va-Q-tec continues on growth track in the first three quarters of 2020

va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a pioneer in highly efficient products and solutions of thermal insulation (super insulation) and temperature-controlled supply chains (TempChain logistics), remains on its clear growth track at the end of the first nine months of 2020. This growth was driven mainly by higher revenues generated with healthcare sector customers, which now account for a 75% share of revenues (previous year: 68%). Among other factors, va-Q-tec has benefited from the high demand of transport solutions for the worldwide shipment of several hundred million coronavirus test kits since April. Future transports of CoVid-19 vaccines also offer va-Q-tec additional growth prospects.

Revenue in the first three quarters of 2020 reported an overall increase of 13% to EUR 53.2 million (previous year: EUR 47.3 million). va-Q-tec recorded significant revenue growth in its Systems division (sale of thermal packaging) with a 51% increase to EUR 14.4 million (previous year: EUR 9.6 million). The Services division (rental of thermal packaging) also performed very well, with revenue up 16% to EUR 24.8 million. This more than offset CoVid-19-related revenue reductions in the Products division (sale of vacuum insulation panels). Revenue in this division was down by 16% to EUR 12.9 million (previous year: EUR 15.4 million), but reports an uptrend at end of Q3.

Earnings before interest, tax, depreciation and amortization (EBITDA) reported an increase of 34% year-over-year, rising from EUR 6.7 million to EUR 9.0 million, and thereby outstripping the rate of revenue growth. As a result, the EBITDA margin increased from 14% to 17% in relation to revenue compared to the same period last year. Adjusted for the higher level of foreign currency losses, EBITDA would have risen by EUR 2.9 million year-over-year, from EUR 6.7 million in the previous year to EUR 9.6 million (+44%). This corresponds to an adjusted EBITDA margin of 16% in relation to total income compared to 13% in the prior-year period. In terms of revenues, it would represent an improvement from 14% in 9M 2019 to 18% in 9M 2020. Earnings before interest and tax (EBIT) also showed a strong improvement, amounting to EUR -0.2 million compared with EUR -2.3 million in the same period of the previous year. Adjusted for the higher level of foreign currency losses, EBIT would even have risen to a positive level of EUR 0.5 million (Delta: EUR +2.8 million).

va-Q-tec has already been preparing for a large number of vaccine transports since the summer. Potential CoVid-19 vaccines require constant temperatures of down to -70 degrees Celsius during transport. va-Q-tec transport containers and boxes ensure the temperature of the vaccines for up to 120 hours, even under extreme external temperatures and independent of expensive and often insecure external energy supply. For this reason, va-Q-tec will significantly expand its container fleet over the coming months in anticipation of orders for the transport of CoVid-19 vaccines. Additional investments will be attributed to the technical infrastructure of the Group’s own worldwide TempChain network. Two new TempChain Service Centers were opened in Kansas City and Glasgow in September. Four further stations on three continents will follow in the next few months.

Dr. Joachim Kuhn, CEO of va-Q-tec AG, comments on the positive business trend and the Group’s future prospects: “Despite the global economic crisis in the wake of the CoVid-19 pandemic, to date we have maintained our growth course as planned. And not only that: with our solutions for secure and energy-efficient temperature-controlled transport, we are continuing to make an active contribution to the fight against CoVid-19. Having already demonstrated our expertise in the transport of coronavirus test kits, we are confident that we will play a significant role in the upcoming distribution of coronavirus vaccines thanks to positive discussions with major vaccine manufacturers.”