Evotec provides guidance update
EQS-News: Evotec SE
/ Key word(s): Miscellaneous
Hamburg, Germany, 06 August 2024: For the current fiscal year, the Company expects Revenues1 in the range of € 790 – 820 m (low to mid-single-digit percentage growth vs previously low double-digit percentage growth; 2023: € 781.4 m); R&D expenditures are expected in a range of € 50 – 60 m (low double-digit percentage reduction vs previously mid-single to low double-digit percentage reduction; 2023: € 64.8 m); Adjusted EBITDA1 is expected to reach € 15 – 35 m (mid-double-digit percentage reduction vs previously mid double-digit percentage growth; 2023: € 66.4 m). The Shared R&D segment faced the anticipated challenging environment in the first half with a year-over-year revenue decline at a high single digit rate. Gross margin showed modest improvements in Q2 versus Q1, but adjusted EBITDA was influenced by a still high fixed cost base. Just – Evotec Biologics revenues grew at mid double-digit rates versus a strong comparable basis due to signing of the Tech alliance with Sandoz in May 2023. Costs were driven by the capacity ramp-up with the J.POD in Toulouse, France, which progressed according to plan to meet requirements related to the significant expansion of sales orders from various partners, of which the contract extension and expansion with Sandoz in early July is by far the largest contributor. Sales orders for Shared R&D in the Discovery business grew strongly in the first half. However, due to the long-term nature of recently signed contracts, revenue conversion in 2024 is anticipated to be slower than initially expected. Given that Evotec’s cost base is laid out for benefiting from future growth, short-term effects on adj. EBITDA are more pronounced than initially anticipated. In parallel, Evotec progressed with implementing measures to reset its operational and corporate priorities with a focus on sustainable profitable growth and right-sizing of its business. Footprint, capacity & portfolio optimisation measures should result in first positive financial effects to become visible as of the third quarter 2024. Annualised recurring benefits on adjusted EBITDA are still expected to exceed € 40 m. Over and beyond the reset, Evotec’s management decided to evaluate additional strategic steps to sharpen its profile further. The development of a new mid-range plan gives reason to reschedule the Capital Markets Day, originally planned for 10 October. Details will be shared in due course. Dr Christian Wojczewski, Chief Executive Officer of Evotec, commented: “Evotec’s main success drivers are its differentiated drug discovery and development platforms and the quality and expertise of its dedicated people. However, we have challenges that urgently must be addressed. I am convinced that the priority reset with the refined guidance is the starting point to restoring trust, sharpening the focus of our organisation, and getting Evotec back on track for better performance and sustainable growth. We will evaluate and refine our strategy further, reduce complexity and pursue new approaches with the aim to strengthen our leading position and financial performance.” Evotec will release its detailed results for the first half year 2024 on 14 August.
Forward-looking statements
For further information, please contact: Media Gabriele Hansen Hinnerk Rohwedder Investor Relations Volker Braun
06.08.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Evotec SE |
Manfred Eigen Campus / Essener Bogen 7 | |
22419 Hamburg | |
Germany | |
Phone: | +49 (0)40 560 81-0 |
Fax: | +49 (0)40 560 81-222 |
E-mail: | info@evotec.com |
Internet: | www.evotec.com |
ISIN: | DE0005664809 |
WKN: | 566480 |
Indices: | MDAX, TecDAX |
Listed: | Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Nasdaq |
EQS News ID: | 1962389 |
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