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va-Q-tec AG
Earnings Release • May 31, 2024
459_10-q_2024-05-31_15f8ba64-b6ce-4612-b1a6-63a7d576b61e.pdf
Earnings Release
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Q1 2024 Report
va-Q-tec reports on business performance in the first three months of 2024
Würzburg, 31 May 2024 va-Q-tec AG, a pioneer of highly efficient products and solutions in the area of thermal insulation (so-called super thermal insulation) and temperaturecontrolled supply chains (so-called TempChain logistics), reports a 6 % year-on-year reduction in revenues to EUR 25.7 million in the first quarter of 2024 (Q1 2023: EUR 27.2 million). In an economic environment in Germany and Europe that continues to stagnate and is highly unsettled by energy policy in the heating and air conditioning systems area, numerous customers of va-Q-tec AG are reporting lower levels of business activity. This is directly reflected in the revenue growth reported by va-Q-tec AG. In this context, the company has taken considerable measures to reduce personnel costs and other operating expenses worldwide in order to adjust the cost structure to reflect the lower revenue and earnings expectations, and in order to significantly enhance profitability. These measures were already exerting a very positive effect in the first quarter of 2024. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the first quarter of 2024 amounted to EUR 5.2 million, significantly higher than in the previous year (Q1 2023: EUR 1.8 million), and equivalent to an adjusted EBITDA margin of 17 % in relation to total income and of 20 % in relation to revenue. Both of these margins stood at 6 % in the same period of the previous year.
| Q1 | ||
|---|---|---|
| kEUR | Q1 2024 | 2023 |
| Revenues | 25,668 | 27,177 |
| Total income | 30,080 | 31,165 |
| Adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA) | 5,205 | 1,765 |
| Adjusted EBITDA margin on total income | 17 % | 6 % |
| Adjusted EBITDA margin on revenues | 20 % | 6 % |
The three business divisions of va-Q-tec AG, Services, Systems and Products, report the following trends: the Services division, which comprises the container and box rental business for the transport of temperature-sensitive goods, mainly from the pharmaceutical and biotech sectors, recorded year-on-year constant revenues of kEUR 12.2 in the first quarter of 2024. With revenues of EUR 7.5 million in the first quarter of 2024, the Systems division (sale of thermal packaging systems) also remained almost constant (-1 %) compared to the previous year (Q1 2023: EUR 7.6 million). By contrast, the Products division (sales of vacuum insulation panels and phase change materials) recorded a more significant year-on-year reduction in revenues of 17 % to EUR 5.8 million in the first quarter of 2024 (Q1 2023: EUR 7.0 million).
At kEUR -3,138, operating cash flow in the first quarter of 2024 was kEUR 618 lower than in the same period of the previous year (Q1 2023: kEUR -2,522). Adjusted for the one-off costs for the measures to enhance profitability as well as the transaction costs of kEUR 4,229 in the first quarter of 2024, operating cash flow would have been positive at kEUR 1,091 in the first
quarter of 2024 despite a significant increase in working capital (Q1 2023: kEUR 1,775). Further, less the cash flow from investing activities, it would have led to a slightly positive free cash flow of kEUR 164, whereas free cash flow in the same period of the previous year was still negative at kEUR -410.
Consolidated income statement (IFRS | unaudited)
| kEUR | Q1 2024 | Q1 2023 |
|---|---|---|
| Revenues | 25,668 | 27,177 |
| Change in inventories | 2,438 | 1,106 |
| Work performed by the company and capitalized | 676 | 1,378 |
| Other operating income | 1,296 | 1,504 |
| Total income | 30,080 | 31,165 |
| Cost of materials (including purchased services) | -12,533 | -13,253 |
| Gross profit | 17,547 | 17,912 |
| Personnel expenses | -10,423 | -9,932 |
| Other operating expenses | -5,465 | -7,328 |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,659 | 652 |
| Depreciation, amortization and impairment losses | -4,287 | -3,659 |
| Operating result (EBIT) | -2,628 | -3,007 |
| Finance income | 9 | 17 |
| Finance expenses | -876 | -796 |
| Net financial result | -867 | -779 |
| Earnings before tax (EBT) | -3,494 | -3,786 |
| Income tax | 22 | -303 |
| Consolidated net result for the period | -3,472 | -4,089 |
Consolidated statement of financial position (IFRS | unaudited)
Assets
| kEUR | 31/03/2024 | 31/12/2023 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 5,285 | 5,455 |
| Property, plant and equipment | 75,360 | 77,943 |
| Investment property | 1,020 | 1,020 |
| Contract assets | 135 | 136 |
| Other financial assets | 6,977 | 8,616 |
| Other non-financial assets | 2,005 | 1,824 |
| Deferred tax assets | 1,863 | 1,372 |
| Total non-current assets | 92,645 | 96,366 |
| Current assets | ||
| Inventories | 18,296 | 16,761 |
| Trade receivables | 9,591 | 8,161 |
| Other financial assets | 2,514 | 2,086 |
| Current tax assets | 181 | 164 |
| Other non-financial assets | 4,440 | 2,495 |
| Cash and cash equivalents | 12,179 | 17,090 |
| Total current assets | 47,200 | 46,757 |
| Total assets | 139,846 | 143,123 |
Consolidated statement of financial position (IFRS | unaudited)
Equity and liabilities
| kEUR | 31/03/2024 | 31/12/2023 |
|---|---|---|
| Equity | ||
| Issued share capital | 14,757 | 14,757 |
| Treasury shares | -54 | -54 |
| Additional paid-in capital | 87,557 | 87,557 |
| Cumulative other comprehensive income | -97 | 335 |
| Retained earnings | -55,169 | -51,696 |
| Total equity | 46,994 | 50,899 |
| Non-current liabilities and provisions | ||
| Provisions | 182 | 159 |
| Liabilities from bonds issued | 25,345 | 26,744 |
| Bank borrowings | 16,754 | 19,777 |
| Other financial liabilities | 5,260 | 7,764 |
| Other non-financial liabilities | 4,864 | 4,885 |
| Total non-current liabilities and provisions | 52,405 | 59,329 |
| Current liabilities and provisions | ||
| Provisions | 2,826 | 1,354 |
| Liabilities from bonds issued | - | - |
| Bank borrowings | 8,173 | 6,062 |
| Other financial liabilities | 10,787 | 8,075 |
| Liabilities from contracts with customers | 1,873 | 1,778 |
| Trade payables | 5,996 | 6,421 |
| Tax liabilities | - | 62 |
| Other non-financial liabilities | 10,792 | 9,143 |
| Total current liabilities and provisions | 40,447 | 32,895 |
| Total equity and liabilities | 139,846 | 143,123 |
Consolidated statement of cash flows (IFRS | unaudited)
| kEUR | Q1 2024 | Q1 2023 |
|---|---|---|
| Cash flow from operating activities | ||
| Consolidated net result | -3,472 | -4,089 |
| Current income taxes recognized in the income statement | 370 | 187 |
| Income taxes paid | -339 | -4 |
| Net finance expenses recognized in the income statement | 867 | 779 |
| Interest received | 5 | 17 |
| Interest paid | -145 | -505 |
| Amortization of contract assets | 5 | 1 |
| Depreciation, amortization and impairment losses | 4,287 | 3,626 |
| Gain/loss on the disposal of non-current assets | -1,265 | -362 |
| Decrease (increase) in other assets | -24 | 3,152 |
| Increase (decrease) in other liabilities | 1,663 | -1,650 |
| Increase (decrease) in provisions | 1,495 | 49 |
| Other non-cash items | -3,300 | -901 |
| Cash flow from operating activities before working capital changes | 146 | 300 |
| Decrease (increase) in inventories | -1,310 | -2,129 |
| Decrease (increase) in trade receivables | -1,416 | 542 |
| Increase (decrease) in trade payables | -557 | -1,235 |
| Net cash flow from operating activities | -3,138 | -2,522 |
| Cash flow from investing activities | ||
| Payments for investments in intangible assets | - | -301 |
| Proceeds from the disposal of property, plant and equipment | 208 | 490 |
| Payments for investments in property, plant and equipment | -1,131 | -2,358 |
| Proceeds from the disposal of non-current assets | - | - |
| Payments for investments in contract assets | -4 | -16 |
| Net cash flow from investing activities | -927 | -2,185 |
| Cash flow from financing activities | ||
| Proceeds from bank loans | -325 | 13,458 |
| Repayments of bank loans | -1,222 | -7,783 |
| Payments for lease liabilities | 676 | -633 |
| Net cash flow from financing activities | -871 | 5,042 |
| Change in cash and cash equivalents before exchange rate effects | -4,936 | 335 |
| Effective of exchange rate changes on cash and cash equivalents | 25 | -131 |
| Net change in cash and cash equivalents | -4,911 | 204 |
| Cash and cash equivalents at the start of period | 17,090 | 9,381 |
| Cash and cash equivalents at end of period | 12,179 | 9,585 |
Contact
va-Q-tec AG Felix Rau Telephone: +49 931 35942 – 2973 Email: [email protected]
cometis AG Claudius Krause Telephone: +49 611 - 20 585 5-28 Email: [email protected]
About va-Q-tec
va-Q-tec is a pioneer in highly efficient products and solutions in the area of thermal insulation and TempChain logistics. The company develops, produces and markets highly efficient and therefore thin vacuum insulation panels (VIPs) for insulation, as well as phase change materials (PCMs) for reliable and energy-efficient temperature controlling. Using this key thermal technology, va-Q-tec manufactures passive thermal packaging systems (containers and boxes) which, depending on type, can maintain constant temperatures for up to 200 hours without the need for external energy. 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. 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, Follow va-Q-tec on Twitter: @vaQtec, LinkedIn: linkedin.com/company/va-Q-tec