EQS-News: Vita 34 significantly increases earnings and operating cash flow in the first quarter

Vita 34 significantly increases earnings and operating cash flow in the first quarter

• Revenues increase by 3.6 percent to EUR 18.6 million
• EBITDA more than quintuples to EUR 1.5 million
• Operating cash flow doubles to EUR 4.0 million
• Outlook for the full year 2024 confirmed

Leipzig, 31 Mai 2024 – Vita 34 AG, the leading cell bank in Europe and the third largest in the world, has made a successful start to the new fiscal year 2024. While the new customer business continues to be challenging against the backdrop of the market environment, business with renewals from existing contracts developed, as expected, much more positively. At the same time, there is a trend towards new customers selecting higher-value product packages.

Revenues amounted to EUR 18.6 million in the reporting period, up 3.6 percent on the previous year (Q1 2023: EUR 17.9 million). The net amount of invoiced services to end consumer business (B2C) increased significantly due to a noticeable rise in demand for contract renewals and, at EUR 18.0 million, was up 13.6 percent on the previous year's level (Q1 2023: EUR 15.9 million). The amount thereof attributable to annually recurring payments totaled EUR 5.7 million (Q1 2023: EUR 5.2 million). "With the start of the new financial year 2024, we have decided to introduce a new key figure in our reporting, which is intended to make our actual corporate development more transparent against the background of the complex accounting in accordance with IFRS 15," explains Jakub Baran, CEO of Vita 34 AG. "The net amount of invoiced services in consumer business (B2C) is intended to give an impression of how our company has developed from a purely operational perspective before the deferral of revenues in accordance with IFRS. We believe the right proportion of annually recurring and prepaying clients is a key factor for the future success of Vita34."

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly year-on-year to EUR 1.5 million (Q1 2023: EUR 0.3 million). In addition to continued cost discipline in the current financial year, the significant percentage increase is mainly due to the special effects that reduced earnings in the same period of the previous year.

"Birth rates in our core markets have remained at a low level so far in 2024," explains CEO Jakub Baran. "However, we have managed to overcompensate for the effect on revenues by increasing prices and encouraging our customers to choose higher-value product packages. In parallel, our location in Dubai, for example, which opened in the fourth quarter of 2023, continues to develop very dynamically."

The key figures for business development are as follows:

The company continues to pay particular attention to cost structures in the areas of administration, marketing and sales. Following a decline in sales costs in the first quarter due to slightly weaker than expected new customer business as well as the increased number of contract renewals, operating cash flow improved significantly to EUR 4.0 million in the reporting period. Cash and cash equivalents decreased by EUR 15.1 million compared to the end of 2023, mainly due to the repayment of credit lines. Overall, the high demand for contract renewals in the first quarter is reflected in the Group's continued solid financial position. In view of the as yet unresolved license situation in the new Cell & Gene Therapies and CDMO business areas, investments in these areas continued to be limited in the first quarter of 2024.

In light of the overall business development in line with expectations in the first quarter, the Management Board confirms its outlook for the year as a whole. Accordingly, the Management Board expects revenues of between EUR 81 and 88 million and EBITDA of between EUR 6.5 and 8.0 million for 2024. The forecast is based on a constant exchange rate of the euro against the Polish zloty and other currencies (HUF, RON, TRY, GBP) compared to 29 April 2024.

The Management Board of Vita 34 AG will be available to institutional investors, analysts and representatives of the press on 4 June at 3:00 p.m. in a video conference to provide additional information on business development. Registration for this is by e-mail via the Investor Relations department (ir@vita34.de).

Contact:
Vita 34 AG
Investor Relations
Phone: +49 (0341) 48792 – 40
Email: ir@vita34.de

Company Profile

Vita 34 was founded in Leipzig in 1997 and today is by far the leading cell bank in Europe and the third largest worldwide. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has since offered the collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissues as a full-service provider for cryopreservation. Due to the expansion of the business model following the merger with PBKM, the company intends to invest in the areas of Cell & 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 about 50 countries have already provided for the health of their families with around one million units of stored biological material at Vita 34.