Vita 34 Increases Revenue by 25 Percent in First Half-Year 2016
Revenue increased by 25 percent as compared with the same period last year
Promising growth markets opened thanks to new cooperation agreements
Vita 34 receives the German medium-sized company TOP 100 innovation prize
Vita 34 AG (WKN A0BL84), the second largest stem cell bank in Europe, successfully expanded its market position in the first half of 2016. The number of deposits stored throughout the group rose to more than 150,000 stem cell deposits.
Thanks to the integration of the companies acquired in 2015, total operating revenue rose by 22 percent to EUR 8.7 million (first half-year 2015: EUR 7.1 million), and revenue increased by 25 percent from some EUR 6.4 million to EUR 8.0 million in the period reported. The integration of the acquired companies shaped profitability in the first half-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 0.9 million were lower than the prior year’s level (first half-year 2015: EUR 1.1 million). Correspondingly, earnings before interest and taxes (EBIT) decreased to EUR 0.3 million (first half-year 2015: EUR 0.6 million). In the implementation of its growth strategy, Vita 34 pursued internationalization of business activities in a targeted manner. Thanks to new cooperation agreements with companies in Dubai and Lebanon, Vita 34 is now also present in the Middle East. Moreover, the company is active in Norway, a high birth rate country with great growth and income potential, via its subsidiary StemCare ApS.
Dr. André Gerth, CEO of Vita 34 AG, commented as follows on the development of business in the first half year 2016: "The integration of the companies acquired in 2015 was completed successfully, and consequently revenue was increased by 25 percent as compared to the same period last year. The integration and restructuring, however, is also associated with increased cost, which will place a burden on our profits in the short term. Thanks to the significant progress made in the integration process, I expect a clear improvement in the EBITDA margin in the medium term. We set the course for this in the second quarter."
Whereas, the EBITDA margin in Q1 2016 was 8.3 percent. This key profitability figure increased to 12.9 percent already in Q2. In the medium term the company has 20 percent as a target.
Moreover, Vita 34 is characterized by a well-developed and sustainably grown culture of innovation. In June, Vita 34 was recognized for its innovation successes and particular innovative force by being awarded the TOP 100 innovation prize. Thus, the company numbers among the most innovative medium-sized companies in Germany.
The complete six-month report 2016 is available for download effective immediately on the website at www.vita34group.de in the "Investor Relations" section.
VITA 34 AG Deutschland
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 tissue are preserved alive at some -190ºC for long periods of time, and can be used if needed in the context of medical treatment. More than 150,000 families are already taking advantage of this offering and have provided for their children with a stem cell deposit at Vita 34.