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aap with positive EBITDA in Q2 and H1/2021 for first time since focusing on trauma and significant sales growth of +74% (Q2) and +37% (H1)

DGAP-News: aap Implantate AG / Key word(s): Half Year Results/Half Year Report
13.08.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

aap Implantate AG ("aap" or the "Company") remains on growth track with significant double-digit sales increases in the second quarter and first half of 2021 and achieved positive EBITDA in both reporting periods for the first time since focusing on trauma in 2016. aap increased sales by a significant 74% and 37% year-on-year in the second quarter and the first six months of financial year 2021 to EUR 3.3 million (Q2/2020: EUR 1.9 million) and EUR 6.0 million (H1/2020: EUR 4.4 million), respectively. Taking constant exchange rates into account, the growth rates were even 79% (Q2) and 41% (H1). On the earnings side, the Company generated positive EBITDA in both the second quarter and first half of 2021 of EUR 0.3 million (Q2/2020: EUR -2.1 million) and EUR 0.1 million (H1/2020: EUR -4.3 million), respectively, visibly reflecting the success of the restructuring.

Q2/2021 and H1/2021 - Key results and progress

- Sales by region: Particularly strong development in international business (Q2: >+100%, H1: +59%), but Germany also continues to recover (Q2: +3%, H1: +9%)

- USA: Continued dynamic growth with significant sales increases (Q2: +72%, H1: +30%); sales level above EUR 1 million mark for first time in Q2

- Earnings: Significant improvement in EBITDA to EUR 0.3 million in Q2 (Q2/2020: EUR -2.1 million) and EUR 0.1 million in H1 (H1/2020: EUR -4.3 million); recurring EBITDA also noticeably improved to EUR -0.1 million (Q2/2020: EUR -1.5 million) and EUR -0.4 million (H1/2020: EUR -2.9 million)

- Operational trauma business: Break-even result (recurring EBITDA) for first time since focusing on trauma in 2016[1]

- Gross margin and costs: Gross margin[2] stabilized at high level of 87% in H1 and with increase in gross margin in absolute terms in line with sales growth key driver of earnings improvement; sharply reduced cost level with declining personnel (-17% in H1) and other costs (-22% in Q2 and -12% in H1) as well as significant decrease in one-time effects

- Cash flow: Noticeable improvement in operating cash flow to EUR -0.4 million in H1 compared to previous years (financing requirement of approx. EUR 2.0 million) with clear trend towards black zero

- Balance sheet: Equity ratio at a good level of 46% (31.12.2020: 52%)

- Financing: Granting of further shareholder loans from major shareholders (approx. EUR 1.0 million) as well as inflows from COVID-19 aid program "Überbrückungshilfe III" and sale of land (together approx. EUR 0.9 million); measures to be implemented in short term in H2 to finance sales growth and human clinical study silver coating technology under evaluation

- Silver coating technology: Three silver-coated aap plate systems used for first time in IIT study and two individual healing trials in patients with severe infections - very good healing processes and no indications of infections so far - results are positive indication for human clinical study with planned start in FY/2021

- Resorbable magnesium implant technology: Focus on securing financing for further development - intensive talks with technology-savvy investors on financing up to complete sale of technology

Q2/2021 and H1/2021 - Key financial figures

Sales Q2/2021

in KEUR Q2/2021 Q2/2020* Change
USA Distributors
USA Global Partners

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



Sales 3,263 1,874 +74%

*In FY/2020, approximately KEUR 10 that was actually attributable to Germany was reported in Europe. The reclassification has been made as part of the current financial reporting.


Sales H1/2021

in KEUR H1/2021 H1/2020* Change
USA Distributors
USA Global Partners

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



Sales 5,970 4,353 +37%

*In FY/2020, approximately KEUR that was actually attributable to Germany was reported in Europe. The reclassification has been made as part of the current financial reporting.

Looking at the individual regions, against the backdrop of the relaxation of COVID-19 measures implemented in many places and progressing vaccination campaigns, aap was able to record a recovery in business in all major markets and realize in some cases very significant sales increases. International business developed particularly strongly (Q2: >+100%, H1: +59%). In Germany, too, the Company continues to recover following the lifting of numerous pandemic measures (Q2: +3%, H1: +9%), although growth here was lower than in the other core markets. This was primarily due to the relatively late end of the lockdown in Germany, where many restrictions were not lifted until the beginning of June this year.

In the USA, aap continued its dynamic growth track with significant sales increases (Q2: +72%, H1: +30%) and in the second quarter of 2021 for the first time achieved a sales level above the EUR 1 million mark.


in KEUR Q2/2021 Q2/2020 Change
EBITDA 274 -2,140 >+100%
One-time effects -399 684 <-100%
Recurring EBITDA -126 -1,456 +91%


in KEUR H1/2021 H1/2020 Change
EBITDA 86 -4,325 >+100%
One-time effects -452 1,421 <-100%
Recurring EBITDA -367 -2,904 +87%

In both the second quarter and the first half of 2021, aap was able to significantly improve earnings and achieved positive EBITDA for the first time since focusing on the trauma segment in 2016. The background to these developments is, in addition to the increase in gross margin in absolute terms in line with the noticeable sales growth as key driver, also a sharply reduced cost level. The positive cost development resulted on the one hand from the implemented restructuring measures, 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 half of 2020 were still largely characterized by the restructuring and refinancing as well as the revision of the quality management system. In addition, EBITDA was positively impacted by a one-time effect from the termination of a contract with a former distributor and an increase in other operating income, which, in addition to payments from the COVID-19 aid program "Überbrückungshilfe III", was also attributable to the reversal of provisions. The significant improvement in EBITDA thus visibly reflects the successes realized as part of the restructuring, which can be summarized as follows:

- Stabilization of gross margin at high level of 87% (H1/2020: 87%) and increase in gross margin in absolute terms in line with sales growth as key driver of earnings improvement

- Decrease in personnel expenses by 17% or EUR 0.7 million to EUR 3.2 million compared to H1/2020

- Declining trend in other costs (-22% in Q2 and -12% in H1) with significantly reduced non-recurring expenses

Excluding one-time effects, recurring EBITDA in the second quarter and first half of 2021 also improved significantly year-on-year to EUR -0.1 million (Q2/2020: EUR -1.5 million) and EUR -0.4 million (H1/2020: EUR -2.9 million), respectively. 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.

Looking at the development of the pure operating trauma business, aap succeeded in breaking even (recurring EBITDA) in the first half of the year for the first time since focusing on the trauma segment in 2016. This is again a confirmation for the implemented restructuring and transformation measures, but also an incentive to build up a sustainably profitable trauma business with further growing sales.

With regard to its innovative antibacterial silver coating technology, aap achieved another important milestone in the first half of 2021. For the first time three aap silver-coated plate systems were used in patients as part of an IIT study and two individual healing trials. These involved particularly complex fractures and/or severe infections in which the therapy measures used were specifically supplemented by the silver coating technology to increase the chances of healing. In all three cases, healing proceeded very well in the weeks following the procedures and there is no evidence of infection to date. The results are a positive indication for the planned human clinical study, which is to be started in Germany this year to obtain CE approval.

A key focus in the second half of the year will continue to be on securing aap's further financing. In this context, further measures were successfully implemented in the first half of the year. In addition to the granting of additional shareholder loans by major shareholders with a total volume of around EUR 1 million, the main factors here were the first-time qualification for the government's COVID-19 aid program "Überbrückungshilfe III", and a sale of land in Brandenburg, as a result of which aap received a total of EUR 0.9 million. Further steps must now be taken in the second half of the year to secure the Company's long-term financing. Following the successful restructuring, aap urgently needs fresh funds to finance the planned sales growth and the start of the human clinical study for the antibacterial silver coating technology. Accordingly, various measures are currently being evaluated for implementation in the short term. These range from equity-based transactions via the capital market, such as a capital increase, to corporate transactions (e.g. mergers, share or asset deals, and carve-outs) with a focus on targeted financing for the silver coating and magnesium implant technologies.


In the second half of 2021, in addition to the implementation of necessary measures to secure aap's financing, the focus will be in particular on the planned start of the human clinical study for the innovative antibacterial silver coating technology. In terms of sales, the Management Board anticipates an increase in the second half of 2021 compared to the first six months of the financial year and, on the basis of a properly filled order book, expects sales of between EUR 3.0 million and EUR 3.4 million for the third quarter. With regard to earnings, aap aims to achieve positive EBITDA in the operative trauma business for the first time in the further course of the financial year 2021, assuming development according to plan. Taking into account the full R&D project costs and before possible co-financing, the Management Board expects Group EBITDA to be at the upper end of the guidance communicated in January. However, the above forecasts for sales and EBITDA are subject to the condition that the infection situation in the context of the COVID-19 pandemic (virus mutations) does not deteriorate again and corresponding lockdown measures are imposed in the sales regions relevant for aap.

[1] aap Group excluding development costs for silver coating and resorbable magnesium implant technology, non-recurring one-time effects and non-allocable central costs.
[2] Based on sales, changes in inventories of finished goods and work in progress, and 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:

13.08.2021 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: 1225843

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Last Updated: 13-Aug-2021