va-Q-tec reports continued dynamic growth in Q1 2022 accompanied by planned significant free cash flow improvement

Würzburg, 10 May, 2022: va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a pioneer in highly efficient products and solutions in the thermal insulation (so-called super insulation) and temperature-managed supply chains (so-called TempChain logistics) area, reports further very strong revenue growth in Q1 2022. With a 25 % increase in revenues to EUR 28.0 million (previous year: EUR 22.4 million), the previous quarters’ high growth momentum was confirmed again. This strong growth was mainly driven by the Services and Systems divisions. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to EUR 3.9 million compared to a strong EUR 4.6 million in Q1 2021 (-16 %). The EBITDA margin thereby amounted to 13 % in relation to total income (previous year: 16 %). The Management Board expects the earnings trend to increasingly normalize over the course of the year in line with the anticipated expansion of business activities.

For the individual divisions of va-Q-tec AG, the overall trend was as follows: the Services business, which comprises the container and box rental business for the transport of temperature-sensitive goods mainly from the pharmaceutical and biotech sector, recorded strong year-on-year growth of 48 % to EUR 13.1 million in Q1 2022 (Q1 2021: EUR 8.8 million). Overall, va-Q-tec benefited from a broadening of its customer base, particularly in the area of airfreight thermal containers, as well as a significant increase in the number of small thermal box rentals for “last mile” shipments. In the Systems division (sale of thermal packaging systems), revenues were up by 29 %, from EUR 6.8 million in the previous year to EUR 8.8 million. In particular, business with the va-Q-pal SI performed very well. In the Products division (sale of vacuum insulation panels and phase change materials), revenues of EUR 5.5 million were down compared with the previous year’s very strong basis (previous year: EUR 6.3 million). In the prior-year quarter, this business area had still benefited strongly from significantly higher demand for energy-efficient refrigerators and freezers in consumer markets, primarily associated with the “stay-at-home” trend and the introduction of the new energy efficiency label for household appliances.

Overall earnings performance was impacted by higher other operating expenses, in particular by a sharp rise in transport and logistics costs, internationalization costs as well as a significant increase in travel and trade show activity. Higher energy costs also had a negative bearing on profitability in the first quarter. Moreover, personnel expenses rose, as expected, in order to support further growth. In this context, investments in self-produced containers for the global fleet and the expansion of production capacities were scaled back to normal levels following a strong expansion in the previous year, as planned. At the same time, operating cash flow improved to EUR 2.1 million (Q1 2021: EUR 1.3 million). As a consequence, free cash flow improved significantly by EUR 3.7 million year-on-year and was positive in Q1 2022.

The worldwide expansion continued with the establishment of two new subsidiaries in India and Brazil. The founding of the new subsidiary in India is primarily aimed at further expanding international presence in the TempChain area in the context of the high rate of growth of India’s pharmaceutical industry. The new site in São Paulo, Brazil, enables va-Q-tec to optimize the availability of TempChain solutions. Overall, with the founding of va-Q-tec do Brazil, the company has now established a network of nine subsidiaries worldwide and is consistently pursuing its global expansion strategy.

Dr. Joachim Kuhn, CEO of va-Q-tec AG, comments: “Overall, revenue growth in the first quarter of 2022 was very gratifying despite the challenging macroeconomic environment, thanks to our highly sought-after product and service portfolio. Our dynamic business growth continued with revenues up 25 %. The share of Corona business decreased significantly compared to the previous year. va-Q-tec is not only valued as a reliable partner in the healthcare & logistics sector, but increasingly also in numerous other areas such as technology and industry, in the construction industry and in the mobility sector. For example, our products can be deployed in pipeline insulation, building insulation and the high-tech insulation of electric vehicles. We were particularly pleased that our innovative vacuum insulation panel va-Q-steel was named Product of the Year 2022 in Q1 2022 by the leading industry magazine ‘TI Technical Insulation’ (‘Technische Isolierung’). This award underscores va-Q-tec’s expertise in the area of high-tech insulation and the company’s high level of innovation.”