Cryo-Save Group N.V.: Q1 Trading Update - Operating results in line with Q1 2012
Cryo-Save Group N.V. (Euronext: CRYO, 'Cryo-Save', or 'the Group'), the leading
international stem cell storage company and the largest family stem cell bank in
Europe, announces its trading update for the quarter ended 31 March 2013.
Operating results during the first quarter of 2013 of -â‚¬0.6 million were at a
similar level as the first quarter of 2012. The top line performance was at a
lower level in comparison to the first quarter of 2012, but the Group was able
to achieve significant cost savings.
Almost half of the operating loss was attributable to India, where the Group
expected a better performance this first quarter. According to plan the
performance of the Indian entity will improve in this second quarter, and break
even on a full year basis. To achieve this, Cryo-Save appointed a new General
Manager in November last year, strengthened the organization and repositioned
itself in the Indian market, focusing on fully automated, high quality services.
The result of the Group's operations in South Africa was impacted by
consequences of the opening of the new processing and storage facility in
Pretoria in January 2013, but is expected to be profitable as of Q2. Finally,
due to the on-going economic crisis in the Group's main European markets, Cryo-
Save is facing a lower demand.
The Q1 2013 operating loss forced Cryo-Save to take important cost saving
measures across the Group to improve the result. Management has identified
opportunities for a temporary freeze of certain cost in addition to sustainable
cost savings across the Group on staffing and suppliers. The impact on the total
cost will be visible as of Q2 2013. At the same time the Group is reworking its
communication platform and implementing a more end-customer oriented sales and
Arnoud van Tulder, Chief Executive officer, commented:
"The economic conditions in our major markets did not change during the first
quarter of this year, and continued to have a negative impact on our
performance. Following the turnaround in India, the impact of the new cost
savings measures and a more end-customer oriented sales & marketing approach, we
expect a better result during the second half of 2013.
"The stem cell transplantation in Spain in April this year for the treatment of
Blackfan-Diamond Anaemia using umbilical cord blood stem cells that were stored
at Cryo-Save underscores the important role our services play in the treatment
of serious debilitating diseases."
Â·Â Â Â Â Â Â Â Â Revenue of â‚¬8.1 million (Q1 2012: â‚¬9.6 million)
Â·Â Â Â Â Â Â Â Â Gross profit of â‚¬5.1 million (Q1 2012: â‚¬6.3 million)
Â·Â Â Â Â Â Â Â Â Operating expenses before depreciation and amortisation of â‚¬4.9
million (Q1 2012: â‚¬6.0 million)
oÂ Â Â Decrease due to the impact of the cost saving program as announced in June
Â·Â Â Â Â Â Â Â Â EBITDA(*): â‚¬0.2 million (Q1 2012: â‚¬0.3 million)
Â·Â Â Â Â Â Â Â Â EBITA(**): -â‚¬0.2 million (Q1 2012: -â‚¬0.2 million)
Â·Â Â Â Â Â Â Â Â Operating result: -â‚¬0.6 million (Q1 2012: -â‚¬0.6 million)
Â·Â Â Â Â Â Â Â Â Net result: -â‚¬0.7 million (Q1 2012: -â‚¬0.7 million)
Â·Â Â Â Â Â Â Â Â Another tranche of 121,597 shares was repurchased under the Group's
share buyback program
(*) EBITDA is defined as Earnings Before Interest, Taxation, Depreciation, and
(**) EBITA is defined as Earnings Before Interest, Taxation and Amortisation of
identified intangible assets
Â·Â Â Â Â Â Â Â Â 7,700 new samples stored in the first quarter of 2013 (Q1 2012: 9,300)
Of these, 4,500 were new cord blood samples and 3,200 new cord tissue samples
Â·Â Â Â Â Â Â Â Â 246,000 samples have been stored in total at 31 March 2013
Â·Â Â Â Â Â Â Â Â 71% of new customers opt for combined service of cord blood and cord
Â·Â Â Â Â Â Â Â Â Cryo-Save strengthened its management team with the new Chief
Commercial Officer, Ms Evi Mattil
Highlights after 31 March 2013 were:
Â·Â Â Â Â Â Â Â Â A stem cell transplantation in Spain to treat Blackfan-Diamond
Anaemia. It is the first time in Spain that this congenital anaemia, classified
as a rare disease, has been treated using cord blood stem cells. Â These
umbilical cord blood stem cells were stored with Cryo-Save. The transplantation
was successful, and the 4 year-old child is expected to make a normal recovery.
This may herald a radical improvement in the child's quality of life, as since
his birth he has required regular red blood cell transfusions.
Enquiries: Cryo-Save Group + 31 (0) 575 509 100
Arnoud van Tulder, Chief Executive Officer
About Cryo-Save (www.cryo-save.com/group)
Cryo-Save, the leading international family stem cell bank, stores more than
225,000 samples from umbilical cord blood and cord tissue. There are already
many diseases treatable by the use of stem cells, and the number of treatments
will only increase. Cryo-Save has cryopreserved samples from over 70 countries
on six continents, with ultra-modern processing and storage facilities in
Belgium, Germany, Dubai, India and South Africa.
Click here for PDF press release:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Cryo-Save Group N.V. via Thomson Reuters ONE