In addition to an increase in sales to over EUR 10 million, an EBITDA margin in the double-digit percentage range is expected this year. Management also expects revenue increases and an increase in the EBITDA margin for 2021. This is due to well-filled order books and high-growth products.
The Leipzig company can look back on a successful 2020 and is planning a stronger future. c-LEcta's broad business model has proven itself. Pauses in growth for individual products during the pandemic year were offset by strong performances in other areas. Positive impetus came in particular from the pharmaceuticals business. The product company's strategy thus continues to bear fruit. Over 85% of sales now come from products. Sales will ultimately surpass the psychologically important €10m mark for 2020.
At the same time, c-LEcta is also showing its earnings potential: the changed product mix will lead to a double-digit EBITDA margin, which will be earlier than expected in 2020. c-LEcta has also expanded its reach geographically this year, putting it in a strong position to capitalize on opportunities around the world. Overall, the company delivered its products to more than 25 countries on three continents, with sales in the USA developing at an above-average rate.
The order book is already well filled for next year. On this basis, c-LEcta expects a disproportionately strong sales development. Despite the strategic focus on the growth of the company, a significant improvement in the EBITDA margin is again planned.
"This year we have shown that our growth is based on a solid foundation, which has been maintained and even strengthened until 2020," comments Thomas Pfaadt, CFO of c-LEcta. “With our very good EBITDA, we also show that we can be profitable. We will achieve a significantly positive EBITDA margin earlier than planned, which of course also strengthens us for investments in further growth opportunities. We will therefore continue to systematically implement our successful strategy. "
A product called DENARASE, which is used in gene and cell therapy but is also needed to manufacture certain types of vaccines, was the biggest growth driver in 2020. As such, vaccine development and production gathered significant momentum in 2020 In the medium term, however, the management of c-LEcta expects demand to develop dynamically, particularly through gene and cell therapy. Market researchers expect the global gene and cell therapy market to grow at a CAGR of over 2027% by 25.
The DENARASE ELISA kit was also launched in 2020 to complement the company's current products. The kit can be used to detect DENARASE residues. With this, c-LEcta complements its portfolio around DENARASE also from a technological point of view. The new product was received very positively and already in the year it went on sale exceeded expectations in terms of sales and performance in customer applications.
"We are very pleased with the success of our product DENARASE, with which we are also making our contribution to combating the pandemic," comments Dr. Marc Struhalla, Founder and CEO of c-LEcta. "At the same time, we expect continued strong development with this product, not only in vaccine production, but especially in the area of gene and cell therapy. This is an important issue for the future. In the medium term, we continue to expect impetus from the food industry and from new products in our pipeline. "
Source: Press release c-LEcta from November 15.12.2020th, XNUMX