Vita 34 AG / DE000A0BL849

Vita 34 increases revenue and earnings in Q3 2023 and further stabilizes business development

Vita 34 AG / Key word(s): Quarter Results


24.11.2023 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Revenues increased solidly by 11.7 percent to EUR 56.7 million in the first nine months of 2023 Adjusted pricing models and internal efficiency programs provide positive impetus EBITDA further improved versus last year and versus Q2 to EUR 3.6 million Guidance for fiscal year 2023 confirmed Leipzig, 24 November 2023 – Vita 34 AG, the leading cell bank in Europe and the third largest in the world, further improved its revenue and earnings development in the third quarter of 2023. Following signs of stabilization in business development in the second quarter, adjustments to pricing models and the implementation of efficiency programs and integration measures contributed to an increasing stabilization of the trend. At EUR 56.7 million, revenue in the first nine months of 2023 was up 11.7 percent on the previous year (9M 2022: EUR 50.8 million). The company also succeeded in stabilizing and expanding its revenue performance in an environment characterized by persistently weak birth rates also thanks to a product mix with a higher proportion of premium-priced product categories selected by the customers. The price adjustments introduced in the first half of the year to compensate for the effects of inflation also had a positive impact in the third quarter. As in the first half of the year, this increase consisted of positive price effects and positive effects from revenue recognition and accounting in accordance with IFRS 15. “We see reason for cautious optimism about the future. Although birth rates continue to be at a low level and this is unlikely to change quickly, we see dropping inflation in most parts of Europe, which is a good sign for a potential sentiment change among consumers,” explains Jakub Baran, CEO of Vita 34 AG. “We will continue costs optimization by better utilization of our presence in best-cost countries, where skilled workforce meets reasonable price points. In the third quarter, we streamlined some locations in terms of personnel as well as consolidated some production processes.” The Company also continued to stabilize its operating performance in terms of earnings. At EUR 3.6 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were once again significantly higher than in the previous year (9M 2022: EUR -1.6 million). Following the clearly negative earnings performance in 2022, quarterly EBITDA was therefore positive for the third time in a row with significantly increasing momentum in the current fiscal year. Looking at the third quarter separately, EBITDA doubled compared to the previous year. The key figures for business development are as follows:

	IFRS, in EUR ´000	Q3	Q3	9M	9M	9M
		2023	2022	2023	2022	?
	Revenue	20,413	18,655	56,682	50,764	11.7%
	Gross profit	8,939	5,987	21,360	13,409	59.3%
	EBITDA	2,039	1,008	3,590	-1,606	>100%
	EBITDA margin [in %]	10.0	5.4	6.3	-3.2	+9.5PP
	EBIT	-89	-1,111	-2,823	-7,976	64.6%
	Result for the period	-1,606	-386	-5,830	-8,058	27.7%
	Earnings per share [in EUR]	-0.10	-0.02	-0.35	-0.50	30.4%
	Operating cash flow	--	--	4,834	-96	>100%
	Cash & cash equivalents (vs. 31.12.2022)	--	--	10,415	16,290	-36.1%

Against the backdrop of the measures taken with regard to continued cost discipline, the efficiency enhancement programs and the extended integration measures in the Group, cash flow improved further in the third quarter. However, the restructuring of credit facilities also had a significant impact here. Old credit lines were fully repaid and merged into new lines at Group level. At EUR 4.8 million, the operating cash flow for the first nine months again developed very positively and was significantly higher than in the previous year. Due to the structure of the new bundled loan agreements, the Company’s cash and cash equivalents decreased in the third quarter. At EUR 10.4 million, they were 36.1 percent lower than at the end of the previous year (31 December 2022: EUR 16.6 million). In addition, however, the company now has free credit lines amounting to EUR 8.9 million. Furthermore, the payment of the final purchase price tranche from the acquisition of a subsidiary in Turkey resulted in scheduled cash outflows of EUR 1.2 million The Management Board considers business development in the third quarter to be positive overall in view of the continuing challenging environment. The increase in growth momentum at both revenue and earnings level was achieved as expected. The Management Board therefore remains confident to meet expectations for the year as a whole and confirms the outlook for fiscal year 2023.

Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Phone: [phone] - 0
Mobile: [phone]
Email: [e-mail]

Company profile
Vita 34 was founded in Leipzig in 1997 and is today by far the leading cell bank in Europe and the third largest worldwide. As Europe's first private cord blood bank and a pioneer in cell banking, the company has since offered collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissues as a full-service cryopreservation provider. Due to the expansion of its business model following the merger with PBKM, the company plans to invest in cell and gene therapies and CDMO. The body's own cells are a valuable starting material for medical cell therapy and are kept alive in the vapor of liquid nitrogen. Customers from around 50 countries have already ensured the health of their families with more than 930,000 units of stored biological material at Vita 34.

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24.11.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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Language:	English
Company:	Vita 34 AG
	Deutscher Platz 5a
	04103 Leipzig
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.vita34.de
ISIN:	DE000A0BL849
WKN:	A0BL84
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1780825

End of News	EQS News Service

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1780825  24.11.2023 CET/CEST