDA margin [%]
|Cash and cash equivalents [end of period]
"After a year of optimization and internal strengthening, we will return to expansion mode in 2019 as well," summarizes CEO Dr. Wolfgang Knirsch. "We aim to successfully complete another acquisition this year."
Against the backdrop of a consolidating market, the Executive Board expects the business to continue its dynamic development. Nonetheless, in his forecasts he responds with due respect to the currently subdued general economic climate. For the full year 2019, the Management Board therefore expects sales of between EUR 21.0 and 23.0 million as well as an EBITDA of between EUR 5.0 and 5.6 million. Inorganic effects are not part of the prognosis.
The complete Annual Report 2018 can be downloaded from the Vita 34 AG website at https://www.vita34.de/en/investor-relations/financial-reports/.
Vita 34 AG
Phone: +49 (0341) 48792 - 0
Mobile: +49 (0174) 9091190
Vita 34 was founded in Leipzig in 1997 and is today one of the leading cell banks in Europe. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has since then been a complete provider of cryopreservation services for the collection, processing and storage of stem cells from umbilical cord blood and umbilical cord tissue. Based on the expansion of the business model in 2019, Vita 34 intends to also offer the storage of stem cells from endogenous fat as well as immune cells and cell preparations from peripheral blood and umbilical cord blood in the future. The body's own cells are a valuable source of medical cell therapy and are kept alive at temperatures as low as minus 200 degrees Celsius for use as part of a treatment when needed. More than 230,000 customers from more than 20 countries have already provided for their family's health with a cell depot at Vita 34.
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