va-Q-tec reports strong growth in first nine months of 2017
- 9M 2017 revenue: EUR 34.6 million compared with EUR 24.3 million in 9M 2016 (+42%)
- EBITDA 9M 2017: EUR 6.2 million compared with EUR 5.0 million of adjusted EBITDA in 9M 2016 (+24%)
- Very strong product business and strong service business contribute to growth
- Continued growth investments in additional production and fleet capacities as well as efficiency enhancements in structures and processes
- Major new customers acquired in the container rental business
- New airline partnerships with Lufthansa Cargo, Emirates SkyCargo, TAP Cargo and Egyptair Cargo
- Partial move into the new production and administrative location in Wuerzburg
- Various non-recurring operative effects in the current fourth quarter of 2017 lead to revenue shifts and revenue shortfalls in the low single-digit range in millions of euros
Wuerzburg, 15 November 2017. va-Q-tec AG (ISIN DE0006636681 / WKN 663668), a technologically leading provider of highly efficient products and solutions in thermal insulation and cold chain logistics, today publishes its figures for business trends in the first nine months of 2017, reporting strong revenue and EBITDA growth.
The Group generated EUR 34.6 million of revenue in the first nine months of the year, representing 42% growth compared with the previous year (EUR 24.3 million). Total income was up by 39% from EUR 30.6 million in the prior-year period to EUR 42.4 million in 9M 2017. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 24% from EUR 5.0 million (adjusted for special effects due to the IPO) to EUR 6.2 million. The EBITDA margin amounts to 15%, compared to 16% (adjusted) in 9M 2016.
The expansion is attributable to the very positive performance of the Products and Services divisions. Growth in the Products business – the sale of vacuum insulation panels (VIPs) – was driven by higher demand for high performance insulation for refrigeration installations and boilers. Revenue in this operating segment amounted to EUR 12.9 million during the first nine months of 2017, up 59% compared with the prior-year period, when the company generated EUR 8.1 million of revenue. The Services business (rental of thermal containers and thermal boxes) reported strong growth, too: thanks to the higher number of container rentals at the UK subsidiary as well as further success in the box rental business, revenue generated with Services rose to EUR 13.2 million during the first nine months of the year. It was thereby 48% higher than in the previous year‘s comparable period (EUR 8.9 million). With two of the largest European pharmaceuticals manufacturers as well as two large biotech companies, including one from the APAC region and one from the USA, va-Q-tec has succeeded in acquiring further globally operating customers in the reporting period. The airline partnership with Lufthansa Cargo that was newly agreed in Q3 makes va-Q-tec rental containers more available for pharmaceuticals customers and further enhances the perception of va-Q-tec as a preferred partner to global players. Revenue generated with Systems (sales of thermal packaging) was up by 17% to EUR 8.1 million (previous-year period: EUR 6.9 million).
Stefan Doehmen, CFO of va-Q-tec AG, explains the growth dynamic, the results of operations during the first nine months of 2017, and current trends in Q4: „Behind us lie nine months of strong growth in our Products business and strong growth in our Services business. We have also invested in personnel and processes. Although such investments are impacting our margins at present, they are also laying the foundations for further profitable growth in 2018 and following years.“
With the partial move into the new production and administration site in Wuerzburg and the aggregation of five Wuerzburg sub-locations within the new headquarters, a start was made with establishing the new technology and logistics centre in Q3. This step serves to improve operating efficiency, expand capacities for production, administration and logistics, and bundle technological competencies. The fleet of thermal containers for the global „Serviced Rental“ of thermal containers was also expanded further. Moreover, the company continues to work permanently on optimising its business processes.
Despite the very strong revenue growth during the first nine months of 2017, various non-recurring operative effects in the current fourth quarter of 2017 are leading to revenue shifts in the low single-digit range in millions of euros, thereby hampering faster growth. The on-boarding process for two major customers in the Service business proved more time-consuming than expected, as a consequence of which they are not expected to generate significant revenues in the fourth quarter of 2017, for example. Considerable revenue shifts into the 2018 financial year also arise because of one major customer‘s decision to prospectively purchase a box fleet in 2018, rather than in the fourth quarter of 2017 as originally planned. Additional revenue shortfalls occurred in Q4 2017 due to the extraordinarily severe hurricane damage in Puerto Rico, preventing the network station there from fulfilling numerous service contracts. One major pharmaceuticals customer receives its container services out of Puerto Rico. The network station is to resume normal operations during the course of this quarter according to current estimates.
As a consequence of these developments, va-Q-tec expects 2017 revenue to grow at between 28% and 32% year-on-year (originally 35% – 40%). For earnings before interest, tax, depreciation and amortisation (EBITDA), the company forecasts an increase compared with the previous year‘s adjusted EBITDA (originally: continued strong growth).
Dr. Joachim Kuhn, founder and Management Board Chairman (CEO) of va-Q-tec, adds: „The first nine months of 2017 were characterised by a positive industrial environment, as well as very well filled order books. We have even temporarily reached capacity limits in some sub-areas. I see our business model as absolutely intact, despite the need to adjust our 2017 revenue forecast. With its unique technological expertise established over many years, our company possesses enormous growth potential in the cold chain logistics area, and beyond it in many further end-applications too. This makes me very positive about our medium- and long-term prospects.“
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va-Q-tec is a leading supplier of high-performance products and solutions in the area of thermal insulation and cold chain logistics. The company develops, produces and markets highly efficient and consequently thin vacuum insulation panels (VIPs) as well as phase change materials (PCMs) for the reliable and energy-efficient temperature controlling. In addition, va-Q-tec produces passive thermal packaging systems (containers and boxes) through optimally integrating VIPs and PCMs, which can maintain constant temperatures, depending on type, up to 200 hours without external energy input. To implement temperature-sensitive logistics chains, va-Q-tec – within a global partner network – operates a fleet of rental containers and boxes meeting demanding thermal protection standards. Along with healthcare & logistics as the main market, va-Q-tec addresses the following further markets: Appliance & Food, Technics & Industry, Building and Mobility. The high-growth company, which was founded in 2001, is based in Wuerzburg, Germany. Further information is available at: www.va-q-tec.com