EQS-News: Q2/2023: Revenue growth in all regions (+8 %) and adjusted earnings improvement (EBITDA +21 %)
EQS-News: aap Implantate AG
/ Key word(s): Quarter Results/Half Year Report
aap Implantate AG ("aap" or the "Company") can look back on a good second quarter. The Company was able to increase sales and EBITDA compared to the previous year both in the second quarter and in the first months. The Company's revenues increased by 8 % to EUR 2.9 million in Q2/2023 compared to the same period last year (Q2/2022: EUR 2.7 million). In the first six months of the current fiscal year, sales increased by 6 % to EUR 5.9 million compared to the first half of 2022 (H1/2022: EUR 5.6 million). Regarding earnings, the Company recorded improved EBITDA of EUR ‑0.6 million (Q2/2022 corr.: EUR ‑0.7 million) in the second quarter and of EUR‑ 1.0 million (H1/2022 corr.: EUR‑ 1.2 million) in the first six months of 2023, respectively, mainly reflecting revenue growth combined with lower other costs. Q2/2023 and H1/2023 - Key financial figures After the publication of the 2022 half-year financial statements, technical errors were identified in the determination of the inventory valuation of work in progress. These errors were corrected and the results of the 2022 half-year financial statements were subsequently adjusted. In the published consolidated interim report as of June 30, 2023, the published figures and the corrected figures are presented for the previous year. In the following, only the corrected figures are compared with the figures as of June 30, 2023 as prior-year comparatives. For further details, please refer to the published interim Group report as of June 30, 2023.
Sales Q2/2023 and H1/2023
Looking at the individual regions, aap achieved in some cases very significant sales increases. Business in the LATAM markets developed particularly strongly, with growth in the second quarter and the first half of the year of +13 % and +29 % respectively. This positive development is due to the continuous expansion of our distributors in important markets such as Mexico and Brazil, the progressing market development by the new distributor in Colombia, and the growing activities in the entire Latin American region.
EBITDA Q2/2023 and H1/2023
aap thus realized an improved EBITDA in the second quarter as well as in the first half of 2023 compared to the same period of the previous year of EUR‑ 0.6 million (Q2/2022: EUR -0.7 million) and EUR‑ 1.0 million (H1/2022: EUR‑ 1.2 million), respectively. The following developments were the main factors here:
Based on the aforementioned developments, - Recurring EBITDA adjusted for non-recurring effects - improved to EUR ‑0.6 million (Q2/2022: EUR ‑1.0 million) and EUR ‑1.0 million (H1/2022: EUR ‑1.4 million) in both the second quarter and the first half of 2023. Cash flow
aap's operating cash flow decreased by 17 % year-on-year in H1/2023 to EUR ‑1.5 million mainly due to the reduction of operating and other liabilities following the capital increase. Cash flow from investing activities showed an outflow of EUR 0.1 million in H1/2023 and was attributable to investments in development projects of EUR 59 thousand (H1/2022: EUR 67 thousand) and property, plant and equipment of EUR 93 thousand (H1/2022: EUR 249 thousand). In the area of financing activities, there was a cash inflow totaling EUR 2.8 million for the first half of 2023 (H1/2022: cash outflow of EUR 0.2 million), which was primarily due to the payment from the capital increase of net EUR 3.3 million EUR, taking up a shareholder loan in the amount of EUR 0.1 million, repayment of financial liabilities and shareholder loans in the amount of EUR 0.5 million (H1/2022: EUR 0.3 million), and payment of interest in the amount of EUR 80 thousand (H1/2022: EUR 130 thousand). As a result, cash and cash equivalents increased to EUR 1.4 million at the end of the second quarter. Net debt (total of all cash and cash equivalents less all interest-bearing liabilities) was EUR 1.5 million on June 30, 2023 (December 31, 2022: EUR 3.0 million). Silver coating technology In the field of silver coating technology, aap was able to successfully resume the recruitment phase in the ongoing human clinical trial with an adapted study design in the first half of 2023 and, after only a short time, enroll more patients with the new study protocol than with the previous study protocol. During the reporting period, the focus was on the resumption of the human clinical study and the provision of a sufficient number of test samples for the new study design and the corresponding infrastructure in the clinical study centers required for this purpose. In addition, discussions continued on possible co-funding of the human clinical trial and further cooperation opportunities. Outlook Not included in the following forecast statements:
In the second half of 2023, in addition to stabilizing aap's financial position, the focus will be on expanding the human clinical trial for the innovative antibacterial silver coating technology to all planned clinic centers and preparing for the currently planned MDR audit in Q4. Based on the aap share price loss, the conversion of the remaining amount of the convertible bond will become due for repayment and will thus burden liquidity by around EUR 0.5 million. Depending on the economic development of aap in the second half of the year as well as the further macroeconomic development, this may lead to an early refinancing of the Company, which was planned in the Annual Report 2022 only for the financial year 2024. The Management Board is currently evaluating various options in this context. On the revenue side, the Executive Board plans for an increase in the second half of 2023 compared to the first six months and expects the planned revenue level of EUR 12 million to EUR 14 million for fiscal year 2023. For EBITDA in fiscal year 2023, the Executive Board expects a value of EUR ‑2.5 million to EUR ‑1.7 million, considering the full project costs for the further implementation of the human clinical trial for the antibacterial silver coating technology.
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.
Forward-looking statements
[1] Gross margin in % = (sales revenue +/- change in inventories of finished goods and work in progress - cost of materials / cost of purchased services)/ sales revenue [2] Gross margin absolute = sales revenue +/- change in inventories of finished goods and work in progress - cost of materials / cost of purchased services [3] Cost of conducting the clinical trial less grant funding
Contact: aap Implantate AG; Marek Hahn; Member of the Management Board, CFO; Lorenzweg 5; 12099 Berlin Phone: +49 (0)30 75019 - 134; Fax: +49 (0)30 75019 - 290; E-Mail: m.hahn@aap.de
14.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | aap Implantate AG |
Lorenzweg 5 | |
12099 Berlin | |
Germany | |
Phone: | +49 (0) 30 75 01 90 |
Fax: | +49 (0) 30 75 01 91 11 |
E-mail: | [email protected] |
Internet: | www.aap.de |
ISIN: | DE000A3H2101 |
WKN: | A3H210 |
Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1703163 |
End of News | EQS News Service |
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1703163 14.08.2023 CET/CEST
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