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Vita 34 AG: Positive Development of Business in the First Nine Months and Increase in 2013 Annual Forecast
- Earnings before interest, taxes, depreciation and amortization (EBITDA) rises to EUR 1.5 million; high EBITDA margin of 15.5%
- Clearly positive EBIT of EUR 0.7 million thanks to consistent implementation of cost-optimization measures
- Ongoing positive business development expected thanks to internationalization and expanded product range
Vita 34 AG (WKN A0BL84), Europe's oldest private stem cell bank and a specialist in cryo-preservation, published its financial figures as of 30 September 2013 today. Altogether, the company was able to continue the positive trend of the prior months in the third quarter. Diversification of the business model has had a stabilizing effect on the revenue trend. At the same time, the consistent implementation of cost reduction measures has led to an increase in the profitability of Vita 34.
In the first nine months, Vita 34 was able to mainly compensate for a dip in revenue in the Stem Cell Storage business segment caused by slightly declining storage figures with revenues from the Biotechnology business segment newly established in 2012. Correspondingly, the company posted revenues in the reporting period totaling EUR 9.9 million, which were, therefore, roughly at the same level as the prior year (prior year: EUR 10.1 million). In addition, the cost reduction measures consistently implemented in the previous year had a significant effect on increasing profitability: The selling expenses were reduced by 20.8% and administrative expenses by 12.6% in an annual comparison. As a consequence of this, the earnings before taxes, interest, depreciation and amortization (EBITDA) increased significantly in the first nine months of 2013 to EUR 1.5 million, after EBITDA had been only EUR 0.2 million in the reference period of the prior year. Measured against revenues, this is equivalent to a high EBITDA margin of 15.5%. The operating profit (EBIT) also rose significantly and was EUR 0.7 million in the reporting period (prior year: EUR -0.6 million). The group result increased to EUR 0.3 million, following EUR -0.5 million in the first nine months of 2012.
Dr. André Gerth, Chairman of the Management Board of Vita 34 AG, was pleased with the result earned: "In the past years we have successfully developed into the largest stem cell bank in the German-speaking countries, and have strategically diversified our business model with two business segments, Stem Cell Storage and Biotechnology. Despite the current reticence with regard to stem cell storage, Vita 34 can look back on a positive commercial development in the first nine months of 2013. We have been successful in continuously increasing our profitability and again delivering a positive overall result. Thus, we have clearly achieved our goal," declared Dr. Gerth. Strategically, Dr. Gerth sees Vita 34 as very well positioned: "We have set a decisive course for a positive development of business in the future. We have pressed ahead with our activities on the international market, and significantly expanded our product range with "VitaPlusNabelschnur" [VitaPlusCord]. It can be assumed that due to this new sales, profit and revenue potential will result, which Vita 34 will use for expanding its leading position in the storage of umbilical cord blood and tissue."
After the company had received a permit for the processing, cryo-preservation and storage of umbilical cord tissue according to §20c German Pharmaceuticals Act (AMG) in May 2013, at the end of Q3 the company was granted a collection permit for umbilical cord tissue according to §20b AMG for clinics in Germany. Thus, Vita 34 is the first and only private stem cell bank in Germany that is permitted to store umbilical cord blood and tissue according to Good Manufacturing Practice (GMP) guidelines and, thus, Vita 34 is following the international trend towards applications of mesenchymal stem cells. The expansion strategy outside of Germany was also successfully advanced: Via a cooperative venture with the Serbian company Bio Save, Vita 34 further expanded its presence in Q3 2013 to Romania and Croatia, and is working on two new, innovative environmental projects in Brazil and Vietnam in the Biotechnology business segment.
In light of the very positive development of business in the first three quarters of the current fiscal year, the company is solidifying its prognosis for the year. The company is confident of being able to earn a positive EBITDA of at least EUR 1.5 million in fiscal year 2013.
The complete 9-month report 2013 is available for download as of today on the website at www.vita34group.de in the "Investor Relations" section.
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