DGAP-Adhoc
Vita 34 lowers sales and earnings guidance due to IFRS 15 effect and accelerated restructuring measures
DGAP-Ad-hoc: Vita 34 AG / Key word(s): Forecast Vita 34 lowers sales and earnings guidance due to IFRS 15 effect and accelerated restructuring measures |
Leipzig, 29 August 2022 - In close coordination with its legal and business advisors, Vita 34 AG has today succeeded in reaching an agreement to structure its storage contracts with customers in the PBKM subgroup in such a way that they can be accounted for again for a longer period of time - similar to the original accounting at PBKM. From today’s perspective, the positive effect of this decision amounts to around EUR 9.0 million per year and has an equal impact on Group sales and earnings before interest, taxes, depreciation and amortization (EBITDA). This will be taken into account in the contractual regulations with immediate effect.
However, since due to the nature of Vita 34's business model, contract conclusions lead to invoicing after average four to six weeks at the earliest, the consensus reached today will have a positive effect on the Company's consolidated revenues and earnings from the fourth quarter of 2022 onwards with minor impact on the third quarter. In its forecast for the full year, however, the company has already anticipated this effect from the beginning of the third quarter, which leads to the fact that both the estimate of consolidated revenue and EBITDA expected in 2022 were assumed EUR 2.5 million too high.
In addition, the Management Board has decided today to bring forward significant restructuring measures to leverage post-merger synergies to the current financial year 2022 in view of the current market environment. The location measures relate especially to the markets of Poland, Portugal, Switzerland and Spain and will result in a non-recurring special charge at EBITDA level of EUR -1.5 million.