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, announces its trading update for the quarter ended 31 March 2013. Operating results during the first quarter of 2013 of -0.6 million were at a similar level as the first quarter of 2012. The top line performance was at a lower level in comparison to the first quarter of 2012, but the Group was able to achieve significant cost savings. Almost half of the operating loss was attributable to India, where the Group expected a better performance this first quarter. According to plan the performance of the Indian entity will improve in this second quarter, and break even on a full year basis. To achieve this, Cryo-Save appointed a new General Manager in November last year, strengthened the organization and repositioned itself in the Indian market, focusing on fully automated, high quality services. The result of the Group`s operations in South Africa was impacted by consequences of the opening of the new processing and storage facility in Pretoria in January 2013, but is expected to be profitable as of Q2. Finally, due to the on-going economic crisis in the Group`s main European markets, Cryo-Save is facing a lower demand. The Q1 2013 operating loss forced Cryo-Save to take important cost saving measures across the Group to improve the result. Management has identified opportunities for a temporary freeze of certain cost in addition to sustainable cost savings across the Group on staffing and suppliers. The impact on the total cost will be visible as of Q2 2013. At the same time the Group is reworking its communication platform and implementing a more end-customer oriented sales and marketing approach.
Arnoud van Tulder, Chief Executive officer, commented:
"The economic conditions in our major markets did not change during the first quarter of this year, and continued to have a negative impact on our performance. Following the turnaround in India, the impact of the new cost savings measures and a more end-customer oriented sales & marketing approach, we expect a better result during the second half of 2013.
"The stem cell transplantation in Spain in April this year for the treatment of Blackfan-Diamond Anaemia using umbilical cord blood stem cells that were stored at Cryo-Save underscores the important role our services play in the treatment of serious debilitating diseases."
Financial highlights
Revenue of 8.1 million (Q1 2012: 9.6 million)
Gross profit of 5.1 million (Q1 2012: 6.3 million)
Operating expenses before depreciation and amortisation of 4.9 million (Q1 2012: 6.0 million)
o Decrease due to the impact of the cost saving program as announced in June 2012
EBITDA*: 0.2 million (Q1 2012: 0.3 million)
Original post:
Cryo-Save Group N.V.: Q1 Trading Update - Operating results in line with Q1 2012