Quarterly Report • Apr 22, 2022
Quarterly Report
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Vitrolife AB (publ)
Vitrolife Group is committed to supporting successful reproductive treatment outcome by providing valued solutions through a focus on the needs of IVF clinics and testing labs. We have been dedicated to IVF since 1994 and through wellexecuted product development programs, ground-breaking research, consistent quality controls and the acquisition of other innovative companies in the industry, Vitrolife Group has grown and taken market shares globally. We support customers worldwide - always with
sustainability in mind. Based on science and advanced research capabilities, our aim is to deliver outstanding products and services for the entire fertility journey, providing consistent performance and guaranteed quality.
Vitrolife Group's vision is to fulfil the dream of having a baby. We achieve this by supporting our customers by improving their clinical practice and the outcome of the patient's fertility treatment.
The Vitrolife share is listed on NASDAQ Stockholm.
Consumables
Media, cryo products, disposable devices, and genomic kits.
Technologies Incubation, time-lapse evaluation, laser and QC systems.
Genetic Services
Reproductive genetic testing services.
• No events have occurred after the end of the period that significantly affect the assessment of the financial information in this report.
corresponding to a margin of 30.4% (43.0). EBITDA per share increased 13%
• Net income was SEK 82 (119) million, resulting in earnings per share of SEK 0.60 (1.09).
Pro forma
| January - March | Full year | Pro forma Jan - Mar*** |
Pro forma Full year*** |
||
|---|---|---|---|---|---|
| SEK millions (unless otherwise indicated) | 2022 | 2021 | 2021 | 2021 | 2021 |
| Net sales | 752 | 379 | 1,681 | 684 | 2,817 |
| Gross margin, % | 56 | 65 | 62 | 57 | 56 |
| Adjusted gross margin*, % | 58 | 67 | 63 | 61 | 59 |
| Operating income before depreciation and amortisation (EBITDA) | 228 | 163 | 544 | 235 | 906 |
| EBITDA margin, % | 30 | 43 | 32 | 34 | 32 |
| Net income | 82 | 119 | 344 | 104 | 423 |
| Net debt / Rolling 12 month EBITDA | 2.9 | -2.2 | 3.2 | N/A | N/A |
| Earnings per share**, SEK | 0.60 | 1.09 | 2.97 | 0.77 | 3.11 |
| Share price on closing date, SEK | 311.60 | 256.40 | 560.0 | N/A | N/A |
| Market cap at closing date | 42,205 | 27,832 | 75,850 | N/A | N/A |
| Changes in net sales | |||||
| Organic growth in local currency, % | 11 | 20 | 30 | ||
| Acquired growth, % | 74 | - | 9 | ||
| Currency effects, % | 13 | -6 | -4 | ||
| Total growth, % | 98 | 14 | 35 |
*Gross margin excluding amortisation of acquisition-related intangible assets.
** Before and after dilution.
*** Quarterly reports during 2022 will show Pro forma for 2021. For Pro forma information, see pages 17-18.
For definitions, motivations and reconciliations, see pages 19-21.
I am really encouraged by our continuous sales growth and how we work together as Vitrolife Group. We will build the future on our strength in products and services included in the reproduction cycle. Our customers are IVF clinics, which need products and services, and individuals, who need genetic diagnostics/screening.
Vitrolife Group sales during the first quarter were SEK 752 million, an increase of 98% in SEK and 85% in local currencies. Genetic Services' contribution to sales was SEK 304 million. We grew strongly, both organically and through the acquisition, in all market regions. In local currencies, growth was 255% for Americas, 85% for EMEA, 21% for Japan Pacific and 19% for Asia. The high growth in Americas also gives us better global balance in our sales.
Our initial workstream is focusing on how to create synergies in the combined offer to our customers. It has been positively received amongst those with whom we already have started a dialogue, and we see opportunities in all markets based upon our different customer relations.
We are now operating in three business areas: Consumables, Technologies, and Genetic Services. Our sales and customer support structure for Genetic Services is based on the global decentralised organisation with laboratories. Consumables and Technologies are working together in a Marketing and Sales structure, with a direct sales organisation combined with a network of distributors. Finance, IT, HR & Sustainability have already started to work together as Group Functions. Our market areas are Americas, EMEA, Asia and Japan Pacific. We will continue using the basic principle of profitable growth for everything we do in the market regions. We are primarily aiming for customer synergies and a relevant way of measuring our progress is market contribution. In addition, we will also be presenting pro forma financials during this year.
All business areas are growing in all regions in local currencies, apart from decline for Technologies in Asia and Japan Pacific, impacted by a high Time-lapse hardware sales level last year in that region. Business area Consumables' sales growth of 26% in SEK is driven by continuous sales progress in our various product lines. Our sales in Technologies increased by 4% in SEK and I am pleased with the sales momentum of continuous growth for our Time-lapse equipment. Genetic Services (excluding Covid) increased sales by 19% in SEK, driven by the growth in our largest area, pre-implantation testing. We see rapid sales growth, although from low levels, within Genetic Services' new genetic disorder testing (GPDx), closely related to the reproduction cycle.
EBTIDA increased to SEK 228 (163) million, equivalent to an EBITDA margin of 30.4% (43.0%). The EBITDA growth of 40% is primarily related to profitable sales growth and the acquisition of Igenomix. On a pro forma basis (also including Covid testing), EBITDA decreased by 4 percentage points, primarily driven by an increase of SEK 40 million in our total operating expenses. The increase is related to build-up of the genetic disorder testing business and a situation where resources built up for Covid-related testing are to a large extent being kept and integrated into the daily genetic testing business in order to manage future growth. Process improvements to achieve scalability efficiency, automation of laboratory work and cross-learning in our services business are activities that will be, or already have been, started in order to control and to drive down OPEX in relation to sales.
The underlying growth in the IVF market continues to be strong with solid growth drivers, which include demographic and social trends, supported by technical improvements and favourable regulation. The reimbursement systems and insurance coverage are supporting the underlying growth. In one of our key markets, Japan, a new reimbursement system is being launched from 1 April, with an expected increase in the number of healthy babies born through IVF support.
Thomas Axelsson, CEO
Sales during Q1 2022 increased from SEK 379 million to SEK 752 million, corresponding to an increase of 98% in SEK and 85% in local currencies. Most markets are back to a normalised number of IVF cycles from the pandemic, with some local exceptions.
Consumables grew by 26% in SEK, and 18% in local currencies, driven by growth in all product lines and acquired revenue related to Genomics products. Sales in Americas increased by 21% in local currencies and Asia grew by 32% in local currencies.
Technologies increased sales by 4% in SEK, and -1% in local currencies, driven by increased recurring revenue and equipment sales in EMEA, and negatively affected by onetime hardware equipment sales in Asia and Japan Pacific during the previous year's strong sales. The introduction of the AI software IDAscore contributes to the generally increased interest in Technologies and sales of software.
Genetic Services contributed SEK 304 million to sales.
Growth compared with the first quarter of 2021 (Pro forma SEK 684 million) amounted to SEK 68 million, corresponding to an increase of 3% in local currencies. The discontinuing business related to Covid tests amounted to SEK 11 million, compared with SEK 58 million in the previous year. Adjusted for discontinuing business sales, Genetic Services increased by SEK 46 million, corresponding to an increase of 10% in local currencies.
Operating income before depreciation and amortisation (EBITDA) amounted to SEK 228 (163) million corresponding to a margin of 30.4% (43.0%). The margin was positively affected by increased sales, while both product mix and significantly increased OPEX from the acquisition of Igenomix had a negative impact on the result. Currency fluctuations had a negative impact of SEK -20 million on EBITDA. Gross income amounted to SEK 419 (247) million, corresponding to a margin of 55.7% (65.2%). The reduction was mainly driven by the combined business with a significantly lower margin in genetic testing.
Gross income increased to SEK 419 (390) million, corresponding to a margin of 55.7% (57.0%). Operating income before depreciation and amortisation (EBITDA) declined by SEK 7 million, positively affected by increased sales and negatively affected by OPEX of SEK 40 million, driven primarily by build-up of the genetic disorder testing business. EBITDA in relation to Net sales decreased from 34.4% to 30.4%.
EMEA increased sales to SEK 304 (158) million, corresponding to an increase of 85% in local currencies, mainly driven by sales from Technologies in combination with Consumables. Genetic Services contributed SEK 105 million in sales to the region. The Gross income margin of 56.3% (62.6%) was diluted by the combined business of Genetic Services. The market contribution from EMEA amounted to SEK 113 (75) million, corresponding to a margin of 37.1% (47.7%).
Genetic Services sales in the region decreased by -22% in local currencies and were negatively affected by a reduction in the number of Covid tests performed but positively affected by tests related to IVF. Total sales in the region increased from SEK 287 million to SEK 304 million, corresponding to an increase of 2% adjusted for currency.
Asia increased its sales to SEK 111 (85) million, corresponding to an increase of 19% in local currencies. Consumable sales increased significantly by 32% in local currencies, driven by returning IVF cycles and the positive impact of Genomics business in the region. Technologies decreased compared with the previous year as sales in the comparative period were strong. Gross income increased from SEK 57 million to SEK 63 million, corresponding to a margin of 56.6% (67.1%), with the margin decline being mainly due to the product mix. The market contribution decreased to SEK 46 (47) million, with a margin of 41.6% (55.6%).
Genetic Services sales in the region increased by 34% in local currencies, driven by tests related to IVF. Total sales amounted to SEK 111 (101) million, equivalent to an increase of 2% in local currencies.
Americas sales amounted to SEK 246 (62) million, corresponding to an increase of 255% in local currencies. Genetic Services contributes significantly to the region, with total sales of SEK 154 million. Technologies sales, related to both recurring revenue and one-time equipment sales, increased from a low level in addition to significant growth of 21% in local currencies in Consumables. Gross income amounted to SEK 127 (38) million, with a margin of 51.6% (62.0%). The market contribution increased to SEK 75 (31) million, corresponding to a margin of 30.4% (50.1%), diluted by the combined business.
Total sales increased to SEK 246 (202) million, corresponding to an increase of 8% in local currencies. The decreased sales of -3% in local currencies in Genetic Services were positively impacted by tests related to preimplantation testing while negatively impacted by tests related to Covid in South America.
Japan Pacific sales amounted to SEK 91 (74) million, equivalent to an increase of 21% in local currencies. Consumables´ sales increased in the period, mainly driven by access to the region for Genomics products. Technologies sales declined significantly compared with the first quarter in the previous year, when sales of equipment were high. Gross income increased to SEK 57 (53) million, corresponding to a margin of 62.8% (71.1%). The market contribution decreased from SEK 43 million to SEK 42 million, with a corresponding margin of 46.3% (57.6%). The margin was diluted by the combined business.
Genetic Services sales in the region increased by 19% in local currencies driven by tests related to IVF and total sales amounted to SEK 91 (94) million, equivalent to a decrease of -5% in local currencies.
In the first quarter, net interest expenses were SEK 8 million. Other financial items amounted to SEK -11 million, with the change being largely due to commitment fees for loan agreements and revaluation of financial liabilities.
In the first quarter, taxes amounted to SEK 31 (29) million.
EBITDA per share amounted to SEK 1.69 (1.50)
Net income for the first quarter amounted to SEK 82 (119) million. Earnings per share (EPS) amounted to SEK 0.60 (1.09).
Operating cash flow for the first quarter contributed SEK 90 (143) million. The decline in cash flow is mainly related to an increase in net working capital in the period. Cash flow from investing activities was SEK -61 million and from financing activities SEK -83 million, including borrowing repayments of SEK -56 million.
In the first quarter, net debt decreased by SEK 18 million to SEK 1.8 billion as of 31 March. Cash and cash equivalents amounted to SEK 583 million as of 31 March. Total assets increased by SEK 17.0 billion and amounted to SEK 19.5 billion, driven by the acquisition of Igenomix. Equity amounted to SEK 15.5 (2.2) billion at the end of March. The available undrawn Revolving Credit Facility amounted to EUR 70 million.
Business activities focus on Group-wide management. Income included invoicing of management fee and other costs of SEK 12 (4) million. Net financial items amounted to SEK -17 (2) million, primarily impacted by currency effects, commitment fees and net interest expenses. Income after financial items for the quarter amounted to SEK -19 (-1)
million. Cash and cash equivalents amounted to SEK 237 (338) million.
| Shares and | ||
|---|---|---|
| Shareholders | No. of shares | votes, % |
| William Demant Invest A/S | 37,706,774 | 27.84 |
| Bure Equity AB (publ) | 21,510,257 | 15.88 |
| State Street Bank and Trust Co, W9 | 13,332,697 | 9.84 |
| BNY Mellon SA/NV (Former BNY), W8IMY | 7,706,809 | 5.69 |
| Fjärde AP-fonden | 4,705,886 | 3.47 |
| J.P. Morgan SE, Luxembourg Branch | 3,559,874 | 2.63 |
| AMF - Försäkring och Fonder | 3,352,166 | 2.47 |
| JP Morgan Chase Bank NA | 3,045,256 | 2.25 |
| Goldman Sachs & Co. LLC, W9 | 2,123,516 | 1.57 |
| SEB Investment Management | 1,914,844 | 1.41 |
| Other shareholders | 36,489,111 | 26.94 |
| Total | 135,447,190 | 100 |
Source: Euroclear Sweden's shareholder register at 31 March 2022
In 2021, Vitrolife received information that a civil lawsuit had been filed against Vitrolife in Germany by Ares Trading S.A. regarding alleged infringement of three patents in the Time-lapse area. In 2021 Vitrolife disputed the lawsuit and will safeguard the company's interests in the ongoing legal process. The court has stated that oral proceedings will take place during the second quarter of 2022. Vitrolife is already involved in an appeal process regarding two of the three patents in question in the EU. One of these patents was recalled by the European Patent Office in 2021 and the lawsuit was withdrawn by Ares Trading S.A. in the same year. In 2021, Ares Trading S.A. filed a new complaint against Vitrolife based on another patent. Vitrolife has filed an appeal against the patent complaint with the EPO. The oral proceedings in the most recent patent dispute will most likely take place in mid-2023. Vitrolife has not included any provision for the lawsuit in the accounts as it is the continued belief of the company that there has been no patent infringement. Costs for legal representation are charged against income as incurred.
Increased vaccination rates are supporting the recovery of the IVF market and enabling a return to more normal customer operations. Russia's invasion of Ukraine has created uncertainty in the geo- and security political environment, whose consequences are not possible to judge. Our total sales to Russia, including the Igenomix laboratory with 14 employees and sales of medical devices, represented approximately 2 percent of our consolidated sales (pro-forma). In terms of risks, the spread of Covid-19 is still strong in some regions, creating uncertainty about the market recovery. We are working actively with customer deliveries by securing our levels of stock and alternative
subcontractors where necessary. A gradual cost increase is expected with new recruitments and a normalisation of operations, for example, trade fairs and customer visits and also development costs within the Genetic Services business area.
Vitrolife estimates that the long-term market outlook is largely unchanged, meaning a continuously growing market which, in financial terms, is expected to grow by 5-10 percent per year for the foreseeable future. We will continue to focus on increasing sales by expanding and improving the product and service offering.
Vitrolife's business concept is to develop, produce and market advanced, effective and safe products and systems for assisted reproduction.
Vitrolife's goal is to be the leading provider of solutions that reduce the time to achieve a healthy baby and improve workflow efficiency and control for IVF clinics.
Vitrolife has identified five strategic focus areas to achieve that goal:
During the period the average number of employees was 1,142 (412), of whom 671 (202) were women and 471 (210) were men. Of these, 164 (158) persons were employed in Sweden, 239 (-) in Spain, 86 (-) in Brazil, 202 (88) in the US, 87 (85) in Denmark, and 364 (81) in the rest of the world. The number of persons employed in the Group at the end of the period was 1,172 (424).
No transactions substantially affecting the company's
results and financial position have been conducted with related parties during the period. For information on related parties, see the Annual Report for 2021, note 30.
The Board has proposed to the Annual General Meeting a dividend of SEK 108 (87) million, corresponding to SEK 0.80 (0.80) per share.
Vitrolife works constantly and systematically to identify, evaluate and manage overall risks and different systems and processes. Risk analyses are performed continually with regard to the company's normal business activities and also in connection with activities that are outside Vitrolife's regular quality system. In this way, the company can have a high rate of development and at the same time be aware of both the opportunities and risks.
The most important strategic and operative risks regarding Vitrolife's business and field are described in detail in the Management report, in the Annual Report for 2021. These are primarily macro-economic risks, operational risks and financial risks. The company's management of risks is also described in the Corporate Governance Report in the same Annual Report. The same applies to the Group's management of financial risks, which are described in the Annual Report for 2021, note 2. The reported risks, as described in the 2021 annual report, are deemed to be essentially unchanged.
Seasonal effects have a relatively marginal effect on Vitrolife's sales. Before and during holiday periods there is often a reduction in orders. The reason that the orders decline before holiday periods is that the fertility clinics minimise their stores, mostly of media, since these have a relatively short shelf life, to limit the risk of spoilage. The third quarter, with the European summer holiday period, is most negatively affected. First quarter sales in China are negatively affected by Chinese New Year in January or February. Fourth quarter sales are negatively affected in December by the Christmas and New Year holidays. In all, total sales are usually relatively even between the first and second halves of the year.
The following individuals have been appointed as members of Vitrolife's election committee for the 2022 Annual General Meeting:
Niels Jacobsen, appointed by William Demant Invest A/S Patrik Tigerschiöld, appointed by Bure Equity AB Wendy Wang, appointed by Morgan Stanley Investment Management Inc.
Jón Sigurdsson, Chairman of the Board
The appointments have been made in accordance with the instructions regarding principles for the appointment of the company's election committee, which were adopted at the Annual General Meeting of Vitrolife on 28 April 2021.
The Annual General Meeting will be held on Wednesday 27 April 2022 at 4.00 p.m. at Elite Park Avenue Hotel, Kungsportsavenyn 36-38, Gothenburg. For more information, see www.vitrolife.com.
Vitrolife's Annual Report for 2021is available for download on Vitrolife's website and in a printed version at the company's head office in Gothenburg. The Annual Report has been sent out to those shareholders who have notified the company that they wish to receive the printed version.
No events have occurred after the end of the period that significantly affect the assessment of the financial information in this report.
22 April 2022 Gothenburg, Sweden
Thomas Axelsson CEO
Vitrolife's interim reports are published on the company's website, www.vitrolife.com, and are sent to shareholders who have registered their interest in receiving this information.
27/04/2022: Annual General Meeting 2022 15/07/2022: Interim report January - June 2022 27/10/2022: Interim report January - September 2022 02/02/2023: Report on operations 2022
Thomas Axelsson, CEO, phone +46 31 721 80 01 Patrik Tolf, CFO , phone +46 31 766 90 21
This information is such that Vitrolife AB (publ) is obliged to publish according to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 am CET on April 22, 2022.
There is a Swedish translation of the interim report. When in doubt, the English wording prevails.
| January – March | |||
|---|---|---|---|
| SEK millions Note |
2022 | 2021 | 2021 |
| Net sales 4,5 |
752 | 379 | 1,681 |
| Cost of sales | -333 | -132 | -635 |
| Gross income | 419 | 247 | 1,046 |
| Comprising | |||
| Adjusted gross income | 438 | 253 | 1,065 |
| Amortisation of acquisition-related intangible assets | -19 | -6 | -19 |
| Gross income | 419 | 247 | 1,046 |
| Selling expenses | -142 | -51 | -244 |
| Administrative expenses | -98 | -36 | -259 |
| Research and development costs | -44 | -25 | -114 |
| Other operating income | – | 7 | 10 |
| Other operating expenses | -1 | – | -2 |
| Operating income | 133 | 142 | 435 |
| Comprising | |||
| Adjusted operating income | 194 | 149 | 467 |
| Amortisation of acquisition-related intangible assets | -61 | -6 | -32 |
| Operating income | 133 | 142 | 435 |
| Financial income and expenses | -20 | 5 | 25 |
| Income after financial items | 113 | 148 | 460 |
| Income taxes | -31 | -29 | -116 |
| Net income | 82 | 119 | 344 |
| Attributable to | |||
| Parent Company shareholders | 82 | 118 | 341 |
| Non-controlling interests | 1 | 1 | 3 |
| Earnings per share*, SEK | 0.60 | 1.09 | 2.97 |
| Average number of shares outstanding | 135,394,622 | 108,550,575 | 114,625,057 |
| Number of shares at closing date | 135,447,190 | 108,550,575 | 135,447,190 |
* Before and after dilution.
Depreciation, amortisation and impairment had a negative effect of SEK 95 (21) million on income for the period, and SEK 109 million on income for the full year 2021.
| January – March | Full year | ||
|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 |
| Net income | 82 | 119 | 344 |
| Other comprehensive income | |||
| Items that may be reclassified to the income statement | |||
| Exchange differences | 149 | 27 | 19 |
| Total other comprehensive income | 149 | 27 | 19 |
| Comprehensive income | 231 | 146 | 362 |
| Attributable to | |||
| Parent Company shareholders | 231 | 145 | 360 |
| Non-controlling interests | 1 | 1 | 3 |
| SEK millions Note |
31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| ASSETS 2 |
|||
| Non-current assets | |||
| Goodwill | 13,111 | 412 | 12,995 |
| Other intangible assets | 4,536 | 296 | 4,553 |
| Property, plant and equipment | 347 | 147 | 333 |
| Other shares and participations | – | 13 | – |
| Other financial assets | 49 | 27 | 49 |
| Deferred tax assets | 83 | 10 | 92 |
| Total non-current assets | 18,126 | 905 | 18,022 |
| Current assets | |||
| Inventories | 336 | 215 | 313 |
| Trade receivables | 414 | 237 | 391 |
| Current tax assets | 16 | 3 | 17 |
| Other receivables | 25 | 8 | 22 |
| Prepaid expenses and accrued income | 36 | 12 | 32 |
| Cash and cash equivalents | 583 | 1,118 | 630 |
| Total current assets | 1,409 | 1,593 | 1,407 |
| TOTAL ASSETS | 19,535 | 2,497 | 19,429 |
| EQUITY | |||
| Equity attributable to Parent Company shareholders | 15,529 | 2,159 | 15,322 |
| Non-controlling interests | 13 | 5 | 19 |
| TOTAL EQUITY | 15,542 | 2,164 | 15,341 |
| LIABILITIES 2 |
|||
| Non-current liabilities | |||
| Provisions | 29 | 24 | 28 |
| Deferred tax liabilities | 1,052 | 16 | 1,069 |
| Borrowings | 1,901 | – | 1,944 |
| Lease liabilities | 82 | 47 | 82 |
| Other liabilities | 11 | 26 | 11 |
| Total non-current liabilities | 3,075 | 113 | 3,134 |
| Current liabilities | |||
| Borrowings | 442 | – | 429 |
| Lease liabilities | 32 | 13 | 27 |
| Trade payables | 179 | 48 | 173 |
| Current tax liabilities | 38 | 22 | 25 |
| Other liabilities | 76 | 19 | 59 |
| Accrued expenses and deferred income | 151 | 119 | 241 |
| Total current liabilities | 918 | 221 | 954 |
| TOTAL LIABILITIES | 3,993 | 333 | 4,088 |
| TOTAL EQUITY AND LIABILITIES | 19,535 | 2,497 | 19,429 |
| Attributable to Parent Company shareholders | ||||||
|---|---|---|---|---|---|---|
| SEK millions | Share capital |
Other contributed capital |
Reserves | Retained earnings |
Non controlling interests |
Total equity |
| Opening balance 1 January 2021 | 22 | 495 | 2 | 1,216 | 4 | 1,797 |
| Comprehensive income for the year | – | – | 19 | 341 | 23 | 362 |
| Equity compensation benefits | – | – | – | 5 | – | 5 |
| Dividend (SEK 0.80 per share) | – | – | – | -87 | – | -87 |
| Dividend to non-controlling interests | – | – | – | – | -1 | -1 |
| New share issue | 2 | 3,556 | – | – | – | 3,558 |
| Non-cash issue | 3 | 9,519 | – | – | – | 9,523 |
| Issue expenses, net of tax | – | -26 | – | – | – | -26 |
| Repurchase of own shares | – | – | – | -23 | – | -23 |
| Non-controlling interest incurred from acquisition of subsidiary | – | – | – | – | 13 | 13 |
| Closing balance 31 December 2021 | 27 | 13,544 | 21 | 1,730 | 19 | 15,341 |
| Opening balance 1 January 2022 | 27 | 13,544 | 21 | 1,730 | 19 | 15,341 |
| Comprehensive income for the year | – | – | 149 | 82 | 1 | 231 |
| Equity compensation benefits | – | – | – | 2 | – | 2 |
| Acquisition of non-controlling interest* | – | – | – | -26 | -6 | -32 |
| Closing balance 31 March 2022 | 27 | 13,544 | 169 | 1,788 | 13 | 15,542 |
* During the quarter Vitrolife AB acquired the remaining shares (30%) of A.T.S. Srl.
| January – March | Full year | ||
|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 |
| Income after financial items | 113 | 148 | 460 |
| Adjustment for non-cash items | 113 | 13 | 78 |
| Tax paid | -31 | -17 | -144 |
| Change in inventories | -21 | -7 | -47 |
| Change in operating receivables | -31 | -21 | -5 |
| Change in operating payables | -53 | 27 | 42 |
| Cash flow from operating activities | 90 | 143 | 384 |
| Acquisition of business, after deduction for cash and cash equivalents | – | – | -6,447 |
| Net investments in non-current assets | -29 | -10 | -62 |
| Acquisition of non-controlling interests | -32 | – | -19 |
| Sale of financial assets | – | – | 16 |
| Additional purchase price | – | – | -6 |
| Cash flow from investing activities | -61 | -10 | -6 ,518 |
| Borrowings | – | – | 2,354 |
| Set-up fee borrowings | -19 | – | 0 |
| Repayment of borrowings | -56 | – | -1 |
| Repayment of lease liabilities | -7 | -4 | -18 |
| Dividends paid | – | – | -88 |
| New share issue | – | – | 3,558 |
| Expenses for new share issue | – | – | 33 |
| Repurchase of own shares | – | – | -23 |
| Cash flow from financing activities | -83 | -4 | 5,749 |
| Cash flow for the period | -54 | 129 | -385 |
| Opening cash and cash equivalents | 630 | 974 | 974 |
| Exchange difference in cash and cash equivalents | 7 | 15 | 42 |
| Closing cash and cash equivalents | 583 | 1,118 | 630 |
| January – March | Full year | ||
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Gross margin, % | 55.7 | 65.2 | 62.2 |
| Adjusted gross margin, % | 58.2 | 66.8 | 63.4 |
| Operating margin before depreciation and amortisation (EBITDA), % | 30.4 | 43.0 | 32.4 |
| Operating margin (EBIT), % | 17.7 | 37.6 | 25.9 |
| Net margin, % | 11.0 | 31.4 | 20.4 |
| Equity/assets ratio, % | 79.6 | 86.6 | 79.0 |
| Equity per share, SEK | 114.65 | 19.89 | 113.12 |
| Return on equity, % | 3.1 | 16.2 | 5.4 |
| Cash flow from operating activities per share, SEK | 0.66 | 1.32 | 3.35 |
| Net debt*, SEK millions | 1,760.9 | -1,117.6 | 1,743.0 |
* Negative amount implies net claim.
For definitions, motivations and reconciliations, see pages 19-21.
| January – March | ||||
|---|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 | |
| Net sales | 12 | 4 | 25 | |
| Administrative expenses | -14 | -7 | -33 | |
| Other operating income | – | 0 | – | |
| Other operating expenses | 0 | – | 0 | |
| Operating income | -2 | -3 | -8 | |
| Dividends from Group companies | – | – | 731 | |
| Impairment of shares in Group companies | – | – | -22 | |
| Financial income and expenses | -17 | 2 | 22 | |
| Income after financial items | -19 | -1 | 723 | |
| Group contribution received | – | – | 50 | |
| Income taxes | 4 | 0 | -13 | |
| Net income | -15 | -1 | 760 |
Depreciation and amortisation had an effect SEK - (-) million on income for the period, and SEK - (-) million for the full year 2021.
| SEK millions | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| ASSETS | |||
| Property, plant and equipment | 0 | 0 | 0 |
| Participations in Group companies | 15,626 | 773 | 15,593 |
| Shares and participations | – | 13 | – |
| Other financial assets | 9 | 7 | 8 |
| Receivables from Group companies, non-current | 1,358 | – | 1,344 |
| Deferred tax assets | 6 | 3 | 2 |
| Receivables from Group companies, current | 81 | 3 | 76 |
| Current tax receivables | – | 1 | – |
| Other current receivables | 3 | 2 | 2 |
| Prepaid expenses and accrued income | 2 | 3 | 0 |
| Cash and cash equivalents | 237 | 338 | 296 |
| Total assets | 17,323 | 1 ,143 | 17,323 |
| EQUITY AND LIABILITIES | |||
| Equity | 14,651 | 954 | 14,664 |
| Provisions | 12 | 9 | 11 |
| Borrowings, non-current | 1,894 | – | 1,924 |
| Current tax liabilities | 4 | – | 4 |
| Trade payables | 3 | 2 | 2 |
| Borrowings, current | 413 | – | 409 |
| Liabilities to Group companies | 334 | 170 | 275 |
| Other liabilities | 0 | 0 | 0 |
| Accrued expenses and deferred income | 11 | 8 | 33 |
| Total equity and liabilities | 17,323 | 1,143 | 17,323 |
14 Interim Report January–March 2022 Vitrolife AB (publ), corp. id. no. 556354-3452
This interim report has been prepared for the Group in accordance with the Annual Accounts Act and IAS 34, Interim Financial Reporting, and for the Parent Company in accordance with the Annual Accounts Act and recommendation RFR 2 of the Swedish Financial Reporting Board, Accounting for Legal Entities.
Unless otherwise stated below, the accounting principles applied to the Group and the Parent Company are consistent with the accounting principles used in the presentation of the most recent Annual Report.
No standards, amendments or interpretations that have come into force in 2022 are expected to have any material impact on the Group.
Fair value has been calculated for all financial assets and liabilities in accordance with IFRS 13. The fair value of other financial assets, other receivables, trade and other current receivables, cash and cash equivalents, trade and other payables and interest-bearing borrowings is estimated to correspond with their carrying amounts (amortised cost). As Vitrolife has loans with variable interest rates, the fair value is estimated to correspond with the carrying amount. Financial assets and liabilities measured at amortised cost amount to SEK 1,034 (1,368) million and SEK 2,675 (150) million.
Vitrolife's sales consist of products and services, which clearly represent separate performance obligations. Sales of products are recognised as revenue when they have been delivered to the customer. Vitrolife also sells services in the form of the servicing of products, primarily in the Technologies business area, and also in the form of the recharging of freight. Servicing is largely invoiced in advance and is recognised as revenue during the course of the servicing contract. Servicing revenues not recognised as revenue are reported as deferred income (contractual liabilities) in the balance sheet. Sales in the Genetic Services business area, which was established in December 2021, mainly refer to services for genetic testing. These services are recognised as revenue on delivery of the test results to the customer.
| Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
| 122 | 106 | 75 | 55 | 41 | 33 | 70 | 49 | 307 | 243 |
| 77 | 52 | 17 | 6 | 27 | 41 | 20 | 37 | 141 | 136 |
| 105 | – | 154 | – | 24 | – | 22 | – | 304 | – |
| 304 | 158 | 246 | 62 | 91 | 74 | 111 | 85 | 752 | 379 |
| 6 | 8 | 6 | 8 | ||||||
| EMEA EMEA |
Americas Americas |
Japan Pacific Japan Pacific |
Asia Asia |
Total |
| SEK millions | Full year 2021 | Full year 2021 | Full year 2021 | Full year 2021 | Full year 2021 |
|---|---|---|---|---|---|
| Consumables | 466 | 260 | 134 | 232 | 1,091 |
| Technologies | 227 | 36 | 103 | 108 | 474 |
| Genetic Services | 42 | 58 | 8 | 8 | 116 |
| Total | 735 | 354 | 245 | 347 | 1,681 |
| Whereof Sweden | 25 |
| SEK millions | 31 Mar 2022 31 Mar 2021 31 Dec 2021 | ||
|---|---|---|---|
| Group | |||
| Pledged assets | 38 | 37 | 37 |
| Contingent liabilities | 12 | 10 | 12 |
| Parent Company | |||
| Pledged assets | 9 | 10 | 8 |
| Contingent liabilities | 2 | 7 | 1 |
Pledged assets pertain to floating charges for own commitments and collateral pledged for endowment insurance plans (cost). Contingent liabilities refer to guarantees to external parties, and the difference between market value and carrying amount of endowment insurance plans.
Vitrolife applies the following geographical segments: EMEA, Americas, Japan Pacific and Asia. From January 2022, Vitrolife categorizes its products and services into the following business areas: Consumables (including previous business area Genomics), Technologies and Genetic Services (from December 2021). Revenue by business area and segment is presented in the tables below. For more information on the company's segments, see note 5.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 |
| Products | 422 | 357 | 1,472 |
| Services | 330 | 22 | 209 |
| Total | 752 | 379 | 1,681 |
Vitrolife consists of three business areas whose products and services are sold by four geographical market organisations. The business area Genetic Services was included from December 2021. Vitrolife reports net sales and market contribution per geographical segment. Market contribution is defined as gross income less selling expenses for each market. Administrative expenses, research and development expenses, other operating income and expenses and net financial items are not distributed by segment. The balance sheet is not monitored by segment. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM is the function that is responsible for allocating resources and assessing the performance of the operating segments. For the Group, this function has been identified as the CEO.
| EMEA | Americas | Japan Pacific | Asia | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK millions | Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
Jan-Mar 2022 |
Jan-Mar 2021 |
| Net sales | 304 | 158 | 246 | 62 | 91 | 74 | 111 | 85 | 752 | 379 |
| Gross income | 171 | 99 | 127 | 38 | 57 | 53 | 63 | 57 | 418 | 247 |
| Selling expenses | -58 | -23 | -52 | -7 | -15 | -10 | -17 | -10 | -142 | -51 |
| Market contribution | 113 | 75 | 75 | 31 | 42 | 43 | 46 | 47 | 276 | 196 |
| Administrative expenses | -98 | -36 | ||||||||
| Research and development expenses |
-44 | -24 | ||||||||
| Other operating income and expenses |
-1 | 7 | ||||||||
| Operating income | 133 | 142 | ||||||||
| Net financial items | -20 | 5 | ||||||||
| Income after financial items |
113 | 148 |
| EMEA | Americas | Japan Pacific | Asia | Total | |
|---|---|---|---|---|---|
| SEK millions | Full year 2021 | Full year 2021 | Full year 2021 | Full year 2021 | Full year 2021 |
| Net sales | 735 | 354 | 245 | 347 | 1,681 |
| Gross income | 446 | 203 | 169 | 227 | 1,046 |
| Selling expenses | -110 | -48 | -38 | -47 | -244 |
| Market contribution | 336 | 155 | 131 | 180 | 802 |
| Administrative expenses | -259 | ||||
| Research and development expenses |
-114 | ||||
| Other operating income and expenses |
7 | ||||
| Operating income | 435 | ||||
| Net financial items | 25 | ||||
| Income after financial items |
460 |
| January – March | Full year | ||
|---|---|---|---|
| SEK millions | 2022 | Pro forma 2021 | Pro forma 2021 |
| Net sales | 752 | 684 | 2,817 |
| Cost of sales | -333 | -294 | -1,247 |
| Gross income | 419 | 390 | 1,569 |
| Comprising | |||
| Adjusted gross income | 438 | 415 | 1,656 |
| Amortisation of acquisition-related intangible assets | -19 | -25 | -87 |
| Gross income | 419 | 390 | 1,569 |
| Selling expenses | -142 | -124 | -529 |
| Administrative expenses | -98 | -72 | -323 |
| Research and development costs | -44 | -55 | -182 |
| Other operating income | 0 | 6 | 9 |
| Other operating expenses | -1 | – | -2 |
| Operating income | 133 | 145 | 542 |
| Comprising | |||
| Adjusted operating income | 194 | 210 | 789 |
| Amortisation of acquisition-related intangible assets | -61 | -65 | -247 |
| Operating income | 133 | 145 | 542 |
| Financial income and expenses | -20 | -14 | -45 |
| Income after financial items | 113 | 131 | 497 |
| Income taxes | -31 | -27 | -74 |
| Net income | 82 | 104 | 423 |
| Attributable to | |||
| Parent Company shareholders | 82 | 104 | 421 |
| Non-controlling interests | 1 | 0 | 2 |
| Earnings per share*, SEK | 0.60 | 0.76 | 3.10 |
| Average number of shares outstanding | 135,394,622 | 135,394,622 | 135,394,622 |
| Number of shares at closing date | 135,447,190 | 135,447,190 | 135,447,190 |
* Before and after dilution.
Depreciation, amortisation and impairment had a negative effect of SEK 95 (90) million on income for the period, and SEK 364 million on income for the full year Pro forma 2021.
The Pro forma consolidated income statements above show the consolidated income statements as if the acquisition had taken place on 1 January 2021. These amounts have been calculated using the companies' earnings adjusted for:
* the additional amortisation that would have been charged assuming the fair value adjustments to intangible assets had applied from 1 January 2021, together with the associated tax effects.
* interest and set-up costs relating to loans attributable to Igenomix that were terminated in connection with the acquisition have been reversed in the pro forma profit.
* the additional interest and set-up costs attributable to newly raised loans in connection with the acquisition have been charged to pro forma profit.
* non-recurring costs related to the transaction have been reversed in the pro forma profit.
| Net sales | EMEA | Americas | Japan Pacific | Asia | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK millions | Jan-Mar 2022 |
Jan-Mar 2021* |
Jan-Mar 2022 |
Jan-Mar 2021* |
Jan-Mar 2022 |
Jan-Mar 2021* |
Jan-Mar 2022 |
Jan-Mar 2021* |
Jan-Mar 2022 |
Jan-Mar 2021* |
| Consumables | 122 | 106 | 75 | 55 | 41 | 33 | 70 | 49 | 307 | 243 |
| Technologies | 77 | 52 | 17 | 6 | 27 | 41 | 20 | 37 | 141 | 136 |
| Genetic Services | 105 | 129 | 154 | 141 | 24 | 20 | 22 | 15 | 304 | 305 |
| Total | 304 | 287 | 246 | 202 | 91 | 94 | 111 | 101 | 752 | 684 |
* Jan-Mar 2021 Pro forma
| Genetics Services including sales covid-19 | January – March 2022 | ||||
|---|---|---|---|---|---|
| EMEA | Americas | Japan Pacific | Asia | Total | |
| Organic growth in local currency, SEK millions | -28 | -4 | 4 | 5 | -23 |
| Organic growth in local currency, % | -22 | -3 | 19 | 34 | -8 |
| Currency effects, SEK millions | 4 | 17 | 0 | 2 | 23 |
| Currency effects, % | 3 | 12 | 1 | 13 | 8 |
| Total growth, SEK millions | -24 | 13 | 4 | 7 | 0 |
| Total growth, % | -19 | 9 | 20 | 47 | 0 |
| January – March 2022 Vitrolife Group including sales covid-19 |
|||||
|---|---|---|---|---|---|
| EMEA | Americas | Japan Pacific | Asia | Total | |
| Organic growth in local currency, SEK millions | 5 | 17 | -5 | 2 | 18 |
| Organic growth in local currency, % | 2 | 8 | -5 | 2 | 3 |
| Currency effects, SEK millions | 12 | 26 | 2 | 9 | 50 |
| Currency effects, % | 4 | 13 | 2 | 9 | 7 |
| Total growth, SEK millions | 17 | 43 | -3 | 11 | 68 |
| Total growth, % | 6 | 21 | -3 | 11 | 10 |
| Genetics Services excluding sales covid-19 | January – March 2022 | ||||
|---|---|---|---|---|---|
| EMEA | Americas | Japan Pacific | Asia | Total | |
| Organic growth in local currency, SEK millions | 7 | 9 | 3 | 5 | 24 |
| Organic growth in local currency, % | 8 | 7 | 17 | 34 | 10 |
| Currency effects, SEK millions | 4 | 16 | 0 | 2 | 22 |
| Currency effects, % | 5 | 13 | 1 | 10 | 9 |
| Total growth, SEK millions | 11 | 25 | 4 | 7 | 46 |
| Total growth, % | 13 | 20 | 18 | 44 | 19 |
| Vitrolife Group excluding sales covid-19 | January – March 2022 | ||||
|---|---|---|---|---|---|
| EMEA | Americas | Japan Pacific | Asia | Total | |
| Organic growth in local currency, SEK millions | 39 | 30 | -5 | 2 | 66 |
| Organic growth in local currency, % | 16 | 16 | -5 | 2 | 11 |
| Currency effects, SEK millions | 13 | 26 | 2 | 9 | 49 |
| Currency effects, % | 5 | 13 | 2 | 9 | 8 |
| Total growth, SEK millions | 52 | 55 | -3 | 11 | 115 |
| Total growth, % | 21 | 29 | -3 | 11 | 18 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 |
| Net sales | 752 | 514 | 405 | 382 | 379 | 382 | 320 | 209 |
| Cost of sales | -333 | -215 | -143 | -145 | -132 | -130 | -121 | -98 |
| Gross income | 418 | 299 | 262 | 237 | 247 | 252 | 199 | 112 |
| Selling expenses | -142 | -90 | -50 | -54 | -50 | -48 | -41 | -49 |
| Administrative expenses | -98 | -136 | -42 | -46 | -36 | -27 | -31 | -25 |
| Research and development costs | -44 | -37 | -28 | -25 | -24 | -26 | -18 | -22 |
| Other operating income and expenses | -1 | 3 | 0 | -1 | 6 | - 3 | 3 | 1 |
| Operating income | 133 | 39 | 142 | 111 | 142 | 147 | 112 | 16 |
| Financial income and expenses | -20 | 22 | -1 | -1 | 5 | -10 | 1 | -5 |
| Income after financial items | 113 | 61 | 141 | 110 | 148 | 138 | 113 | 11 |
| Income taxes | -31 | -28 | -36 | -23 | -29 | -30 | -24 | 0 |
| Net income | 82 | 33 | 105 | 86 | 119 | 107 | 89 | 11 |
| Attributable to | ||||||||
| Parent Company shareholders | 82 | 33 | 104 | 86 | 118 | 107 | 88 | 12 |
| Non-controlling interests | 1 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
| Depreciation, amortisation and impairment | -95 | -45 | -20 | -23 | -21 | -17 | -21 | -23 |
| Jan-Mar 2022 |
Oct-Dec 2021 |
Jul-Sep 2021 |
Apr-Jun 2021 |
Jan-Mar 2021 |
Oct-Dec 2020 |
Jul-Sep 2020 |
Apr-Jun 2020 |
|
|---|---|---|---|---|---|---|---|---|
| Equity attributable to Parent Company share | ||||||||
| holders, SEK millions | 15,529.0 | 15,322.2 | 5,771.5 | 2,146.6 | 2,158.7 | 2,012.6 | 1,956.3 | 1,883.7 |
| Equity per share, SEK | 114.65 | 113.12 | 48.83 | 19.78 | 19.89 | 18.54 | 18.02 | 17.35 |
| Return on equity, % | 3.1 | 5.4 | 13.7 | 19.3 | 16.2 | 14.8 | 14.6 | 16.1 |
| Cash flow from operating activities | ||||||||
| per share, SEK | 0.66 | 0.00 | 0.91 | 1.23 | 1.32 | 1.58 | 0.89 | 0.63 |
This report includes certain performance measures not defined in IFRS, but they are included in the report as company management considers that this information makes it easier for investors to analyse the Group's financial performance and position. Investors should regard these alternative performance measures as complementing rather than replacing financial information in accordance with IFRS. Please note that Vitrolife's definitions of these performance measures may differ from other companies' definitions of the same terms.
The following definitions describe the performance measures that are used, referred to and presented in the financial reports. Measures that can be found directly in the financial reports and can be calculated on the basis of the definitions below have not been included in the tables on the following pages.
Definition: Net sales minus the cost of sales.
Purpose: This measure shows the Group's result before the effects of costs such as selling and administrative expenses.
Definition: Gross income in relation to net sales for the period.
Definition: Net sales minus all costs attributable to operations including
depreciation, amortisation and impairment of property, plant and equipment and intangible assets but excluding net financial items and tax.
Purpose: This is used to measure operational profitability and the Group's target achievement.
Definition: Operating income (EBIT) in relation to net sales for the period.
Definition: Operating income before depreciation, amortisation and impairment of property, plant and equipment and intangible assets.
Purpose: This is used to measure result from operating activities independent of depreciation and amortisation. The company aims to achieve growth while maintaining profitability, where profitability is followed up through operating income before depreciation, amortisation and impairment (EBITDA).
Definition: Operating income before depreciation, amortisation and impairment of property, plant and equipment and intangible assets in relation to net sales for the period.
Definition: Gross and operating income before amortisation of surplus values related to acquisitions.
Purpose: As Vitrolife's gross and operating income is significantly impacted by the amortisation of surplus values related to the acquisitions that the company has carried out, it is management's assessment that it is appropriate to illustrate the Group's profitability and earning capacity by presenting gross and operating income adjusted for amortisation of these surplus values.
Definition: Adjusted gross and operating income in relation to net sales for the period.
Definition: Net income for a rolling 12 months in relation to average equity for the period. (Average is calculated on the last four reported quarters). Purpose: It is Vitrolife's assessment that return on equity is an appropriate measure to illustrate to stakeholders how well the Group invests its equity.
| SEK millions | 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
|---|---|---|---|
| Average equity | 9,692 | 2,003 | 6,350 |
| Net income, rolling 12 month | 305 | 352 | 341 |
| Return on equity, % | 3.1 | 16.2 | 5.4 |
Definition: Current and non-current interest-bearing liabilities, adjusted for IFRS 16 effect, minus interest-bearing receivables minus cash and cash equivalents.
Purpose: One of Vitrolife's financial objectives is to have a strong financial capital base to enable continued high growth, both organic and through acquisitions. In connection with the entry into force of IFRS 16 on 1 January 2019, the key ratio definition has been reformulated as financial liabilities related to leases are not included in the net debt calculation.
Definition: Net debt in relation to EBITDA rolling 12 months.
Purpose: One of Vitrolife's financial objectives is to have a strong financial capital base to enable continued high growth, both organic and through acquisitions. In relation to this, Group management follows up the ratio of net debt in relation to rolling 12-month operating income before depreciation, amortisation and impairment (EBITDA). According to Vitrolife's financial objectives, this ratio should normally not exceed three times. Management assesses that this ratio gives creditors and investors important information concerning the Group's attitude to debt.
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK millions | 2022 | 2021 | 2021 |
| Borrowings, non-current | 1,901 | – | 1,945 |
| Lease liabilities, non-current | 82 | 47 | 82 |
| Borrowings, current | 442 | – | 429 |
| Lease liabilities, current | 32 | 13 | 27 |
| Adjustment of lease liabilities | -114 | -60 | -110 |
| Cash and cash equivalents | -583 | -1,118 | -630 |
| Net debt | 1,761 | -1,118 | 1,743 |
| Operating profit, rolling 12 month | 426 | 419 | 435 |
| Depreciation, amortisation and impairment, rolling 12 month |
183 | 82 | 109 |
| Rolling 12 month EBITDA | 610 | 501 | 544 |
| Net debt/EBITDA rolling 12 month | 2.9 | -2.2 | 3.2 |
Definition: Equity and minority interest in relation to total assets. Purpose: The ratio shows the proportion of the Company's total assets financed by equity. A high equity/assets ratio is a measure of financial strength and is used to measure target achievement.
Definition: Current assets excluding cash and cash equivalents minus current non-interest-bearing liabilities.
Purpose: This measure is used to show how much capital is needed to finance current business operations.
Definition: Cash flow for the period from current business operations divided by the average number of shares outstanding for the period. Purpose: This measure is used to show the cash flow generated by the company's current business operations per share.
Definition: Equity divided by the number of shares outstanding on the closing date.
Purpose: This measure shows the company's net value per share and determines whether a company increases shareholders' net worth over time.
Definition: Income for the period attributable to Vitrolife's shareholders in relation to the average number of shares outstanding for the period.
Definition: Key ratios calculated from rolling 12-month values have been calculated from the past four rolling interim reports and accounts. Purpose: Rolling 12 months gives a clearer picture of sales or profitability and a fairer picture of a key ratio's development.
Definition: Organic growth is sales growth from existing business operations adjusted for acquisitions and divestments. An acquisition or a sale is only included in the calculation of organic growth when it is included for an equal number of months in the present period and the corresponding period the previous year. Otherwise it is included in the calculation of acquired growth.
Purpose: Organic growth excludes the effects of changes in the Group's structure, thus enabling a comparison of net sales over time.
Definition: Growth in local currencies is sales growth adjusted for currency effects, which is calculated as sales for the period in local currencies recalculated at a predetermined exchange rate in relation to the corresponding period the previous year in local currencies recalculated at the same exchange rate.
Purpose: As a large part of Vitrolife's sales are in other currencies than the reporting currency of SEK, sales are not only impacted by actual growth, but also by currency effects. To analyse sales adjusted for currency effects, the key ratio of sales growth in local currency is used.
The percentage effects in the following tables are calculated as each amount in SEK millions in relation to net sales in the same period previous year (as shown in Note 4).
| January – March 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Consumables | EMEA | Americas | Japan Pacific | Asia | Total | ||
| Organic growth in local currency, SEK millions | 10 | 12 | 7 | 15 | 44 | ||
| Organic growth in local currency, % | 9 | 21 | 20 | 32 | 18 | ||
| Currency effects, SEK millions | 5 | 8 | 1 | 6 | 20 | ||
| Currency effects, % | 5 | 14 | 4 | 13 | 8 | ||
| Total growth, SEK millions | 15 | 19 | 8 | 22 | 64 | ||
| Total growth, % | 14 | 35 | 24 | 45 | 26 |
| January – March 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Technologies | EMEA | Americas | Japan Pacific | Asia | Total | |||
| Organic growth in local currency, SEK millions | 22 | 9 | -15 | -19 | -2 | |||
| Organic growth in local currency, % | 44 | 149 | -36 | -51 | -1 | |||
| Currency effects, SEK millions | 3 | 2 | 1 | 1 | 7 | |||
| Currency effects, % | 6 | 24 | 2 | 4 | 5 | |||
| Total growth, SEK millions | 26 | 11 | -14 | -17 | 5 | |||
| Total growth, % | 50 | 173 | -35 | -47 | 4 |
| January – March 2022 | |||||
|---|---|---|---|---|---|
| Genetic Services | EMEA | Americas | Japan Pacific | Asia | Total |
| Acquired growth, SEK millions | 101 | 137 | 24 | 20 | 281 |
| Acquired growth, % | n/a | n/a | n/a | n/a | n/a |
| Currency effects, SEK millions | 4 | 17 | 0 | 2 | 23 |
| Currency effects, % | n/a | n/a | n/a | n/a | n/a |
| Total growth, SEK millions | 105 | 154 | 24 | 22 | 304 |
| Total growth, % | n/a | n/a | n/a | n/a | n/a |
| January – March 2022 | |||||
|---|---|---|---|---|---|
| Total | EMEA | Americas | Japan Pacific | Asia | Total |
| Organic growth in local currency, SEK millions | 32 | 21 | -8 | -3 | 42 |
| Organic growth in local currency, % | 21 | 34 | -11 | -4 | 11 |
| Acquired growth, SEK millions | 101 | 137 | 24 | 20 | 281 |
| Acquired growth, % | 64 | 221 | 32 | 23 | 74 |
| Currency effects, SEK millions | 12 | 26 | 2 | 10 | 50 |
| Currency effects, % | 8 | 43 | 3 | 11 | 13 |
| Total growth, SEK millions | 146 | 184 | 17 | 26 | 373 |
| Total growth, % | 92 | 298 | 23 | 31 | 98 |
| 21 Interim Report January–March 2022 Vitrolife AB (publ), corp. id. no. 556354-3452 | ||
|---|---|---|
The following explanations are intended to help the reader to understand certain specific terms and expressions in Vitrolife's reports:
Using biological systems (living cells, organs or animals) to test how well a product or input material functions in relation to a requirement specification.
Removal of one or several cells from living tissue for diagnostic evaluation.
Combination of biology and technology, which primarily means using cells or components from cells (such as enzymes or DNA) in technical applications.
An embryo at days 5-7 after fertilisation. Cell division has gone so far that the first cell differentiation has taken place and the embryo thereby now has two different types of cells.
Describes the process when new cells are added to tissue in order to treat a disorder.
An investigation in healthy or sick people in order to study the effect of a pharmaceutical or treatment method.
A fertilised and cell-divided egg.
A process that has been taken out from a cell to take place in an artificial environment instead, for example, in a test tube.
Biological processes in living cells and tissue when they are in their natural place in whole organisms.
Equipment for culture of embryos in a controlled environment.
Intra-Uterine Insemination, "artificial insemination". A high concentration of active sperms is injected in order to increase the chance of pregnancy.
Fertilisation between the woman's and the man's sex cells and cultivation of embryos outside the body.
Comprise devices used to make a diagnosis of a disease, treat a disease and as rehabilitation.
Preimplantation genetic testing for aneuploidy (PGT-A), also called preimplantation genetic screening (PGS), is a test for chromosome copy number that can be used during IVF to help determine the chromosomal status of an embryo from a biopsy of one or more cells. The results of PGT-A aid in the selection of an embryo likely to have a normal number of chromosomes (euploid) for transfer to the woman and help avoid those with abnormal copy number (aneuploid) that may result in IVF failure or miscarriage.
Preimplantation genetic testing for monogenic and single gene defects (PGT-M), also called preimplantation genetic diagnosis (PGD), is a test to find specific hereditary genetic diseases that are caused by a single defective gene. This test is used for couples who have a genetic mutation that can cause a genetic disease where the couple want to be sure that their child will not carry this disease.
Research that is done before a pharmaceutical or a treatment method is sufficiently documented to be studied in people, for example, testing of substances on tissue samples and later testing on experimental animals.
Technology for supervision of embryos. Pictures of the development of the embryo are taken in short time interval, then played as a film and analysed.
Process for converting a material to a glass-like solid state, for example, through rapid freezing, in this case rapid freezing of eggs and embryos, in order to be able to carry out IVF on a later occasion.
Vitrolife AB (publ) Vitrolife Sweden AB Box 9080 SE-400 92 Göteborg Sweden Tel +46 31 721 80 00 Fax +46 31 721 80 99
www.vitrolife.com
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