Vita 34 continues positive trend in the first half of 2024 and once again significantly increases operating cash flow

• Revenues increase by 4.9 percent to EUR 38.0 million in the first half of the year
• EBITDA increases by 76.4 percent to EUR 2.7 million
• Operating cash flow increases significantly to EUR 4.3 million
• Outlook for full-year 2024 confirmed

Leipzig, 30 August 2024 – Vita 34 AG, the leading cell bank in Europe and the third largest in the world, continued to improve its business performance in the first half of 2024, reaching the sixth quarter of consecutive growth. Despite the general economic environment remaining challenging, the Company managed to significantly increase its results and operational cash flow.

Revenues increased by 4.9 percent to EUR 38.0 million in the first half of the year (H1 2023: EUR 36.3 million), with growth of 6.0 percent in the second quarter alone. At EUR 35.9 million, the net amount of invoiced services in the end customer business (B2C) was 13.1 percent higher than in the previous year (H1 2023: EUR 31.7 million). The amount attributable to annually recurring payments of EUR 11.0 million was 8.1 percent higher than in the previous year (H1 2023: EUR 10.1 million). In the second quarter, the Group faced a slightly lower than expected number of new customer wins, while selective markets such as Romania, Switzerland and the GCC region performed quite well. The latter once again underlined the attractiveness of this growth region with significant double-digit growth rates and a significant improvement in financial results. In addition, demand for renewals of expiring contracts remained strong and continued to grow. In parallel with this ongoing positive trend, the Company managed to offset the impact of inflation through price adjustments and the sale of higher-value product bundles, resulting in year-on-year revenue growth in most markets.

At EUR 2.7 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were up 76.4 percent on the previous year (H1 2023: EUR 1.6 million). As a result, the EBITDA margin continued to recover and, at 7.2 percent, was significantly higher than the previous year’s level of 4.3 percent. The Company continues to focus on improving its cost base and accordingly, further post-merger integration steps were completed in the past quarter as planned. Further progress was made in consolidating subsidiaries, thereby leveraging further synergies within the Group. A slightly higher cost basis in the second quarter as compared with the prior year was mainly related to the earlier convening of the Annual General Meeting, and thus also a higher share of administrative costs, as well as legal costs related to the licensing dispute in the US.

The key figures for business development are as follows:

The solid revenue and earnings performance is once again reflected in a very positive development of the operating cash flow. At EUR 4.3 million, this increased by 48.8 percent compared to the previous year (H1 2023: EUR 2.9 million). In addition to a favorable development of the income tax rate, high demand for renewals of expired contracts contributed to this development. As an increasing proportion of the contract portfolio will be up for renewal in the coming years, the Management Board expects this positive trend to continue.

In the CDMO division, the Company was able to recruit a proven expert, who started preparation of a new strategy for this area as the new division head. The Management Board are correspondingly confident about the further development of this business area in the second half of the year. In the area of Cell & Gene Therapies, the Group reached an agreement with the US licensor. The new know-how license agreement is limited in scope and includes technology and know-how previously transferred by the licensor to FamiCordTx and PBKM. The know-how license agreement secures access to the CAR-T technology, which is particularly needed for the modified projects, and provides for lower royalty payments by FamiCordTx and PBKM in the event of commercial use or sale without milestone payments.

Based on the positive business performance in the first half of the year, the Management Board confirms the outlook for the full-year 2024, which assumes revenue of between EUR 81 million and EUR 88 million and EBITDA of between EUR 6.5 million and EUR 8.0 million. The outlook is based on a constant exchange rate of the euro against the Polish zloty and other currencies (HUF, RON, TRY, GBP) compared to 29 April 2024.

The Management Board of Vita 34 AG will be available to institutional investors, analysts and representatives of the press today at 2:00 p.m. in a video conference to provide additional information on the business development. Registration for this is by e-mail via the Investor Relations department (ir@vita34.de).

Contact:
Vita 34 AG
Investor Relations
Phone: +49 (0341) 48792 – 40
Email: ir@vita34.de

Company Profile

Vita 34 was founded in Leipzig in 1997 and today is by far the leading cell bank in Europe and the third largest worldwide. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has since offered the collection logistics, processing and storage of stem cells from umbilical cord blood, umbilical cord tissue and other postnatal tissues as a full-service provider for cryopreservation. Due to the expansion of the business model following the merger with PBKM, the company intends to invest in the areas of Cell & Gene therapies and CDMO. The body’s own cells are a valuable starting material for medical cell therapy and are kept alive in the vapor of liquid nitrogen. Customers from about 50 countries have already provided for the health of their families with around one million units of stored biological material at Vita 34.

RESULTS HIGHLIGHTS:

● The Revenue for the six months ended 30 June 2024 (“the Period”) was approximately HK$1,701.8 million, representing an increase of about 6.3% compared to the same period last year. Notably, the major European market accounted for 48.4% of the Group’s total, with sales growing by 16.2% compared to the same period last year.

● The Gross Profit Margin for the Period was approximately 53.7%, with a gross profit of about HK$914.0 million, represents an increase of approximately 5.4% compared to the same period last year.

● The Group’s Adjusted EBITDA for the Period was approximately HK$388.6 million, representing an increase of approximately 5.1% as compared to the same period last year.

● The profit from the Group’s core business for the Period was approximately HK$225.5 million, representing a growth rate of 7.2% compared to the same period last year.

● The Group’s Net Profit for the Period was approximately HK$214.4 million, representing an increase of approximately 1.9% as compared to the same period last year.

● With respect to the Group’s EBITDA and Net Profit for the Period, it should be noted that the figures reflect: (i) one-off cost in connection with potential acquisitions of approximately HK$2.8 million; and (ii) one-off cost in connection with Shenzhen and Vietnam production facility relocations of approximately HK$10.2 million.

● Basic earnings per share for the six months ended 30 June 2024 amounted to HK$22.59 cents.

● The Board declared an interim dividend of HK8.0 cents per ordinary share for the six months ended 30 June 2024.

● During the period under review, The Group’s digital solution cases (overseas and domestic) that are produced from its Mainland China production facilities increased to approximately 602,485 cases reflecting an increase of 61.1% as compared with the same period in 2023 as a result of our clients’ continued adoption of intra-oral scanners.

(29 August 2024, Hong Kong) – Modern Dental Group Limited (hereinafter referred to as “Modern Dental Group” or “the Group”, stock code: 03600.HK”), a leading global dental prosthetics provider, is pleased to announce the unaudited interim results for the six months ended 30 June 2024 (“the Period”).

During the six months ended 30 June 2024, although the macro-economic environment continues to be challenging, the Group’s multi-dimensional strategies and comprehensive products portfolio, encompassing higher-priced and cost-effective dental treatments, enabled the Group to capitalize on market opportunities by capturing new customers and increase its sales volume, displaying the Group’s ability to outperform its competitors throughout the economic cycle. The consolidation trend of the dental prosthetics industry is clearly continuing, and with the addition of our Vietnam production facility and Dongguan Phase 2 production facility – the Group has further improved its market positioning.

The Group’s continued sales increase represents a solid execution across each of the Group’s markets operationally and financially, illustrating the Group’s ability to deliver strong financial results in a relatively stable operating environment characterized by consistent order volume growth, competitiveness in the industry, and close relationship with its clients and customers. The Group’s underlying fundamentals continue to be solid and we are well-positioned to capture further opportunities going forward.

European Business

During the period under review, the European market recorded a revenue of approximately HK$822.9 million, representing an increase of approximately HK$112.9 million as compared with the six months ended 30 June 2023. This geographic market accounted for approximately 48.4% of the Group’s total revenue. The increase of revenue from the European market was attributable to the increase in sales order volume driven by the launch of new products, such as digital dentures, and our state-of-the-art digital workflows.

The Group has been the frontrunner providing comprehensive digital solutions offerings, ranging from numerous minimal invasive and aesthetic prosthetic solutions to intra-oral scanners and clear aligners, and is well positioned to capture the opportunities arising from the accelerated digitalization trend of the dental industry. The Group continues to aggressively gain market share from international and domestic competitors through our established dental ecosystem solutions with a focus on education and digitalization, which is available within close proximity to our clients; effectively meeting our clients’ high expectations through our various onshore and offshore resources.

North American Business

During the period under review, the North American market recorded a revenue of approximately HK$385.3 million. This geographic market accounted for approximately 22.6% of the Group’s total revenue.

Our clients’ interest surrounding digital dentistry continued to increase during the period. A significant portion of our business in the North America region comprises higher-end products manufactured domestically. With our centralized digital workflows and network oversight over our wide coverage of production units within the region, we are well positioned to support the customers’ needs through their digitalization journey, focusing on leveraging efficiencies and providing an enhanced customer experience throughout the network. Looking forward, the Group targets to utilize the Vietnam production facility to establish a new business unit specialized in serving mid/large scale dental clinic chains customers in the North American market.

Greater China Business

During the period under review, the Greater China market recorded a revenue of approximately HK$335.8 million. This geographic market accounted for approximately 19.7% of the Group’s total revenue. As a result of the increase in sales volume in the Mainland China market following the full implementation of the volume-based procurement policy in the Mainland China market gradually since the second half of 2023, our Mainland China business reported a sales growth of 9.5% in the Period compared to the same period last year but is offset by the depreciation of RMB against HK$ by 2.7%. However, this also led to aggressive promotions for dental implant treatments by Mainland China dental clinics in Hong Kong (which experienced a notable decrease in patient visits in Hong Kong).

The Group is optimistic in its mid/long-term outlook for this market in particular where the latest procurement-related government measures are expected to (i) standardize the pricing of dental prosthetics and develop price transparency, which would level the playing field; (ii) allow the Group’s leading brand name and reputation to be a key consideration for its client and customer; and (iii) have the Group benefit from its large production team and its ability to allocate resources efficiently according to the customer or client.

Australian Business

During the period under review, the Australian market recorded a revenue of approximately HK$127.9 million representing an increase of approximately HK$3.6 million as compared with the six months ended 30 June 2023. This geographic market accounted for approximately 7.5% of the Group’s total revenue. The increase of revenue from the Australian market was predominately due to the increase in sales volume as a result of the increase in market share driven by the digitalization trend in dental industry which is partially offset by the depreciation of AUD against HK$ by 2.8% compared with the six months ended 30 June 2023.

Through our various brands, which offer onshore-and offshore- made products, at multiple price points ranging from economy and standard to premium/boutique, the Group is able to effectively penetrate the entire Australian market.

Future Prospects

It is expected that the Group continues to consolidate the dental prosthetic market, and the Board is of the view that the consolidation trend is irreversible and clearly continuing. Therefore, notwithstanding any short- or medium-term challenges the global economy may face, the Board is confident that the Group is expected to outperform its competitors. In a year where some of the Group’s competitors had faced materially adverse issues, the Group continued to thrive and it is the Group’s ability to thrive during such uncertain economic conditions that give the Board comfort in its optimistic view of the Group.

Going forward, the Group aims to reinforce its worldwide leading position through opportunistic transactions including strategic co-operations, acquisitions, joint ventures and/or partnerships, to further expand and complement our product-offering (in particular, our clear aligner products), distribution and sales networks which will in turn, drive our business expansion. The Group continues to grow into more than just a one-stop shop dental prosthetic provider, but a full dental ecosystem to support our customers. The Group’s investment in Dongguan phase 2 and Vietnam production facilities are expected to provide the Group with greater production solutions and optionality which will in turn, increase the Group’s level of research and development in further enhancing our production and products.

Looking forward to 2024, with the Board’s extensive experience and determination to meet any short-term challenges, the Group is in an ideal position to take full advantage of, and will remain opportunistic in, any business opportunities whilst remaining cautious and prudent in safeguarding shareholders’ interests.

About Modern Dental Group

Modern Dental Group Limited (Stock code: 03600.HK) is a leading global dental prosthetics provider, distributor and consultant with a focus on providing custom-made prostheses to customers in the growing prosthetics industry. Our product portfolio is broadly categorized into three product lines: fixed prosthetic devices, such as crowns and bridges; removable prosthetic devices, such as removable dentures; and other devices, such as orthodontic devices, sports guards, clear aligners, and anti-snoring devices.

Modern Dental Group has a global portfolio of respected brands, including Labocast, Permadental and Elysee Dental in Western Europe, YZJ Dental in China, Modern Dental Lab in Hong Kong, Modern Dental USA in the United States, and Southern Cross Dental in Australia. We have grown these brands by providing premium and consistent quality products and superior customer service. We have more than 80 service centers in over 23 countries and serve over 30,000 customers.

MEDIA RELEASE

Medacta Enters Partnership with THINK Surgical for Robotic Total Knee Arthroplasty Solution

CASTEL SAN PIETRO, 29 August 2024 – Medacta Group SA (“Medacta”, SIX:MOVE), announces its partnership with THINK Surgical^®, an innovative leader in the field of open platform orthopedic robots, to provide its robotic, wireless hand-held TMINI^® Miniature Robotic System for total knee replacement surgery supporting both GMK Sphere and GMK SpheriKA, the world’s first knee implant designed specifically for Kinematic Alignment, a personalized and innovative technique that significantly increases patient satisfaction and facilitates a return to a healthy, active life¹.

“I am pleased to announce our collaboration with THINK Surgical in the US Market,” stated Matt Goudy, Managing Director and President of Medacta USA. “This partnership marks another step forward in our commitment to offering cutting-edge technologies that drive sustainable innovation forward and enhance our ability to deliver personalized solutions for surgeons and patients worldwide.”

The THINK Surgical TMINI system, when combined with GMK Sphere and GMK SpheriKA, adds further value to MyKA, the most comprehensive platform to safely and reproducibly perform Kinematic Alignment total knee replacement. Moreover, it complements the Medacta portfolio of enabling technologies designed for knee arthroplasty, providing surgeons with a robotic-assisted  option to execute meticulous 3D CT-based preoperative planning. This system will complement the MySolutions Personalized Ecosystem, a network of advanced digital solutions designed to improve patient outcomes and healthcare efficiency during the entire episode of care. This includes the flagship NextAR Augmented Reality Surgical Platform, a unique system that leverages patient-specific data to complement operative workflows, as well as MyKnee Patient Matched Technology and Efficiency KneePack, which is successfully used to provide patient-specific cutting blocks, single-use instrumentation, and implants in a single, one-time use kit.

While the MySolutions Ecosystem remains central to Medacta’s technology focus, the partnership with THINK Surgical will allow for the continued evaluation of robotics in the U.S. market, as well as Medacta’s specialized focus in the rapidly growing Ambulatory Surgery Center segment, in particular.

All Medacta products are supported by the comprehensive, tailored educational offerings provided by the M.O.R.E. Institute. With an international network of expert surgeons, the M.O.R.E. Institute is at the forefront of education with personalized, high-level educational pathways. With Medacta, the surgeon is never alone while discovering new technologies.

Contact

Medacta International SA
Gianluca Olgiati     
Group Vice President Marketing  
Phone: +41 91 696 60 60
media@medacta.ch

About Medacta

Medacta is a key global player specializing in the design, production, and distribution of innovative, personalized, and sustainable solutions for joint replacement, sports medicine, and spine surgery. Established in 1999 in Switzerland, Medacta is committed to improving the care and well-being of patients and maintains a strong focus on healthcare sustainability. Through close collaboration with expert surgeons globally, continuous investments in R&D, and the adoption of cutting-edge technologies, Medacta’s innovation prioritizes minimally invasive surgery and personalized solutions for every patient. Through the M.O.R.E. Institute, Medacta supports surgeons with a comprehensive and tailored program dedicated to the advancement of medical education. Medacta is headquartered in Castel San Pietro, Switzerland, and operates in over 60 countries. Follow us on Medacta TV, YouTube, LinkedIn and X.

RELATED TRADEMARKS

Medacta Group Related Trademarks are registered at least in Switzerland. The products and services listed below may not be all-inclusive, and other Medacta products and services not listed below may be covered by one or more trademarks. The below products and services may be covered by additional trademarks not listed below. Note that Swiss trademarks may have foreign counterparts. MySolutions™ Personalized Ecosystem, NextAR™, GMK^® SpheriKA, GMK^® Sphere, MyKA™, MyKnee^®.

THINK Surgical^® and TMINI^® are trademarks of THINK Surgical, Inc.

REFERENCE

[1] Niki Y, Nagura T, Kobayashi S, Udagawa K, Harato K. Who Will Benefit From Kinematically Aligned Total Knee Arthroplasty? Perspectives on Patient-Reported Outcome Measures. J Arthroplasty. 2020 Feb;35(2):438-442.e2. doi: 10.1016/j.arth.2019.09.035. Epub 2019 Sep 26. PMID: 31668528.

Asklepios Group: Positive development continued in the first half of 2024 – solid basis for further strategic development

• Consolidated revenue of EUR 2,902.6 million above previous year’s level
• Consolidated interim income EAT has improved at EUR 74.1 million
• Consolidated position as leading hospital operator in Germany

Hamburg, 29 August 2024. Asklepios Kliniken GmbH & Co. KGaA has performed consistently in a challenging environment in the first half of 2024. Asklepio’s measures to recruit specialist staff are having an impact and are leading to an increase in patient flows. Due to the significant increase in revenue compared to the previous year, the Group was able to achieve solid financial results in the months from January to June 2024. On this basis, the Group is pressing ahead with its further development in order to consolidate its position as a top-quality and economically sound healthcare provider in Germany.

The demand for the best possible medical care in the Asklepios Group’s hospitals remains at a high level: In the first six months of the current financial year, a total of 1,818,146 patients (6M.2023: 1,720,843) were treated in the healthcare facilities of Asklepios Kliniken. In the first six months of 2024, the Asklepios Group generated consolidated revenue of EUR 2,902.6 million (6M.2023: EUR 2,708.4 million), an increase of 7.2% compared to the previous year. The consolidated interim income after taxes (EAT) for the period from January to June 2024 amounted to EUR 74.1 million and was above the previous year’s comparable period (6M.2023: EUR 45.6 million). The EAT margin was 2.6% (6M.2023: 1.7%).

Thanks to its solid financial position, Asklepios is able to continue its investment strategy with the aim of aligning its hospitals with the new regulatory requirements. In the first half of 2024, Asklepios invested a total of EUR 150.5 million (6M. 2023: EUR 147.1 million). The net debt ratio (net financial debt/EBITDA LTM) was 3.1x and decreased compared to the previous year (31/12/2023: 3.3x).

Hafid Rifi, CFO: “Despite the effects of coronavirus, inflation and the energy crisis, as well as the high burden of financing the takeover of RHÖN at the beginning of 2020, our net debt ratio of 3.1x is almost at the same level as before.”

Well equipped to seize opportunities presented by hospital reform

The operational and economic development of clinics in Germany is characterised by the planned hospital reform. Asklepios covers the entire spectrum of medical services within the group of companies: From outpatient and inpatient to rehabilitative care after an operation, the Group’s clinics provide basic, standard, specialised and maximum care and through university hospitals, they are accessible far beyond the respective healthcare region.

Joachim Gemmel, CEO of Asklepios Kliniken: “The transformation of the hospital landscape is a challenge for all providers. But it also offers us the opportunity to fully exploit our competitive strength. We are consistently pressing ahead with our further development in order to secure and expand our position as a quality leader. We are constantly investing in future areas such as digitalisation and automation to increase the quality of treatment.”

“Medical quality has always been of great importance and will become even more central with the planned hospital reform. We feel that our previous strategy of establishing uniform quality standards in the Group has been confirmed and we are well positioned for the upcoming changes,” commented CMO PD Dr. med. Sara Sheikhzadeh.

The integrated cooperation with MEDICLIN and RHÖN has enabled Asklepios to establish a platform to exploit economies of scale, create synergies and share expertise. While disadvantages are to be expected for individual hospitals, Asklepios as a group is in a resilient position to further advance the specialisation of clinics required as part of the hospital reform.

Marco Walker, CEO of Asklepios Kliniken: “Our performance in the first half of the year proves that we are working successfully despite difficult market conditions. With more than 160 healthcare facilities in association with MEDICLIN and RHÖN, we can offer the highest level of medical quality with the best possible economic conditions.”

Outlook

Business development in the first half of 2024 was influenced by the general price trend in the energy and raw materials sector, the shortage of skilled workers and the planned hospital reform. Asklepios reacted flexibly to these challenges and responded prudently to changes in medical or regulatory requirements in order to minimise potential effects.

As things currently stand, Asklepios will be able to continue its stable business performance in the second half of the financial year 2024. In view of the uncertainty surrounding economic development, it is difficult to make a definite forecast. Alongside the general cost trend, regulatory decisions in the hospital market will also have an impact. However, it is still Asklepios’ goal for the year as a whole to improve its operating result.

About Asklepios

Asklepios Kliniken is one of the leading private operators of hospitals and healthcare facilities in Germany. The hospital group stands for highly qualified care for its patients with a clear commitment to medical quality, innovation and social responsibility. On the basis of this, Asklepios has developed dynamically since it was founded more than 35 years ago. The group currently has 164 healthcare facilities across Germany. These include acute hospitals at all levels of care, university hospitals, specialist clinics, psychiatric and forensic facilities, rehabilitation clinics, care homes and medical centres. In the financial year 2023, over 3.5 million patients were treated in Asklepios Group facilities. The company has more than 68,000 employees.

IR contact:
Mirjam Constantin
Head of Corporate & ESG Reporting / Investor Relations
Asklepios Kliniken GmbH & Co. KGaA
Debusweg 3, 61462 Königstein-Falkenstein
Tel: +49 61 74 90-1166
Fax: +49 61 74 90-1110
ir@asklepios.com

PR contact:
Rune Hoffmann
Head of Corporate Communications & Marketing
Asklepios Kliniken GmbH & Co. KGaA
Rübenkamp 226, 22307 Hamburg
Phone: +49 40 1818-82 6630
Fax: +49 40 1818-82 6639 
presse@asklepios.com

Visit Asklepios on its website, on Facebook or on YouTube:
www.asklepios.com
gesundleben.asklepios.com
www.facebook.com/asklepioskliniken
www.youtube.com/asklepioskliniken

Subscribe to the Asklepios newsletter:
https://www.asklepios.com/konzern/newsletter-anmeldung/
Care blog: “We are care”

BRAIN Biotech AG presents strong cash position with its 9M reporting and is forecasting good sequential growth in the final quarter of the business year

• Cash on-hand at € 13 million
• Significantly improved operating cash-flow in the 9M
• Forecasting a sequentially strong BioProducts quarter in Q4 FY 23/24

August 29, 2024, Zwingenberg/Germany – BRAIN Biotech AG, a leading provider of integrated solutions for the biologization of industry, today published its 9M results of FY2023/2024.

Adriaan Moelker, CEO BRAIN Biotech AG. says: “Despite the flat year-on-year growth up to Q3, we are still executing well on our business plan in an environment of inflation, slow economic growth and sometimes unforeseen volatility. BRAIN is increasingly offering high value-added products and services to its customers, has now built a culture of strong operational execution as well as ongoing cost control. I am especially pleased by new key customers choosing BRAIN Biotech and Biocatalysts as their partner. These are further evidence that we are a proven partner in this competitive market and they will help drive our growth in the years to come. Our solid cash position forms a strong basis to keep delivering on our mid-term strategy.“

BRAIN Biotech AG has built up a strong cash position of € 13.0 million within the 9M period by successfully executing several refinancing operations, primarily with debt instruments.

Development of segments

Turnover in the BioProducts segment, which comprises the product business with specialty enzymes and other proteins, increased slightly from € 30.3 million to € 30.4 million in the reporting period. Total operating performance amounted to € 30.1 million and was therefore 2.0% lower than in the same period of the previous year. Turnover in the third quarter amounted to € 10.5 million, representing a dynamic increase of 11.1 % compared to the same period of the previous year (€ 9.5 million). Adjusted EBITDA in the BioProducts segment fell from € 3.3 million to € 3.0 million. This is mainly due to higher personnel costs resulting from the recruitment of new production staff for future growth and operating start-up costs for the commissioning of the second large-scale fermenter.

The BioScience segment that includes research-intensive custom solutions based on enzyme technology, strain development, bioprocess development and natural product screening reported generated sales of € 8.5 million in the reporting period, which corresponds to a decline of 10.9 % compared to the same period of the previous year (€ 9.6 million). This was due to project delays in the cooperation business in a weakening economic environment in contract research. Adjusted EBITDA decreased from € 0.4 million to € -0.3 million, mainly due to the lower sales revenue. Continued stringent project controlling and good general cost control were able to partially counteract the sales decline.

The BioIncubator segment, which covers revenues from own R&D projects or those initiated with partners increased turnover significantly from € 0.5 million to € 1.6 million in the reporting period compared to the same period of the previous year. In the second quarter of the financial year, a milestone was successfully achieved in the deucrictibant project (formerly PHA 121), making a significant contribution to sales growth. The strong sales growth is also reflected in the segment’s adjusted EBITDA, which improved from € -2.2 million in the previous year to € – 1.4 million. The segment continues to be characterized by high investments totaling € 2.3 million in the area of genome editing under the brand name Akribion Genomics.

The BRAIN Biotech Holding segment mainly includes personnel expenses and other expenses for Group administration, further development of the BRAIN Biotech Group, stock exchange listing and M&A activities. The adjusted EBITDA of the segment amounted to a negative € 2.5 million which is roughly in line with the prior year 9M period at € -2.4 million. Rigid cost control could partially compensate for rising service costs which are primarily due to the general inflation of labor costs.

The 9M period has seen a strong improvement of the operating cash flow from € -4.5 million in the period last year to € -2.7 million during this reporting period. This improvement was primarily driven by strong working capital control and stringent receivables management.

Key financials (first nine months of the financial year 2023/24)

1 Revenues + change in inventories + other income including R&D grants

2 The reconciliation from adjusted to unadjusted EBITDA can be found in the 9M report for the period October 1, 2023 to June 30, 2024

Further information

BRAIN Biotech AG 9M Report 2023/24:
https://www.brain-biotech.com/investors/financial-publications

About BRAIN Biotech

BRAIN Biotech AG is a leading provider of integrated solutions and products in the field of industrial biotechnology. The company specializes in enzymes and proteins, microbial production strains and bioprocesses for biotechnological production methods. BRAIN Biotech focuses on the growth markets of nutrition and life sciences as well as on innovative solutions for environment issues. BRAIN Biotech AG is the parent company of the international BRAIN Biotech Group. Its business activities are divided into three segments: 1. BioProducts: Production and sale of specialty enzymes and proteins; 2. BioScience: Customized solutions based on enzyme engineering, production strain and bioprocess development, and screening for bioactive compounds; 3. BioIncubator: Pipeline of research-intensive development projects. For production, the Group operates fermentation plants in the UK and other production facilities in continental Europe and the USA. BRAIN Biotech has been listed on the Frankfurt Stock Exchange since February 9, 2016 (ticker: BNN; ISIN DE0005203947 / WKN 520394). The company employs around 310 people and generated revenues of EUR 55.3 million in the fiscal year 2022/23. For more information, please visit or follow: https://www.brain-biotech.com, LinkedIn, X, Threads and YouTube.

Contact Media

Dr. Stephanie Konle
PR & Corporate Communications
Phone: +49 6251 9331-70
Email: stk@brain-biotech.com

Contact Investor Relations

Martina Schuster
Investor Relations
Phone: +49 6251 9331-69
Email: ms@brain-biotech.com

Disclaimer

This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN Biotech AG, and are based on information currently available to the management.

Forward-looking statements are no guarantees of future performance, and entail both known and unknown risks as well as uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Numerous factors exist that could influence the future performance of and future developments at BRAIN Biotech AG and the BRAIN Biotech Group. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, as well as other factors.

BRAIN Biotech AG does not undertake any obligation to update or revise any forward-looking statements.

SCHOTT Pharma delivers strong third quarter results and raises FY 2024 revenue guidance 

• Q3 2024 revenues up 21% yoy to EUR 268m at constant currencies
• Strong Q3 2024 EBITDA margin of 28.2% at constant currencies
• Share of strong-margin high-value solutions (HVS) at 53% in the first nine month of FY 2024
• SCHOTT Pharma increases revenue guidance for FY 2024 to 11% to 13% (previously 9% to 11%)

SCHOTT Pharma, a pioneer in pharma drug containment solutions and delivery systems, reported strong results in the third quarter of the fiscal year 2024¹ with revenues up 21% to EUR 268m at constant currencies (Q3 2023: EUR 221m). EBITDA at constant currencies increased even stronger by 37% year-on-year to EUR 76m, despite start-up costs for the expansion projects in Hungary and Serbia. This led to an improvement in the EBITDA margin of more than three percentage points to 28.2% at constant currencies (Q3 2023: 25.1%). As a result, SCHOTT Pharma increases its full-year 2024 revenue guidance. “Our very strong performance in the third quarter emphasizes that market dynamics are intact and that our strategy ideally positions us to take advantage of them. The result is a consequence of our excellent strategy execution based on major pharma trends. Once again, we were able to demonstrate the value of our trusted and long-standing partnerships with our customers, which enable us to understand and address current market needs,” said Andreas Reisse, CEO of SCHOTT Pharma.

“We achieved strong results in the third quarter, in both of our segments leading to our highest ever quarterly revenues and EBITDA. Based on the first nine months results, we have increased our revenue guidance for the fiscal year 2024. Despite the challenging market environment, which we are all facing, we now expect revenue growth of 11% to 13%,” said Dr. Almuth Steinkühler, CFO of SCHOTT Pharma.

Further acceleration of growth through consistent implementation of strategy

In the third quarter of 2024, SCHOTT Pharma maintained its focus on its strategic building blocks of innovation and expansion in order to accelerate growth.

In the field of innovation, SCHOTT Pharma has introduced its new 10ml ready-to-use (RTU) cartridges as the latest addition to the cartriQ^® family, designed to store highly sensitive biologics used to treat cancer, metabolic disorders, cardiovascular conditions, genetic disorders, and immunological diseases. These large-volume cartridges are compatible with devices that allow patients to self-administer drugs at home via subcutaneous self-injection, enhancing patient convenience and reducing healthcare costs. In collaboration with Ypsomed, the fully assembled system, featuring the on-body device YpsoDose, is the first prefilled and pre-loaded solution on the market, significantly reducing handling steps for patients. The new commercially available large-volume cartridges for human use are already used in first clinical trials. With this, SCHOTT Pharma is expanding its product range in line with the market trend towards subcutaneous injections and homecare solutions and is highlighting its role as a trusted partner to the pharma industry.

In addition, the company launched SCHOTT TOPPAC^® Nest 160 in the third quarter, marking a major step towards sustainability and efficiency. By increasing the number of prefillable polymer syringes from 100 to 160 syringes per nest, SCHOTT Pharma allows customers to streamline their production processes, significantly reducing time and labor costs. This improved density not only enhances efficiency by up to 67% but also significantly reduces manufacturing costs, and cuts carbon footprint by 17% which contributes to a better environmental impact of the product. The reduction in waste and the optimized storage and transport options benefit not only the customers but also SCHOTT Pharma in its production. This innovation highlights the advantage of SCHOTT Pharma’s strong and longstanding customer relationships, which enable the company to understand their customers’ needs and offer tailored solutions to address current market trends and demands. Further to this significant contribution to sustainability, another clear sign is SCHOTT Pharma’s commitment to taking responsibility for climate protection in order to meet requirements of the Paris Agreement based on a roadmap for emission reduction that was validated by the Science Based Targets initiative (SBTi) for the whole SCHOTT Group. SCHOTT Pharma will fulfil the same validated targets and report its progress transparently.

All expansion projects of SCHOTT Pharma are proceeding, underscoring its commitment to addressing the high demand, especially in the Drug Delivery Systems (DDS) segment. In Germany, capacities for prefillable syringes have been increased, which are expected to support the company’s short- to mid-term growth trajectory. In Hungary, progress continues following the start of production. Customer qualifications for prefillable glass syringes are underway, with further expansion plans in development. In the U.S., planning for a new facility for prefillable syringes in North Carolina has begun, with operations expected to start in the mid-term. The construction of the new best-cost production site in Serbia has advanced significantly. The installation of machines for the new production lines is underway, marking the next step towards the start of production in early 2025.

Accelerated revenue growth due to record DDS quarter drive Q3 growth

The main driver of SCHOTT Pharma’s overall revenue growth in Q3 2024 was the strong performance of the DDS segment. Revenues were the highest quarterly result ever achieved in this segment with an increase of 39% yoy to EUR 115m at constant currencies. This was driven by the ongoing strong demand for prefillable syringes. In the first nine months of the fiscal year, the intact market dynamics and consistently high demand, which is met by the capacity expansions, led to a further increase of HVS revenue share to 53%, bringing the company closer to the mid-term target of 60%. Revenues in the Drug Containment Solutions (DCS) segment showed strong growth with an increase of 11% yoy to EUR 153m at constant currencies. This development reflects the gradual improvement in demand for vials and the ongoing growth in the other product categories.

Continued high profitability alongside investment in expansion projects

SCHOTT Pharma remained highly profitable in Q3 2024 with an overall EBITDA margin of 28.2% at constant currencies (Q3 2023: 25.1%). With an increase of 50% compared to the previous year Q3, EBITDA growth in the DDS segment accelerated even faster than the already strong revenues growth, which is remarkable especially given the ramp-up in Hungary. EBITDA in the DDS segment thus totaled EUR 43m at constant currencies, resulting in an EBITDA margin of 36.9%. EBITDA in the DCS segment amounted to EUR 34m, leading to an EBITDA margin of 22.1%, which was roughly in line with the development in revenues. The performance was temporarily impacted by underutilization in vials on the customer side and planned ramp-up costs for capacity relocations in Serbia.

For Q3 2024, the company’s profit came in at EUR 46m, resulting in 52% growth year-on-year. Ongoing investments in the first nine months of the fiscal year amounted to EUR 81m, of which the largest share were growth investments. Despite these investments, the free cash flow for the first nine months came in at EUR 68m, an increase of EUR 14m compared to the same period in fiscal year 2023. SCHOTT Pharma’s strong cash generation enabled the company to self-fund its high-growth investments.

Outlook

Based on the first nine months of the fiscal year, SCHOTT Pharma increases its full year guidance to 11% to 13% (previously 9% to 11%) revenue growth and confirms its EBITDA margin guidance at approximately prior year’s level (FY 2023: 26.6%), both at constant currencies. This takes into account a seasonally weaker fourth quarter due to the annual summer break.

The major pharma trends that SCHOTT Pharma addresses with its products remain intact as the most important growth drivers. The company consistently pursues its strategic pillars of innovation and expansion to build on these market trends which include GLP-1, mRNA, homecare, ADCs, subcutaneous administration of drugs, and the ready-to-use manufacturing transformation of pharma companies. That is why SCHOTT Pharma reiterates its mid-term outlook of organic revenue growth above 10% CAGR and an EBITDA margin in the low 30% range at constant currencies.

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Key figures Q3 2024

Key figures 9M 2024

¹The fiscal year runs from October to September. Q3 2024 therefore relates to the period from April 2024 to June 2024.
²CC = at constant currencies

Webcast

Andreas Reisse (CEO) and Dr. Almuth Steinkühler (CFO) will speak at an analyst and investor conference call at 11:00 a.m. CET on 29 August 2024 to discuss the Q3 2024 results. The audio webcast can be followed via a conference call. The accompanying presentation can also be downloaded on the IR website: www.schott-pharma.com/investor-relations

About SCHOTT Pharma

Human health matters. That is why SCHOTT Pharma designs solutions grounded in science to ensure that medications are safe and easy to use for people around the world. The portfolio comprises drug containment solutions and delivery systems for injectable drugs ranging from prefillable glass and polymer syringes to cartridges, vials, and ampoules. Every day, a team of over 4,600 people from over 60 nations works at SCHOTT Pharma to contribute to global healthcare. The company is represented in all main pharmaceutical hubs with 16 manufacturing sites in Europe, North and South America, and Asia. With over 1,000 patents and technologies developed in-house and a state-of-the-art R&D center in Switzerland, the company is focused on developing innovations for the future. SCHOTT Pharma AG & Co. KGaA is headquartered in Mainz, Germany and listed on the Frankfurt Stock Exchange as part of the SDAX. It is part of SCHOTT AG, which is owned by the Carl Zeiss Foundation. In light of this spirit, SCHOTT Pharma is committed to sustainable development for society and the environment and has the strategic goal of becoming climate-neutral by 2030. Currently, SCHOTT Pharma has over 1,800 customers including the top 30 leading pharma manufacturers for injectable drugs and generated revenue of EUR 899 million in the fiscal year 2023.

Press contact

Lea Kaiser
Media Relations
Tel.: +49 (0) 6131 66-2422
E-Mail: lea.kaiser@schott.com 

Jasko Terzic, CFA
Senior Manager Investor Relations
E-Mail: ir.pharma@schott.com