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Q1/21: Successful start to the year with sales growth (+9%) and significant earnings improvement (+91%) despite still burdening COVID-19 pandemic - restructuring successes clearly visible

DGAP-News: aap Implantate AG / Key word(s): Quarter Results
28.05.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

aap Implantate AG ("aap" or "Company") has successfully started the financial year 2021 with sales growth and a significant improvement in earnings. Although the first quarter continued to be impacted by the still rampant COVID-19 pandemic, aap increased sales by 9% year-on-year to EUR 2.7 million (Q1/2020: EUR 2.5 million). Considering constant exchange rates, the growth rate was even 12%. Regarding earnings, the Company recorded significantly improved EBITDA of EUR -0.2 million in the first quarter of 2021 compared to the corresponding period of the previous year (Q1/2020: EUR -2.2 million), which thus visibly reflects the successes in restructuring. Excluding one-time effects, recurring EBITDA in the first three months of 2021 also improved substantially year-on-year to EUR -0.2 million (Q1/2020: EUR -1.4 million).

Q1/2021 - Key results and progress

- Sales by region: Recovery of business in Germany (+15%) and internationally (excluding USA; +14%) despite still noticeable impact of COVID-19 pandemic

- USA: Continued dynamic development with new record level of surgeries performed per quarter (>500) and sales growth in distribution business (+24%)

- Earnings: Significant improvement in EBITDA to EUR -0.2 million (Q1/2020: EUR -2.2 million) due to sales growth, increase in gross margin[1] and sharply reduced cost level; recurring EBITDA adjusted for one-time effects also substantially improved to EUR -0.2 million (Q1/2020: EUR -1.4 million)

- Gross margin and costs: Increase in gross margin to 89% (Q1/2020: 86%) primarily due to improved product, customer and price mix as well as efficiency improvements in manufacturing process; sharply reduced cost level with declining personnel (-29%) and other costs as well as significant decrease in one-time effects

- Cash flow and balance sheet: Significantly improved EBITDA lead to nearly balanced operating cash flow of EUR -0.2 million (Q1/2020: EUR -2.4 million)

- Silver coating technology: Progressing preparations of human clinical study in Germany with focus on stabilization and standardization of production process, data validation and regulatory compliance; further test coatings performed for potential first joint development projects to be completed; ongoing talks with global medical technology companies on potential co-funding of study and further collaboration opportunities

- Resorbable magnesium implant technology: Currently intensive and very promising talks with technology-savvy investors to finance the further development up to the complete sale of the technology

Q1/2021 - Key financial figures

Sales Q1/2021

in KEUR Q1/2021 Q1/2020 Change
USA Distributors
USA Global partners

International (without USA)
Europe (without Germany)
BRICS countries
RoW (Rest of World)



Sales 2,699 2,479 +9%

in KEUR Q1/2021 Q1/2020 Change
Sales (constant exchange rates) 2,699 2,418 +12%

Looking at the individual regions, aap was able to record a recovery in business both in Germany (+15%) and internationally (excluding the USA; +14%) despite the still noticeable effects of the COVID-19 pandemic and realized corresponding sales increases. However, the picture at international level is ambivalent: While performance in Europe continued to be impacted by the comprehensive lockdown measures and a vaccination campaign that is only progressing slowly, as reflected in a 13% decline, sales in the BRICS region almost doubled (+91%), mainly due to increased demand in Brazil. In the rest of the world (RoW), however, sales in the first quarter were virtually unchanged from the corresponding prior-year level.

In the USA, aap continues to record dynamic development: In the first three months, more than 500 surgeries were performed with aap products, more than ever before. Based on this, sales in the US distribution business increased by 24% to EUR 0.7 million. In the overall US market, sales development in the first quarter of 2021 stabilized at the level of the previous year, as the first quarter of 2020 was still impacted by a major order from a global partner, which thereafter only ordered consumables on a much smaller scale. Basically, the trend shown - continuous increase in weekly surgeries - supports the achievement of the ambitious growth targets for 2021 in the USA. This momentum is driven particularly by the contracts concluded with US-wide purchasing associations and networks that give aap access to many clinics and surgical operation centers.

EBITDA Q1/2021

in KEUR Q1/2021 Q1/2020 Change
EBITDA -188 -2,185 +91%
One-time effects -58 737 >-100%
Recurring EBITDA -246 -1,448 +83%

In the first quarter of 2021, aap was able to improve earnings significantly and achieved almost balanced EBITDA. The background to this development is, in connection with the realized sales growth, a substantial improvement of the gross margin and a sharply reduced cost level. The increase in the gross margin is primarily the result of an improved product, customer, and price mix with lower material expenses as well as the efficiency improvements already achieved in the manufacturing process. In addition, revenue in the first three months of 2021 was largely generated by sales of implants, which in contrast to the sale of entire sets (consisting of implants and instruments) have a significantly improved margin structure. The positive cost development results on the one hand from the measures implemented as part of the ongoing restructuring, which are reflected in declining personnel and other costs, and on the other hand from a significant decrease in one-time effects, which in the first quarter of 2020 were still significantly impacted by the restructuring and refinancing as well as the revision of the quality management system. In addition, EBITDA in the reporting period were positively impacted by an effect in other operating income, primarily due to the recognition in income of a first partial payment from the COVID-19 aid program "├ťberbr├╝ckungshilfe III". The significant improvement in EBITDA thus visibly reflects the successes realized in the ongoing restructuring, which can be summarized as follows:

- Improvement in gross margin to 89% (Q1/2020: 86%)

- Significant decrease in personnel expenses by 29% or EUR 0.6 million to EUR 1.6 million compared to Q1/2020

- Declining trend in other costs with significantly reduced one-time expenses (Q1/2021: EUR -0.2 million; Q1/2020: EUR -0.7 million)

Based on the developments described above, EBITDA in the first quarter of 2021 amounted to EUR -0.2 million (Q1/2020: EUR -2.2 million). Excluding the one-time effects, recurring EBITDA in the first three months of 2021 also significantly improved year-on-year to EUR -0.2 million (Q1/2020: EUR -1.4 million). Overall, this reflects the targeted development: focus on established markets with higher profit margins and sustainable streamlining of the cost structure to improve operating performance.


Based on the development in the first quarter, the Management Board is confident that as the COVID-19 pandemic continues to subside in conjunction with the withdrawal of the lockdown measures and thus the opening of the markets, a further dynamization of sales will occur in the coming quarters and thus positive EBITDA can be achieved in the operating trauma business for the first time since the focus on trauma. Accordingly, aap expects sales growth for the second quarter of 2021 and plans a sales level above the EUR 3 million mark (Q2/2020: EUR 1.9 million, H1/2020: EUR 4.4 million) and balanced to slightly positive EBITDA. However, based on the current order situation, this only applies under the condition that the COVID-19 pandemic continues to ease, and no additional drastic lockdown measures are imposed.

[1] Gross margin = sales revenues +/- change in inventories of finished goods and work in progress less cost of materials / cost of purchased services.

Implantate AG (ISIN DE0005066609) - General Standard/Regulated Market - All German stock markets -

About aap Implantate AG
aap Implantate AG is a globally active medical technology company based in Berlin, Germany. The Company develops, manufactures and markets products for trauma. The IP-protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) a wide range of cannulated screws. In addition, aap Implantate AG has an innovation pipeline with promising development projects such as the antibacterial silver coating technology and magnesium-based implants. These technologies address critical and unmet needs in trauma. In Germany, aap Implantate AG sells its products directly to hospitals, purchasing groups, and hospital groups, while at international level it primarily uses a broad network of distributors in around 25 countries. In the US the Company pursues a hybrid distribution strategy with its subsidiary aap Implants Inc. Distribution is carried out both through distribution agents and partnerships with global orthopedic companies. aap Implantate AG's stock is listed in the General Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit our website at

Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.

For queries, please contact: aap Implantate AG; Fabian Franke; Head of Investor Relations; Lorenzweg 5; 12099 Berlin, Germany; Phone: +49 (0)30 75019 - 134; Fax: +49 (0)30 75019 - 290; Email:

28.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: aap Implantate AG
Lorenzweg 5
12099 Berlin
Phone: +49 (0) 30 75 01 90
Fax: +49 (0) 30 75 01 91 11
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: 1201642

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Last Updated: 28-May-2021