- Strong revenue and EBITDA growth; increased FY 2019 revenue forecast exceeded; EBITDA reaches upper end of guidance
- Revenue: +28% from EUR 50.7 million (2018) to EUR 64.7 million (2019)
- EBITDA more than triples to EUR 9.7 million compared to previous year (EUR 3.0 million); EBITDA margin rises to 13% of total income (14% of revenue)
- Above-average growth in high-margin Services business
- Optimistic outlook on 2020
va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a pioneer in highly efficient products and solutions in the thermal insulation and TempChain logistics area, reports a very successful 2019 financial year on the basis of preliminary results. va-Q-tec exceeded its original economic targets, in some cases significantly, and at the same time has already laid important foundations for the company’s future success by consistently implementing its strategy.
Stefan Döhmen, CFO of va-Q-tec AG: “Thanks to our very positive business trend, we significantly raised our initial growth forecast during the year. With 28% revenue growth for the year as a whole, we even slightly exceeded these expectations in terms of revenue. It is particularly pleasing that this growth is also reflected in our earnings. EBITDA in 2019 has more than tripled to just under EUR 10 million.”
Revenue in the 2019 financial year was up by 28% to EUR 64.7 million (previous year EUR 50.7 million). Total income amounted to EUR 72.9 million, reflecting 19% growth (previous year EUR 61.4 million). In the Systems area, sales revenues were up by 33% year-on-year, from EUR 11.3 million to EUR 15.1 million. A project order from kohlpharma, a pharmaceuticals reimporter, was of particular strategic significance for va-Q-tec in 2019. In the future, the va-Q-med® technology will ensure reliably constant temperatures during drug distribution, so that kohlpharma’s customers will receive temperature-sensitive drugs in top quality. The Services business generated EUR 29.8 million in revenues in the reporting period, an increase of 62% over the previous year. In this area, business with once small or new customers for the “Serviced Rental” of containers and boxes was significantly expanded. Overall, va-Q-tec benefited from a significant expansion of its customer base. At EUR 18.4 million, revenue in the Products business was down slightly on the strong prior-year basis (previous year: EUR 20.1 million). In the refrigerator and freezer area, end-markets are feeling increasing competitive pressure from Asia and Eastern Europe.
Earnings before interest, tax, depreciation and amortization (EBITDA) reported a marked increase to EUR 9.7 million (previous year EUR 3.0 million, +222%). The EBITDA margin measured in terms of total income consequently stood at 13% in the reporting period, compared with 5% in the previous year. In relation to revenue, this represents a 14% margin, compared to 6% in the previous year. In addition to the growth in the high-margin Services business, the successful implementation of the “Power 20+” program also contributed to the operating efficiency enhancement. In this context, cost efficiency in purchasing and production as well as sales processes in the Services business were improved.
Dr. Joachim Kuhn, CEO and founder of va-Q-tec AG, comments: “Our positive business performance reflects fundamental trends such as climate protection and energy efficiency, which are of greater concern to society and business today than ever before. For va-Q-tec as a pioneer in the energy efficiency area and thanks to our vacuum insulation technology, we identify the greatest potential in the coming years in the “TempChain Logistics” area – in other words, safe transport solutions for temperature-sensitive products. With our TempChain portfolio, we create temperature stability for our customers in what is currently the largest life science application area during transport, production and storage of the products, thereby making a significant contribution to product safety and quality.” Business with customers from the Healthcare & Logistics sector already accounts for 69% of va-Q-tec’s sales. However, the company is not only a recognized partner of the life science industry. Its solutions can be deployed wherever sensitive goods need to be transported or stored safely and at a stable temperature. Furthermore, va-Q-tec is working on thermal solutions for the mobility of the future: thanks to their thin and flexible construction, va-Q-tec vacuum insulation panels are finding completely new application areas in the automotive and aerospace industries.
va-Q-tec 2019 has also continued on its internationalization course. The subsidiaries in the USA and Switzerland have performed well and are making growing contributions to revenue. The subsidiaries in Uruguay and Singapore, which were not established until 2018, have already contributed to Group revenue. va-Q-tec has an international network of seven subsidiaries in total.
In view of market trends and the consistent implementation of the strategy, Dr. Kuhn is very confident about the future: “The very significant improvement in our business results in 2019 underscores our excellent position as a technology leader in structurally growing markets. Current developments, such as the coronavirus outbreak, show that we are already able to help and assist in a concrete way and further illustrate demand for the technology. va-Q-tec contributes with its innovative solutions to maintain the supply of essential drugs to people. Fundamentally, we continue to look to the market potential of our technology with optimism for 2020 and beyond.”
va-Q-tec will publish its final audited results for 2019 and its forecast for the 2020 financial year with its annual report on 27 March 2020.
The latest financial release can be found here.