Vita 34 again achieves double-digit growth in revenues and earnings in the first half of the year

Vita 34 again achieves double-digit growth in revenues and earnings in the first half of the year
– Revenues increase by 13.7 percent to EUR 10.8 million
– Adjusted EBITDA rises disproportionately by 20.3 percent to EUR 3.2 million
– Operating cash flow and liquidity reflect positive business performance

Leipzig, 31 August 2021 – Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), one of the largest cell banks in Europe, continued to grow in the second quarter of 2021. Once again, the targeted marketing and sales measures in the DACH region were a key driver for increasing customer demand.

Revenues increased by 13.7 percent to EUR 10.8 million in the first half of the year (H1 2020: EUR 9.5 million), enabling the company to realize double-digit growth rates for the second quarter in a row. In the second quarter, marketing expenses were again consistently increased further compared to the same quarter of the previous year in order to continue to promote the positive momentum in customer demand in the second half of 2021. “Despite the limitations of COVID-19 on the general economic environment, we managed to grow decently also in the second quarter,” explains Dr. Wolfgang Knirsch, CEO of Vita 34 AG. “Therefore, we remain confident that we will also come through the further course of the pandemic well in the second half of the year.”

Despite increased marketing expenses, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also increased further. Compared to revenues, it increased disproportionately by 20.3 percent to EUR 3.2 million (H1 2020: EUR 2.6 million). This already includes increased personnel costs compared to the previous year, primarily resulting from rising employee numbers in the areas of manufacturing and research & development. “In the second half of the year, we will also incur expenses for the development project Immune Cells and, as planned, will even slightly increase expenses here compared to the first half of the year. Furthermore, we will continue to increase marketing expenses in proportion to the planned improved operational performance and, as far as necessary, the personnel in the manufacturing area” underlines Andreas Schafhirt , CFO of Vita 34.

As expected, unadjusted EBITDA decreased due to costs related to the planned merger with Polski Bank Komórek Macierzystych S.A., Warsaw (“PBKM”). At EUR 2.0 million, it was 20.6 percent below the comparable figure for the previous year (H1 2020: EUR 2.5 million).

The key figures for business development are as follows:

The dynamic business performance also had a positive impact on the company’s liquidity situation. With an increase of 28.3 percent to EUR 2.4 million (H1 2020: EUR 1.8 million), operating cash flow showed similarly strong growth to adjusted EBITDA. This development was positively influenced by a normalization of inventories following the pandemic-related build-up of inventories in the previous year. As a result of increased investments, including in research & development and in property, plant and equipment, as well as the cash outflow due to consultancy costs in connection with the planned merger with PBKM, cash and cash equivalents increased by only 2.7 percent to EUR 10.7 million.

Against the backdrop of the unchanged positive business development in the second quarter of 2021, the Management Board of Vita 34 AG continues to adhere to its forecast for the full fiscal year 2021 (before the planned merger) published in the context of the Annual Report 2020.

Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Phone: +49 (0341) 48792 – 0
Mobile: +49 (0174) 9091190
Email: ingo.middelmenne@vita34.de

Company profile
Vita 34 was founded in 1997 in Leipzig and is today one of the leading cell banks in Europe. 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 and tissue as a full-service provider for cryopreservation. Based on the expansion of the business model in 2019, Vita 34 also intends to offer the storage of immune cells from peripheral blood and stem cells from autologous fat in the future. Endogenous cells are a valuable starting material for medical cell therapy and are kept alive at temperatures around minus 200 degrees Celsius so that they can be used as part of a treatment if required. More than 247,000 customers from more than 20 countries have already provided for their family’s health with a cell depot at Vita 34.