DGAP-Ad-hoc: Vita 34 AG / Key word(s): Forecast
Vita 34 lowers sales and earnings forecast due to IFRS 15 effect and accelerated restructuring measures
29.08.2022 / 23:25 CET/CEST
Disclosure of inside information according to Article 17 of Regulation (EU) No. 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer / publisher is responsible for the content of the notification.
Vita 34 lowers sales and earnings forecast due to IFRS 15 effect and accelerated restructuring measures
Leipzig, August 29, 2022 Vita 34 AG, in close cooperation with its legal and business advisors, managed to reach an agreement today to design your storage contracts with customers in the PBKM subgroup in such a way that they are – similar to the original accounting at PBKM – again can be accounted for over a longer period of time. As of today, the positive effect of this decision amounts to around EUR 9.0 million per year and has an equal impact on group sales and earnings before interest, taxes, depreciation and amortization (EBITDA). It will be taken into account in the contractual regulations with immediate effect.
Due to the nature of Vita 34’s business model, however, contracts do not lead to invoicing after an average of four to six weeks at the earliest, the consensus reached today will have a positive effect on consolidated sales and the company’s earnings from the fourth quarter of 2022, with minor effects on the third Quarter. In its forecast for the full year, however, the company already anticipated this effect from the third quarter, which means that both the estimate for consolidated sales and the expected EBITDA for 2022 were overestimated by EUR 2.5 million.
In addition, the Executive Board decided today to bring forward significant restructuring measures to leverage post-merger synergies against the background of the current market environment to the current 2022 financial year. The location measures relate primarily to the markets of Poland, Portugal, Switzerland and Spain and lead to a one-time special charge on the EBITDA level of EUR -1.5 million.
Against the background of the aforementioned effects and the continued difficult market environment, the Executive Board is adjusting the forecast ranges for consolidated sales to EUR 65 to 72 million (previously: EUR 68 to 75 million) and for EBITDA to -6.0 to -3.0 EUR million (previously: EUR -2 to +1 million).
Notifying person: Dirk Plaga, CFO Vita 34 AG
— End of insider information according to Art. 17 MAR —
Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Telephone: +49 (0341) 48792 – 0
Mobile: +49 (0174) 9091190
Email: [email protected]
Vita 34 was founded in Leipzig in 1997 and is today by far the leading cell bank in Europe and the third largest in the world. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has been offering collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissue as a full-service provider for cryopreservation ever since. Customers from around 50 countries have already taken care of their family’s health with more than 850,000 units of biological materials stored at Vita 34.
08/29/2022 CET/CEST The DGAP distribution services include legal reporting requirements, corporate news/financial news and press releases.
Media archive at http://www.dgap.de