DGAP-News: aap Implantate AG
/ Key word(s): Quarter Results
Q1/2022: Solid start to the year with 6 % sales growth and EBITDA within expectations in a challenging macroeconomic environment
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aap Implantate AG (“aap” or the “Company”) started the financial year 2022 in a challenging macroeconomic environment with solid sales growth and EBITDA in line with expectations. In this context, aap increased sales by 6 % compared to the same period of the previous year to EUR 2.9 million (Q1/2021: EUR 2.7 million). In terms of earnings, the Company recorded EBITDA of EUR -0.5 million (Q1/2021: EUR -0.2 million), which mainly reflects the planned expansion of the sales infrastructure in Germany and the U.S. and the conduction of the human clinical study for aap’s innovative antibacterial silver coating technology.
Q1/2022 – Key financial figures
On the market side, aap continued to be exposed to the effects of the COVID-19 pandemic to varying degrees in the first quarter. Among other things, it was observed that surgeries could not be performed or could only be performed to a reduced extent due to COVID-19-related absences of hospital staff or COVID-19 infections of trauma patients. In addition, despite the lifting of many COVID-19 protection measures, general mobility has not yet returned to pre-COVID-19 levels and is accordingly reflected in lower case numbers. In addition, the war in Ukraine, which is currently still ongoing, generally impacted business development in the first quarter, e.g., in the processing of new customer contracts in Eastern Europe or payments from countries with a high dependency on Russia.
Overall, the picture is ambivalent when looking at the individual regions: the pleasingly significant growth in the EMEA region (= Europe, Middle East, Africa; +19 %) is mainly based on a revival of business with existing customers in Southeastern Europe and the Middle East. In contrast, the recovery to pre-COVID-19 levels in the individual markets of importance to the Company, Spain and Germany, is taking notably longer than expected and planned, which is reflected above all in a continued lower case volume than before the onset of the COVID-19 pandemic.
In North America, aap remains on a growth track and was able to increase sales (+5 %). After a very slow start in January and the first half of February due to COVID-19 effects, March saw the highest ever number of surgeries performed in a single month.
In Latin America (-26 %) and Asia-Pacific (-34 %), the ongoing impact of the COVID-19 pandemic is clearly reflected. Rising infection rates and zero COVID19 guidelines implemented in some regions impacted business performance in the first months of the fiscal year, in some cases severely. In addition, new regulatory and procurement guidelines that came into force at short notice, particularly in China, are making further expansion of the business more difficult.
In terms of earnings, EBITDA decreased as expected compared with the same period of the previous year to EUR -0.5 million (Q1/2021: EUR -0.2 million). The following developments in the first quarter were particularly decisive in this respect:
Excluding the non-recurring effects, recurring EBITDA decreased to EUR -0.4 million in the first quarter of 2022 (Q1/2021: EUR -0.2 million).
Silver coating technology
With regard to aap’s innovative silver coating technology, the first surgeries in the human clinical study for its innovative antibacterial silver coating technology were performed in the first quarter of 2022. The surgeries took place at the University Hospital Regensburg and went according to plan. In addition, the Company was able to include further clinics in the study in the first quarter, so that further patient recruitment can be expected in the coming months. aap had initiated the clinical human study in December last year, which is an essential step towards the planned market approval (CE) of the innovative technology.
Despite the currently observable dynamic pressure on global supply chains, the uncertainty regarding the COVID-19 pandemic as previously described, the general inflationary environment and taking into account the first quarter results, the Management Board continues for the time being to adhere to the communicated forecast values for sales and EBITDA for the financial year 2022. Even under the current market adversities, the Company is recording a growing number of new potential distribution channels and aap’s long-standing distribution partners are confident that they will return to pre-pandemic levels in the foreseeable future. In this context, aap’s distribution partners and the Company anticipate a renewed increase in case numbers in the trauma segment due to observable declines in COVID-19 infection figures, a resurgence in global mobility as a result of increased return to work, increased sports and leisure activities, and a resurgence in numbers in the tourism industry.
 Gross margin = sales revenue +/- change in inventories of finished goods and work in progress – cost of materials / cost of purchased services
About aap Implantate AG
The figures presented in this press release may be subject to technical rounding differences which do not affect the overall presentation.
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|Company:||aap Implantate AG|
|Phone:||+49 (0) 30 75 01 90|
|Fax:||+49 (0) 30 75 01 91 11|
|Listed:||Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1351551|
|End of News||DGAP News Service|