Cryo-Save Group N.V. – Revenue up 4% to €41.9 million (20/03/2012)

Cryo-Save Group N.V. (Euronext: CRYO, ‘Cryo-Save’, or ‘the Group’), the leading international stem cell storage brand and the largest family stem cell bank in Europe, has published its financial results for the year ended 31 December 2011.

Financial highlights
• Revenue up 4% to €41.9 million (2010: €40.4 million)
• Operating expenses before depreciation and amortisation increased with €1.6 million mainly due to further investments in Cryo-Lip® (€0.8 million) and acquisition impact (€0.7 million)
• EBITDA*: €6.3 million (2010: €7.3 million)
• EBITA**: €4.5 million (2010: €5.8 million)
• Operating profit: €2.9 million (2010: €4.5 million)
• Profit before taxation: €3.0 million (2010: €3.9 million)
• Net profit: €2.3 million (2010: €2.6 million)
• Basic earnings per share 25.0 euro cents (2010: 27.6 euro cents)
• Robust net cash from operating activities €6.2 million (2010: € 2.8 million)
• Solid cash position of €7.0 million as at 31 December 2011 (2010: €6.0 million)
• Dividend per share of €0.08, up 14% (2010: €0.07)

* EBITDA is defined as Earnings Before Interest, Taxation Depreciation and Amortisation
** EBITA is defined as Earnings Before Interest, Taxation and Amortisation of identified intangible assets

Operational highlights
• 39,900 new samples stored in 2011, up 4% compared to previous year (2010: 38,300). Of these, 25,200 were new cord blood samples and 14,700 new cord tissue samples
• 204,000 samples have been stored in total at 31 December 2011
• 67% of new customers opt for combined service of cord blood and cord tissue storage
• Acquisition of Serbian distributor Life R.F. for €2.3 million in cash and 30,000 Cryo-Save shares
• Cryo-Save USA founded, to commercialize and develop the Cryo-Lip® service in North America
• Cryo-Save South Africa joint venture established and stem cell processing and storage laboratory opened in Cape Town together with John Daniel Holdings and Lazaron Biotechnologies
• A six-year-old girl from Portugal with Cerebral Palsy was treated at Duke University in the US with her own cord blood stem cells, which were stored and released by Cryo-Save

Outlook
• Cryo-Save has a strong strategic position and product portfolio to further enhance its business
• Cryo-Save will continue to collaborate with new partners and make acquisitions in line with its strategy to grow in current markets as well as in new geographies
• Promising developments continue in the use of stem cell technology in the treatment of diseases. Thus enhancing the added value of Cryo-Save’s high-tech storage solutions of stem cells
• Fast growing fields of cellular therapy and regenerative medicine offer further attractive market potential for Cryo-Save 
• The Group is confident it will continue to maintain its market leading position as the leading international stem cell storage brand and the largest family stem cell bank in Europe


Revenue increased with €1.4 million to €41.9 million, largely due to increased sales volumes in several countries, acquisitions and increased number of new cord tissue samples, partly offset by lower business volume in mainly Southern Europe. The impact of the economic crisis also resulted in a significantly lower number of births in almost all countries. An increasing demand for discounts on the service fee and instalment plans to facilitate the payment of the service fee has been another factor affecting revenue growth.
The gross profit margin decreased with 1% to 66.6%, among others due to an increased demand for higher reimbursements of the collection of the umbilical cord blood and cord tissue in the hospitals.
The gross profit margin remained at the same level compared to the second half of 2010 (66.5%).
Operational expenses increased with €1.6 million due to incremental expenses related to Cryo-Lip® (€0.8 million), and the impact of the acquisitions of Tissue Bank Cryo Center Bulgaria AD (“TBCCB”) and Life R.F. doo, Serbia (“Life”) (€0.7 million).


The acquisitions also impacted the amortization of intangible assets which increased by €0.3 million. Finally, depreciation increased by €0.1 million as a result of the impact of investments in property, plant and equipment such as the dual storage location and the new processing and storage facility in Cape Town, South Africa. Operating profit was therefore €2.9 million (2010: €4.5 million).
Due to improved financial result and the reduced effective tax rate, net profit for the year was €2.3 million compared to €2.6 million in 2010.

 
Arnoud van Tulder, Chief Executive officer, commented:
“We are pleased to report revenue growth notwithstanding the challenging economic times. Our strong product portfolio and geographical spread once more confirms our ability to absorb such business challenges.
“Because of our leading role in the stem cell storage industry, Cryo-Save has developed multiple educational programs aimed at increasing global awareness about current treatments and future promising applications. Everyone should be aware of the important progress being made by applying stem cells in different medical areas and the resulting benefits of storing stem cells.”

 

 

Full Press Release

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Contact details                For more information on Cryo-Save visit
Cryo-Save Group N.V.        www.cryo-save.com/group, or contact Investor Relations
IJsselkade 8                      at ir@cryo-save.com
7201 HB Zutphen
The Netherlands
+31 (0)575 548998


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