Vita 34 returns to growth path in 2023

EQS-News: Vita 34 AG / Key word(s): Annual Results
Vita 34 returns to growth path in 2023

30.04.2024 / 22:51 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Vita 34 returns to growth path in 2023

  * Group revenue increases by 11.8 percent to EUR 77.1 million in
    challenging environment

  * Core markets still characterized by weakness, but bottom appears to have
    been passed

  * EBITDA of EUR 5.6 million significantly improved compared to previous
    year, despite extraordinary one-offs

  * Operating cash flow of EUR 9.2 million almost tripled in comparison to
    the previous year

* Further strengthening of organic growth targeted for 2024

Leipzig, 30 April 2024 - Vita 34 AG, the leading cell bank in Europe and the
third largest in the world, was able to further improve its overall business
development in the final quarter of 2023 and was able to achieve visible
growth at Group level again. At the same time, consistent cost and liquidity
management led to a noticeable improvement in earnings compared to the
previous year.

At EUR 77.1 million, Group revenue increased by 11.8 percent compared to the
previous year (2022: EUR 68.9 million). In an environment that remains
challenging overall and is characterized by declining birth rates, the
company succeeded in achieving organic revenue growth again on a quarterly
basis. While development in Germany and the Middle East was still marked by
pronounced weakness at the end of the year, growth was primarily driven by
positive developments in Hungary, Switzerland, Romania and Turkey, as well
as stabilization in Poland. The number of contract renewals also continued
to develop very positively.

"Overall, we succeeded in holding our own in a persistently difficult
economic environment and compensating for effects of inflation. It is
becoming increasingly apparent that the financial burden on private
households resulting from the rise in inflation and the changed interest
rate environment is easing. There are signs of more leeway for private
consumption again," explains Jakub Baran, CEO of Vita 34 AG. "In addition,
consistent cost and liquidity management has led to our earnings development
being significantly better than in the previous year. Our investments in
newly emerging areas obviously had a negative impact on our earnings in
2023. However, we assume that we will noticeably improve our development in
the CDMO area in 2024. We plan to finance our further investments in Cell
and Gene therapies largely from the available liquidity in our subsidiary
FamiCordTx and from a current project that has already been approved by the
Agency for Medical Research (ABM) in Poland. We are also going to initiate
discussions with new potential investors at FamiCordTx."

At EUR 5.6 million, earnings before interest, taxes, depreciation and
amortization (EBITDA) improved significantly compared to the previous year
(2022: EUR -3.6 million). At the same time, there were a number of
extraordinary charges that the company had already reported in publications.
These primarily include one-off charges for the reduction in the size of the
Management Board, the costs of the capital increase, consulting costs in
connection with internal investigations at a subsidiary and in connection
with the legal dispute against the licensor of the CAR-T technology and an
unexpected charges for the 2022 audit. In total, the extraordinary charges
from the aforementioned items amounted to EUR 1.5 million. The EBITDA margin
in the fourth quarter was therefore also slightly lower than in the third
quarter. However, this development is due to the aforementioned one-off
charges, while the purely operating margin remained at a similar level to
the previous quarter.

The key figures for business development are as follows:

    IFRS, in EUR `000                Q4       Q4      FY       FY     FY
                                   2023     2022    2023     2022      
    Group revenue                20,380   18,177  77,062   68,940  10.4%
    Gross profit                  6,884  -10,674  28,244    2,735  >100%
    EBITDA                        1,980   -1,958   5,569   -3,564  >100%
    EBITDA margin (%)              9.7%   -10.8%    7.2%    -5.2%  >100%
    EBIT                           -298  -19,307  -3,120  -27,283  >100%
    Result for the period         3,797  -19,326  -2,033  -27,384  >100%
    Earnings per share (in EUR)    0.24    -1.22   -0.12    -1.71  >100%
    Operating cash flow           4,320     -186   9,154   -4,486  >100%
    Cash & cash equivalents          --       --  17,416   16,290   6.9%
    (vs. 31 Dec. 2022)

At EUR 9.2 million, operating cash flow was also significantly higher than
in the previous year (2022: EUR -4.5 million). In addition to consistent
liquidity management, the restructuring of credit facilities also had a
significant impact here. Old credit lines were repaid in full and
transferred to new lines at Group level. Cash and cash equivalents increased
by 6.9 percent to EUR 17.5 million compared to the end of 2022.

The Management Board views the Group's performance in the past financial
year, and particularly in the second half of 2023, as a positive sign for
improved business development in the current year 2024. A further slowdown
in inflation, falling interest rates and real wage gains in private
households are likely to lead to a further brightening of the economic
environment. In anticipation of such a development, the Group has already
begun to intensify its investments in marketing and sales again at the end
of 2023. Significant effects from the measures taken are not expected until
the second half of the year though. Overall, however, this should contribute
to a further improvement in the revenue and earnings situation of Vita 34.
Accordingly, the Management Board expects revenues of between EUR 81 und 88
million with EBITDA of between EUR 6.5 and 8.0 million in 2024.

Contact:
Vita 34 AG
Investor Relations
Phone: +49 (0341) 487920
Email: ir@vita34.de

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 about 1 million units of stored biological material
at Vita 34.


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30.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        Vita 34 AG
                   Deutscher Platz 5a
                   04103 Leipzig
                   Germany
   Phone:          +49(0341)48792-40
   Fax:            +49(0341)48792-39
   E-mail:         ir@vita34.de
   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:    1893341

End of News EQS News Service
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1893341 30.04.2024 CET/CEST