Vita 34 : Increase in Profitability in Q1 Confirms Positive Growth Outlook 2014

Vita 34 AG: Increase in Profitability in Q1 Confirms Positive Growth Outlook 2014

- Sum of operating income increased to EUR 3.5 million

- Earnings before interest, taxes, depreciation and amortization (EBITDA) up 72 percent in annual comparison; strong EBITDA margin of 18.3 percent

- Earnings before interest and taxes, (EBIT) rose to EUR 0.3 million.

- Positive outlook for 2014: Introduction of umbilical cord tissue storage throughout Germany and in international markets offers potential for revenues and profits

Leipzig, 24 April 2014 - Vita 34 AG (WKN A0BL84), a pioneer in the storage of stem cells from umbilical cord blood and tissue, and a specialist in cryo-preservation, published its financial figures for the first three months of fiscal year 2014 today. The company reported a positive start in the current fiscal year. Vita 34 is continuing the prior year's positive trend with an increased sum of operating profits, significantly higher EBITDA and a positive result for the period.

In the first three months of 2014 the sum of operating profits was EUR 3.5 million, following EUR 3.3 million in the reference time period in 2013. Among other things, the Biotechnology business segment that had been expanded in 2013 contributed to the income from research and development activities, as well as to a positive trend in the financial situation. Revenues were stable EUR 3.2 million (Q1 2013: EUR 3.2 million). In addition, the number of new storages of umbilical cord blood and tissue of 1,659 storages was at the prior year's level (Q1 2013: 1,614 new storages).

At the same time, Vita 34 was successful in increasing profitability. Apart from the Biotechnology business segment, the optimization measures consistently implemented in fiscal year 2013 contributed to this, and also demonstrated an effect in the reporting period. For example, the selling expenses decreased in the first quarter of 2014 to EUR 1.1 million following EUR 1.2 million in the prior year's quarter. The earnings before interest, taxes, depreciation and amortization (EBITDA) were increased in the reporting period to EUR 0.6 million (Q1 2013: EUR 0.3 million). Measured against revenues this is equivalent to a high EBITDA margin of 18.3 percent. The operating profit (EBIT) improved also and was EUR 0.3 million after the first three months of 2014, following EUR 0.1 million at the end of Q1 2013. The period result increased to EUR 204k, after having been negative at EUR -20k the prior year.

Dr. André Gerth, Chairman of the Management Board at Vita 34 AG, was pleased with the result and development of the company: "We have further increased profitability with stable revenues. The strong EBITDA margin of 18.3 percent underscores the profitability of our business activities. We have confirmed our market leadership in the German-speaking countries with the 100,000th storage of a stem cell preparation." For example, Vita 34 was able to celebrate the 100,000th storage of a stem cell preparation, among them the 1,500th storage with a donation option, in Leipzig in March 2014. Moreover, during the reporting period the 26th transplant using a stem cell preparation stored at Vita 34 was conducted. This outstanding application rate of some 43 percent of all therapeutic stem cell applications reported to Cord Blood Europe reflects the high quality of the preparations stored at Vita 34.

Dr. Gerth is optimistic about future development: "During the reporting period we continuously worked towards expanding our market position. Here, the focus lays in particular on moving the storage of umbilical cord tissue in Germany and with our international partners forward. We are now the only stem cell bank in Germany that has a permit not only for the storage of umbilical cord blood, but also umbilical cord tissue. We will consistently use the resulting potential revenues and income."

Accordingly, Vita 34 has applied for permit for collecting tissue with all of the 27 responsible agencies within Germany, in order to enter into contracts for collecting umbilical cord tissue with all partner clinics in Germany. At the end of the reporting period, the corresponding permits had been received from 12 agencies. In addition, Vita 34 received an import license for umbilical cord tissue from Switzerland in accordance with Sec. 72b German Pharmaceuticals Act (AMG) and a collection permit for umbilical cord blood in accordance with Sec. 19 (2) of the Austrian Tissue Safety Act (GSG) in Austria during Q1 2014. Vita 34 has advanced the introduction umbilical cord tissue storage with our respective partners in Slovenia, Romania, Bulgaria, Macedonia and Croatia. The first tissue storages from Switzerland, Macedonia and Bulgaria have already taken place.

In light of the positive development of business, Vita 34 AG confirms the prognosis made for 2014 in the 2013 annual report. This foresees a moderate increase in revenues and an increase in EBITDA to approx. EUR 3.3 million.

The complete interim report for the first three months of 2014 is available for download as of today on the website at www.vita34group.de in the "Investor Relations" section.

Company Profile

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 and tissue. The basis for its successful work is an outstanding position in the technological segment of cryo-preservation. Here, cells and tissues are preserved alive at temperatures around minus 190 degrees Celsius, and can be used if needed in the context of medical treatment. Parents of more than 104,000 children are already taking advantage of this offering and have provided for their children with a stem cell deposit.