Cryo-Save Group N.V. (Euronext: CRYO, `Cryo-Save`, or `the Group`), the leading international stem cell storage company and the largest family stem cell bank in Europe, has published its financial results for the year ended 31 December 2013.
Cryo-Save`s main markets remained depressed during 2013. This significantly stalled new client acquisitions. As a result, revenue dropped by €6.2 million to €30.6 million (2012: €36.8 million). The total volume drop for the year could only be marginal offset by an improved country and price mix. However, the Group noticed a stabilization of new client acquisitions during the second half of 2013.
The gross profit as a percentage of revenue remained stable at 64% in comparison to 2012. However, Cryo-Save saw a marked improvement from 61.5% during the first half of 2013 to 67.6% during the second half of the year, mainly due to cost savings materializing in lab consumables and lab examination cost as a result of the implementation of the comprehensive turnaround plan.
The underlying marketing and sales expenses decreased by €3.4 million due to headcount reduction as a result of an organizational redesign and a freeze of certain marketing expenses. Underlying general and administrative expenses, which include €1.3 million unplanned consultancy and legal costs, increased by €0.8 million.
This resulted in underlying earnings before interest, taxation, depreciation and amortization (EBITDA) of €0.5 million (2012: €1.9 million).
In 2012 Cryo-Save started a turnaround to regain profitable growth. During the first half of 2013 a renowned strategy consultancy firm was engaged to support the Group with the identification of further measures to restore profitability and conducting an in-depth analysis of the Group`s strategic objectives for the mid to longer term. This analysis reconfirmed that Cryo-Save is active in a market that holds a strong future promise as the conditions treatable with stem cells as well as clinical trial activities are increasing continuously. Cryo-Save`s new Board supported the management to continue the implementation of the turnaround strategy, which is well on track and ensured that the Company swung back to profitability by year-end.
In December 2013, Cryo-Save acquired the commercial activities of Salveo Biotechnology in Switzerland, Spain, Italy, Portugal and Ukraine. The Group will benefit from increased revenues and profitability, expand market shares by a dual brand strategy and further strengthen the market leader position in the European stem cell market.
The Board of Directors will be nominating Mr. Frédéric Amar as Executive Director and new CEO of Cryo-Save at an Extraordinary General Meeting of Shareholders to be held on Wednesday, March 19 2014. Mr. Amar has a strong scientific background and track record in creating and managing companies as well as a deep knowledge about the technique of and markets for stem cells cryopreservation. The Board of Directors expects that Mr. Amar will accelerate the initiated turnaround of the company and create value for shareholders and other stakeholders.
As at 31 December 2013, Cryo-Save had a rock-solid cash position of almost €9 million (31 December 2012: €7 million).
Evi Mattil, Chief Executive officer a/i, commented:
"A turbulent year was resolved by the appointment of Mr Frédéric Amar and Mr Gert-Jan van der Marel in the Board of Cryo-Save in November. The strong experience and deep market knowledge that Mr. Frédéric Amar is bringing to our company will drive Cryo-Save to the next level of profitable growth, following the implementation of a comprehensive turnaround program.
"2013 will also be remembered as the year in which we reached the major milestone of storing more than 250,000 stem cell samples in addition to two successful releases of samples stored by Cryo-Save which were used for the treatment of patients suffering from Cerebral Palsy and Blackfan-Diamond Anaemia."
Frédéric Amar, Non-Executive Director, commented:
"We are conducting a further strategic review of the company. I am deeply committed to bring this company back to substantial growth and profitability and will be totally involved in the future developments."Click here for full press release in PDF
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Source: Cryo-Save Group N.V. via GlobeNewswire
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