DGAP-Adhoc: 2021 financial figures of Vita 34 AG expected to be significantly below market expectations due to several special effects on earnings development

2021 financial figures of Vita 34 AG expected to be significantly below market expectations due to several special effects on earnings development

Leipzig, 26 April 2022 - Based on the preliminary business figures on the corporate development of Vita 34 AG in 2021, which were audited by the auditor PWC, the company's Management Board assumes that the market expectations for the company's earnings development will be significantly missed. Although consolidated revenues increased to EUR 28.4 million in the past financial year as a result of the merger with PBKM FamiCord (2021: EUR 20.1 million), earnings before interest, taxes, depreciation and amortization (EBITDA) fell to EUR 0.8 million (2021: EUR 5.3 million). At EUR -3.9 million, the net result was also significantly lower than in the previous year (2021: EUR 1.5 million).

Despite a purely operational weakening towards the end of the year, but nevertheless very positive overall corporate development in 2021, a number of special effects were responsible for the negative earnings development. The costs reported for legal and professional advice, the preparation and implementation of the capital increase, and the share exchange including squeeze-out totaled EUR 2.7 million. At the same time, at the level of the PBKM FamiCord subgroup, additional investments in the two new expanding areas in the amount of EUR 1.0 million in the consolidated period had a negative impact on earnings.

However, the most significant effect results from the harmonization of accounting under IFRS 15 (revenue recognition). For the PBKM subgroup, this leads to a significantly lower reporting of sales and earnings contributions. With the application of the Vita 34 accounting guidelines, which, according to current prevailing opinion and business practice in Germany, must be strictly oriented to the so-called legal principle for the interpretation of IFRS 15, the revenue recognition for the PBKM subgroup had to be adjusted both for the past and the current business. According to this principle, revenue may only be recognized at the beginning of the customers contract for a sufficiently secure contract term, which is opposed by existing termination rights or insufficiently high contractual penalties in the event of termination. As a result, revenues and earnings previously recognized in the first year of the contract are recognized pro rata temporis in later periods over the term of the contract. The Management Board plans to implement appropriate contractual adjustments, which are expected to have a positive impact from the second half of 2022. Due to the retroactive recognition of this effect, which is also required for the initial consolidation of PBKM, additional positive revenue and earnings contributions will be recognized in future periods.

The complete annual report of Vita 34 AG is expected to be published on 30 April 2022.

Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Phone: +49 (0341) 48792 - 0
Mobile: +49 (0174) 9091190
Email: ingo.middelmenne@vita34.de

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