Quarterly Report • May 11, 2020
Quarterly Report
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03 About va-Q-tec
04 Significant events in the reporting period
va-Q-tec is a pioneer in highly efficient products and solutions in the area of thermal insulation (super heat insulation) and temperature-controlled logistics (TempChain logistics). The company develops, produces and markets vacuum insulation panels (VIPs) as well as phase change materials (PCMs) for reliable and energy-efficient temperature controlling. In addition, va-Q-tec produces passive thermal packaging systems (containers and boxes) through optimally integrating VIPs and PCMs – these maintain constant inner temperatures, depending on type, for up to 240 hours without external energy input, irrespective of surrounding temperatures, whether extremely low, or high. In order to implement temperature-sensitive logistics chains, va-Q-tec – within a global partner network – operates a fleet of rental containers and boxes meeting high thermal protection standards, such as in the case of constant-temperature transports in the pharmaceuticals industry. Along with Healthcare & Logistics as the main market, va-Q-tec addresses the following further markets: Appliances & Food, Technics & Industry, Building and Mobility. The high-growth company, which was founded in 2001, is based in Würzburg, Germany.
Further information: www.va-q-tec.com
Konzernanhang
Konzernabschluss
Konzernlagebericht
Konzernanhang
Konzernabschluss
Konzernlagebericht
The CoVid-19 crisis impressively demonstrates the importance of stable and secure supply chains. This is particularly true for the pharmaceutical industry: after all, the reliable transport of numerous drugs requires reliable transport solutions with stable temperatures. va-Q-tec generated 76% of its revenues in Q1 2020 in the healthcare sector, and for the coming years continues to identify particularly great potential, especially in this sector, for TempChain logistics, i.e. safe transport solutions for temperature-sensitive products such as medications, test kits, vaccines etc. With its TempChain portfolio, va-Q-tec can precisely meet temperature stability requirements, thereby contributing significantly to product safety and quality.
With its temperature controlled transport solutions, va-Q-tec is actively contributing to the fight against the coronavirus: with the help of va-Q-tec solutions, several million Covid-19 test kits have already been shipped worldwide by air freight, e.g. from South Korea via Frankfurt to Brazil, and from Singapore to Mongolia or Sri Lanka. Treating ill people as quickly as possible in a targeted manner necessitates fast and reliable tests in large numbers, and worldwide. Test kits are scarce and therefore have to be transported in a thermically stable manner without quality or even product loss. Fast and safe transports by air freight are consequently necessary in order to deliver tests to where they are urgently needed. Many of the test kits may typically be transported at a maximum temperature of -20 °C. Thanks to their unique and patented technology, va-Q-tec rental containers are able to maintain a constant temperature between -15 °C and -25 °C for up to 10 days without energy supply, and are therefore particularly suitable for the safe transport of test kits.
Overall, business performance in the first quarter of 2020 was encouraging thanks to our highly sought-after product and service portfolio. The company dynamic revenue growth continued with a 15% increase in revenue.
va-Q-tec's Services business, which comprises the container and box rental business for the transport of temperature sensitive goods mainly from the pharmaceutical and biotech sector, recorded an increase of 25% to kEUR 8,152 in Q1 2020 compared to Q1 2019 (kEUR 6,535). Overall, va-Q-tec benefited from a significant expansion of its customer base. The expansion of the Services division will continue in the future and is considered a key growth factor for va-Q-tec.
In the Systems division (thermal packaging), revenues grew by 91% year-on-year, from kEUR 2,491 to kEUR 4,761. Of particular significance for va-Q-tec in Q1 2020 was the major order from a leading Scandinavian pharmaceutical distributor and logistics company for several thousand thermal boxes based on va-Q-med® technology. For this order, the va-Q-tec applications team additionally adapted the boxes to customer requirements for this special application: in order to integrate the thermal packaging into local operating procedures and, above all, to be able to utilize it in the severe Scandinavian winters without problems, modifications had to be made to the thermal design. va-Q-med® technology ensures reliably constant temperatures during drug distribution, so that customers in Finland and Sweden receive temperature-sensitive drugs in top quality.
This order forms part of a growing number of last-mile projects in Germany (kohlpharma), Switzerland (Swiss Post), Singapore, and many other countries, and underscores the international recognition for va-Q-tec's thermal expertise and customized solutions. The "last mile" – the last mile from the wholesaler to the pharmacy, or from the (online) pharmacy directly to the patient – presents suppliers worldwide with major challenges. The TempChain required for drug logistics must be stringently adhered to and documented, in order to ensure that medications remain effective. va-Q-tec's innovative transport packaging offers a considerably safer, cost- and resource-saving alternative to conventional systems.
Konzernanhang
Konzernabschluss
Konzernlagebericht
In the Products division (sale of vacuum insulation panels and phase change materials), revenues of kEUR 4,209 were down compared with the prior-year basis (previous year: kEUR 5,832). Firstly, CoVid-19-related production interruptions in customers' production plants towards the end of Q1 2020 had a negative impact on va-Q-tec's business. Secondly, since 2019 va Q-tec's customers have been experiencing increasing competitive pressure from Asia and Eastern Europe in their consumer markets for refrigerators and freezers. Accordingly, revenues in this division fell more sharply than planned at the start of the year. In the second half of 2020, va-Q-tec expects catch-up effects in the sale of vacuum insulation panels, but does not expect a return to the previous year's level.
Compared to the same quarter of the previous year, earnings before interest, tax, depreciation and amortization (EBITDA) increased by 27% from kEUR 2,225 to kEUR 2,815. The margin thereby rose from 13% to 14% in terms of total income, and from 15% to 16% in terms of revenues.
Although the actual macroeconomic consequences due to CoVid-19 are still uncertain, va-Q-tec is still well on track in 2020: despite CoVid-19 effects, the Management Board continues to expect moderate to medium-strong revenue growth with a constant EBITDA margin. The very high revenue share from the healthcare sector, in particular, contributes in this context. The healthcare industry is expected to be significantly less affected by CoVid-19 than other sectors of the economy.
The following overview presents the main items of the income statement of the va-Q-tec Group in each case in comparison with the previous year's quarter.
| kEUR unless stated otherwise |
Q1 2020 (IFRS) | Q1 2019 (IFRS) | Δ 20/19 |
|---|---|---|---|
| Revenues | 17,587 | 15,236 | +15% |
| Total income | 20,375 | 16,845 | +21% |
| Cost of materials and services | -8,377 | -6,646 | +26% |
| Gross profit | 11,998 | 10,199 | +18% |
| Gross margin | 59% | 61% | |
| Personnel expenses | -6,209 | -5,375 | +16% |
| Other operating expenses | -2,974 | -2,599 | +14% |
| EBITDA | 2,815 | 2,225 | +27% |
| EBITDA margin | 14% | 13% | |
| Depreciation, amortisation and impairment losses |
-2,984 | -2,900 | +3% |
| EBIT | -169 | -675 | |
| EBIT margin | -1% | -4% | |
| Result from equity accounted investments |
0 | -48 | |
| Net financial result | -270 | -273 | |
| EBT | -439 | -996 | |
| Number of employees | 493 | 452 | +9% |
In Q1 2020, va-Q-tec grew its revenue by 15% compared with Q1 2019 to kEUR 17,587. Revenue growth was generated by the Services division ("Serviced Rental" of boxes and containers) and the Systems division (sale of thermal packaging systems). By contrast, revenues in the Products division decreased
| kEUR | Q1 2020 | Q1 2019 | Δ 20/19 |
|---|---|---|---|
| Products | 4,209 | 5,832 | -28% |
| Systems | 4,761 | 2,491 | +91% |
| Services | 8,152 | 6,535 | +25% |
An die Aktionäre
Konzernanhang
Konzernabschluss
An die Aktionäre
Konzernanhang
Konzernabschluss
In the Systems division (sales of thermal packaging), revenues increased by kEUR 2,270, from kEUR 2,491 in the previous year to kEUR 4,761 (+91%). The Group generated revenues of kEUR 8,152 with Services ("Serviced Rental" of thermal packaging), compared with kEUR 6,535 million in the prior-year period, which is equivalent to an increase of kEUR 1,617 (≙ +25%). Business with Products (sales of vacuum insulation panels) decreased by kEUR 1,623 (-28%) in the reporting period, from kEUR 5,832 to kEUR 4,209, which is attributable to the CoVid-19 factory closures described above on the customer side and the generally growing intensity of competition in end-markets for refrigerators. All in all, this means that, despite the adverse macroeconomic environment, we have made a good start to the 2020 financial year. The healthcare area, which is reflected in the Systems and Services businesses, currently accounts for 76% of revenues (previous year: 60%).
Total income reported an increase of 21% to kEUR 20,375 (previous year: kEUR 16,845). The growth derives mainly from higher own work capitalized, including the continued expansion of the self-produced container and box fleets.
The cost of materials and purchased services rose by 26% from kEUR 6,646 in the previous year to kEUR 8,377. This increase is primarily due to the growth in the cost of services purchased as part of the cost of materials, which in turn mainly reflects the repositioning of empty airfreight containers necessitated in the course of the strong business expansion in this area and which has become much more expensive due to CoVid-19. Overall, the cost of materials ratio moved from 39% in the previous year to 41% in Q1 2020. In parallel, the gross profit ratio decreased to 59% in Q1 2020 (previous year: 61%).
Personnel expenses in Q1 2020 were up by kEUR 834 compared with the prior-year period, rising from kEUR 5,375 to kEUR 6,209 (+16%). Apart from usual wage and salary increases, the rise is mainly due to newly hired employees and the full cost effectiveness of staff recruited in the course of 2019.
In line with the general business growth, other operating expenses rose by kEUR 375, from kEUR 2,599 in the previous year's period to kEUR 2,974 in Q1 2020 (+14%). The ratio of other operating expenses to total income remained nearly unchanged at 15% (previous year: 15%).
As a consequence of the disproportionately low increase in expenses in relation to total income, earnings before interest, tax, depreciation and amortization (EBITDA) were up by kEUR 590 from kEUR 2,225 in the previous year to kEUR 2,815. This corresponds to an improvement of 27%, and an improved EBITDA margin of 14% in Q1 2020 in relation to total income (previous year: 13%) and 16% in relation to revenues (previous year: 15%).
Depreciation, amortization and impairment losses reported a slight increase to kEUR 2,984 (previous year: kEUR 2,900). Consequently, earnings before interest and tax (EBIT) also improved by kEUR 506 to kEUR -169 (previous year: kEUR -675).
Finance expenses remained almost constant compared to the same period of the previous year, at kEUR 270 in Q1 2020 (previous year: kEUR 273).
In Q1 2020, the company achieved a significantly improved result before tax (EBIT) of kEUR -439 (previous year: kEUR -996).
An die Aktionäre
Konzernanhang
Konzernabschluss
The reporting segments performed as follows in Q1 2020:
German reporting segment (va-Q-tec AG)
| kEUR unless stated otherwise |
Q1 2020 | Q1 2019 | Δ 20/19 |
|---|---|---|---|
| Revenues | 12,459 | 9,972 | +25% |
| EBITDA | 889 | -37 | |
| Number of employees | 421 | 390 | +31 |
In the German reporting segment (va-Q-tec AG), revenues grew from kEUR 9,972 in the previous year to kEUR 12,459 in Q1 2020 (+25%). The increase is mainly thanks to business growth in the Systems division and higher investments in self-produced containers for the global fleet. The same reasons apply to the positive development of EBITDA that increased significantly to kEUR 889 (previous year: kEUR -37). The number of employees stood at 421 at the end of the first quarter (previous year: 390).
UK reporting segment (va-Q-tec UK Ltd)
| kEUR unless stated otherwise |
Q1 2020 | Q1 2019 | Δ 20/19 |
|---|---|---|---|
| Revenues | 7,397 | 5,660 | +31% |
| EBITDA | 2,547 | 1,741 | +46% |
| Number of employees | 46 | 40 | +6 |
The UK reporting segment comprises mainly the rental of temperature-controlled containers for the global pharmaceuticals industry. Revenues in this segment reported a further significant increase in Q1 2020 of kEUR 1,737 ( +31%) from kEUR 5,660 in the previous year to kEUR 7,397. The UK reporting segment benefited from a significant broadening of its customer base. EBITDA in this segment increased by 46% year-on-year from kEUR 1,741 in Q1 2019 to kEUR 2,547 in Q1 2020. Thus, an EBITDA ratio of 34,4% was achieved (previous year: 30,8%). The number of employees rose compared with the previous year's reporting date to 46 (previous year: 40).
An die Aktionäre
Konzernanhang
Konzernabschluss
Other reporting segment
| kEUR unless stated otherwise |
Q1 2020 | Q1 2019 | Δ 20/19 |
|---|---|---|---|
| Revenues | 1,886 | 1,647 | +15% |
| EBITDA | -93 | -64 | |
| Number of employees | 26 | 22 | +4 |
The subsidiaries in Singapore, Korea, Switzerland, Japan and the USA, which together form the Other reporting segment , also contributed to the increase in revenues. This was mainly thanks to the significant growth in own revenues in the regions. The subsidiaries in the USA and Switzerland have performed particularly well and are now making substantial revenue contributions. EBITDA amounted to kEUR -93 (previous year: kEUR -64). The number of staff stood at 26 as of the end of Q1 2020 (previous year: 22).
Property, plant and equipment decreased slightly, by 1%, to kEUR 68,272 as of 31 March 2020, compared with kEUR 68,879 as of 31 December 2019.
By contrast, current assets increased by kEUR 3,355 to kEUR 30,367 as of 31 March 2020 due to the rise in liquid assets (31 December 2019: kEUR 27,012).
Consolidated equity reduced slightly, by kEUR 547 compared to 31 December 2019, to kEUR 42,160, with the equity ratio thereby remaining almost unchanged at 39% as of 31 March 2020.
Non-current bank borrowings rose slightly to kEUR 23,863 compared with 31 December 2019 due to the scheduled raising of long-term financing and a change in the form of financing for the container fleet from saleand-finance-leaseback financing to loans. At the same time, current bank borrowings rose by kEUR 1,977 from kEUR 11,404 to kEUR 13,381.
Current liabilities and provisions amounted to kEUR 31,334 as of 31 March 2020, corresponding to 29% of total equity and liabilities (31 December 2019: kEUR 28,289, 27%). The Group's non-current liabilities and provisions amounted to kEUR 35,051 as of 31 March 2020. This corresponds to 32% of total equity and liabilities (31 December 2019: kEUR 34,793, 33%). Trade payables totaled kEUR 5,330 as of 31 March 2020, compared with kEUR 4,485 as of 31 December 2019.
An die Aktionäre
Konzernanhang
Konzernabschluss
Net cash flow from operating activities including changes in working capital improved significantly in Q1 2020, by kEUR 2,398 to kEUR 1,489 (previous year: kEUR -909). Before working capital changes, va-Q-tec generated a positive cash flow from operating activities of kEUR 2,016 as of the balance sheet date, compared with kEUR 505 in Q1 2019.
Cash flow from investing activities changed from kEUR -1,328 to kEUR -2,119. Here, payments for the purchase of property, plant and equipment reported a slight increase from kEUR -1,372 to kEUR -1,831. While especially the investments already realized in 2017 and 2018 form the basis for the further expansion of the company towards a revenue level of EUR 100 million, at the same time the company has had to invest more at short notice in selfproduced containers for the global fleet. The main reason for this was higher global demand for the transport of healthcare products in va-Q-tec containers as a direct or indirect result of the CoVid-19 pandemic.
Overall, va-Q-tec's liquidity as of 31 March 2020 with a bank balance totalling kEUR 9,172 plus open credit lines and further financing options is satisfactory against the background of the positive operative liquidity trend.
| kEUR | Q1 2020 | Q1 2019 |
|---|---|---|
| Revenues | 17,587 | 15,236 |
| Changes in inventories | 19 | 124 |
| Work performed by the company and capitalised | 1,639 | 429 |
| Other operating income | 1,130 | 1,056 |
| Total income | 20,375 | 16,845 |
| Cost of materials and services | -8,377 | -6,646 |
| Gross profit | 11,998 | 10,199 |
| Personnel expenses | -6,209 | -5,375 |
| Other operating expenses | -2,974 | -2,599 |
| EBITDA | 2,815 | 2,225 |
| Depreciation, amortisation and impairment losses | -2,984 | -2,900 |
| Earnings before interest and tax (EBIT) | -169 | -675 |
| Results from equity accounted investments | 0 | -48 |
| Financial income | 3 | 3 |
| Financial expenses | -273 | -276 |
| Net financial result | -270 | -273 |
| Earnings before tax (EBT) | -439 | -996 |
| Income tax | -96 | -133 |
| Net income | -535 | -1,129 |
| Consolidated net income attributable to owners of va-Q-tec AG | -535 | -1,129 |
| Earnings per share – basic/diluted in EUR | -0,04 | -0,09 |
Konzernlagebericht
An die Aktionäre
Konzernanhang
Konzernlagebericht
An die Aktionäre
Konzernanhang
| kEUR | Q1 2020 | Q1 2019 |
|---|---|---|
| Net income | -535 | -1,129 |
| Consolidated other comprehensive income | ||
| Currency translation differences | -13 | -3 |
| Total other comprehensive income that will be reclassified to profit or loss | -13 | -3 |
| Consolidated total comprehensive income | -548 | -1,132 |
| Consolidated total comprehensive income attributable to owners of va-Q-tec AG |
-548 | -1,132 |
An die Aktionäre
Assets
| kEUR | 31/03/2020 | 31/12/2019 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 2,008 | 2,233 |
| Property, plant and equipment | 68,272 | 68,879 |
| Investment property | 1,614 | 1,614 |
| Contract assets | 174 | 158 |
| Financial assets | 2,475 | 2,474 |
| Other non-financial assets | 1,408 | 1,100 |
| Deferred tax assets | 2,227 | 2,319 |
| Total non-current assets | 78,178 | 78,777 |
| Current assets | ||
| Inventories | 10,953 | 10,676 |
| Trade receivables | 7,533 | 6,666 |
| Other financial assets | 908 | 586 |
| Tax assets | 221 | 230 |
| Other non-financial assets | 1,580 | 1,364 |
| Cash and cash equivalents | 9,172 | 7,490 |
| Total current assets | 30,367 | 27,012 |
| Total assets | 108,545 | 105,789 |
Konzernlagebericht
Konzernanhang
Konzernlagebericht
An die Aktionäre
Konzernanhang
Equity and liabilities
| kEUR | 31/03/2020 | 31/12/2019 |
|---|---|---|
| Equity | ||
| Issued share capital | 13,090 | 13,090 |
| Treasury shares | -54 | -54 |
| Additional paid-in capital | 46,158 | 46,158 |
| Consolidated total other comprehensive income | -38 | -26 |
| Retained earnings | -16,996 | -16,461 |
| Total equity | 42,160 | 42,707 |
| Non-current liabilities | ||
| Provisions | 74 | 73 |
| Bank borrowings | 23,863 | 22,840 |
| Other financial liabilities | 5,079 | 5,333 |
| Other non-financial liabilities | 6,035 | 6,547 |
| Total non-current liabilities | 35,051 | 34,793 |
| Current liabilities | ||
| Provisions | 187 | 130 |
| Bank borrowings | 13,381 | 11,404 |
| Other financial liabilities | 7,001 | 6,867 |
| Liabilities from contracts with customers | 22 | 308 |
| Trade payables | 5,330 | 4,485 |
| Tax liabilities | 39 | 42 |
| Other non-financial liabilities | 5,374 | 5,053 |
| Total current liabilities | 31,334 | 28,289 |
| Total Equity and liabilities | 108,545 | 105,789 |
| kEUR | Q1 2020 | Q1 2019 |
|---|---|---|
| Cash flow from operating activities | ||
| Net income | -534 | -1,129 |
| Current income taxes recognised income statement | -3 | 18 |
| Income taxes paid | - | -17 |
| Net finance costs recognised income statement | 270 | 273 |
| Interest paid | -288 | -264 |
| Depreciation on contract assets | 4 | 4 |
| Non-cash losses from equity accounted investments | - | 48 |
| Depreciation, amortisation and impairment losses | 2.964 | 2,880 |
| Gain/loss from disposal of non-current assets | -72 | -72 |
| Change in other assets | -423 | -438 |
| Change in other liabilities | 872 | -204 |
| Change in provisions | 57 | 102 |
| Other non-cash expenses or income | -831 | -696 |
| Cash flow from operating activities before working capital changes | 2.016 | 505 |
| Change in inventories | -165 | -387 |
| Change in trade receivables | -845 | -1,526 |
| Change in trade payables | 483 | 499 |
| Net cash flow from operating activities | 1.489 | -909 |
| Cash flow from investing activities | ||
| Payments for investments in intangible assets | -339 | -64 |
| Proceeds from disposal of property, plant and equipment | 72 | 112 |
| Payments for investments in property, plant and equipment | -1,831 | -1,372 |
| Payments for investments in contract assets | -21 | -4 |
| Net cash flow from investing activities | -2,119 | -1,328 |
Konzernlagebericht
An die Aktionäre
Konzernanhang
| kEUR | Q1 2020 | Q1 2019 |
|---|---|---|
| Cash flow from financing activities | ||
| Proceeds from bank loans | 5,504 | 1,302 |
| Repayments of bank loans | -2,506 | -2,582 |
| Payments for finance lease liabilities | -763 | -763 |
| Net cash flow from financing activities | 2,273 | -2,043 |
| Change in cash and cash equivalents before exchange rate effects | 1,643 | -4,280 |
| Effect of exchange rate changes on cash and cash equivalents | 39 | 6 |
| Net change in cash and cash equivalents | -4,274 | |
| Cash and cash equivalents at start of period | 7,490 | 12,154 |
| Cash and cash equivalents at end of period | 9,172 | 7,880 |
Konzernlagebericht
An die Aktionäre
Konzernanhang
va-Q-tec AG
Alfred-Nobel-Straße 33 97080 Würzburg Germany
Tel.: +49 (0)931 35 94 2-0 Fax: +49 (0)931 35 94 2-10
E-mail: [email protected] www.va-q-tec.com
va-Q-tec AG Felix Rau Tel.: +49 (0)931 35 94 2-2973 E-mail: [email protected]
Unter den Eichen 7 65195 Wiesbaden
Tel.: +49 (0)611 20 58 55-0 Fax: +49 (0)611 20 85 55-66
E-mail: [email protected] www.cometis.de
va-Q-tec AG
Alfred-Nobel-Straße 33 97080 Würzburg
Tel.: +49 (0)931 35 94 2-0 Fax: +49 (0)931 35 94 2-10
E-mail: [email protected] www.va-q-tec.com
PICTURE CREDIT va-Q-tec AG
| 13/08/2020 | Publication half-yearly financial report |
|---|---|
| 14/08/2020 | Indicative date for the Annual General Meeting |
| 12/11/2020 | Publication quarterly statement (call-date Q3) |
This report can include forward-looking statements based on current assumptions and forecasts of the management of va-Q-tec AG. Such statements are subject to risks and uncertainties. These and other factors can lead the company's actual results, financial position, development, or performance to differ significantly from the estimates provided here. The company assumes no obligation of any kind to update such forward-looking statements and adjust them to future events or developments.
Alfred-Nobel-Straße 33 97080 Würzburg Germany
Tel.: +49 (0)931 35 942 0 Fax: +49 (0)931 35 942 10
E-mail: [email protected] www.va-q-tec.com
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