Vita 34 closes first half-year 2019 with operating profit margins at record levels
- Revenues of EUR 9.8 million influenced by positive development in DACH region
- EBITDA increases dynamically by 39.7 percent to EUR 2.8 million, EBITDA margin rises to 28.6 percent
- Profit for the period almost doubled to over EUR 1.0 million
Leipzig, 29 August 2019 - Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), one of the largest cell banks in Europe, continued its dynamic development in the first half of 2019. Particularly in the DACH region, the company continued to grow organically as a result of successfully launched marketing measures.
As expected, revenues of EUR 9.8 million in the first half of the year were still slightly below the previous year's level (H1 2018: EUR 10.2 million) due to the already communicated change of sales partners. However, the positive development in the DACH region meant that sales revenues in the second quarter were already almost at the level of the same quarter of the previous year.
The company's earnings situation developed even more positively. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 39.7 percent to EUR 2.8 million (H1 2018: EUR 2.0 million) due to the efficiency measures introduced in the previous quarters. The EBITDA margin increased accordingly from 19.6 to 28.6 percent. Considering the second quarter separately, the increase in profitability was even higher. Here, EBITDA increased by 61.2 percent to EUR 1.5 million, which corresponds to a margin increase from 18.2 to 30.0 percent. Net profit for the first half of the year doubled from EUR 0.5 million to EUR 1.0 million, while on a quarterly basis it even increased by 148.4 percent to EUR 0.6 million.
"Since the end of the first quarter, we have been investing more heavily in our brand again in metropolitan areas in the DACH region, including widespread outdoor advertising, and are increasingly addressing expectant parents," explains Dr. Wolfgang Knirsch, CEO of Vita 34 AG. "At the same time, we now have our cost structure so well under control that we are steadily becoming more profitable in our operating business and can thus also use our own funds for strategic investments in the future."
Operating cash flow increased by 44.4 percent to EUR 2.4 million in the first half of the year (H1 2018: EUR 1.6 million). Cash and cash equivalents amounted to EUR 7.3 million as of 30 June, up 4.8 percent on the end of the previous year (31 December 2018: EUR 7.0 million).
Overall, the key performance indicators for the first half of 2019 are as follows:
|in EUR '000
|EBITDA margin [%]
|Earnings per share [EUR]
|Operating cash flow
|Cash & cash equivalents (vs. ultimo 2018)
"The business development in the second quarter in particular shows that our business model is developing largely independently of economic cycles," emphasizes Falk Neukirch, CFO of Vita 34 AG. "This and the fact that we have now achieved a high level of profitability and cash flow strength are ideal prerequisites for focusing increasingly on strategic issues. This also includes the development of new products."
For further information on current business developments, the Management Board and Investor Relations are available for further discussions at any time. Further information on the company as well as the current company presentation and the complete Interim Report can be found in the Investor Relations section of the Vita 34 AG website at https://www.vita34.de/investor-relations/.
Vita 34 AG
Phone: +49 (0341) 48792 - 40
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. Nursing 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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