Powerful Q4 finish with exceptional Astrea performance
October - December
- Net sales amounted to SEK 643 (384) million, an increase of 67.3 percent and an organic* decrease of 4.4 percent.
- EBITDA amounted to SEK 189 (69) million and the EBITDA margin amounted to 29.3 percent (17.9).
- Adjusted EBITDA amounted to SEK 194 (89) million and adjusted EBITDA margin amounted to 30.2 percent (23.1).
- Operating profit amounted to SEK 143 (41) million and the operating margin was 22.2 percent (10.8).
- Profit after tax amounted to SEK 131 (74) million.
- Earnings per share were SEK 1.64 (1.12) before and 1.64 (1.11) after dilution.
- Cash flow from operating activities increased to SEK 154 (99) million.
- Adjusted cash flow from operating activities** increased to SEK 186 (133) million.
- Net cash* as of December 31 was SEK 335 (224) million.
January - December
- Net sales amounted to SEK 1,862 (1,566) million, an increase of 18.9 percent and an organic* decrease of 10.2 percent.
- EBITDA amounted to SEK 463 (428) million and the EBITDA margin amounted to 24.9 percent (27.3).
- Adjusted EBITDA amounted to SEK 518 (464) million and adjusted EBITDA margin amounted to 27.8 percent (29.6).
- Operating profit amounted to SEK 314 (327) million and the operating margin was 16.9 percent (20.9).
- Profit after tax amounted to SEK 246 (268) million.
- Earnings per share were SEK 3.34 (4.06) before and 3.33 (4.04) after dilution.
- Cash flow from operating activities decreased to SEK 284 (341) million.
- Adjusted cash flow from operating activities** increased to SEK 435 (429) million.
- On June 1, Biotage completed the acquisition of Astrea Group Holdings Company Ltd ("Astrea"), which was announced on 15 February 2023. As part of the transaction 13,954,103 ordinary shares were issued in June.
- The Board of Directors intends to propose to the Annual General Meeting a dividend to the shareholders for 2023 of SEK 1.60 (1.60) per share, corresponding to 48 (40) percent of Earnings per share.
Significant events after the end of the reporting period
- On January 4, it was announced that Tomas Blomqvist will leave his position as CEO and Torben Jørgensen will take over as interim CEO until a new CEO has been recruited. Kieran Murphy has been appointed Chairman of the Board while Torben Jørgensen is CEO.
Message from the CEO
Transformational year delivering record revenue and adjusted profits
Our strategy of being the Global Go-To Separations Company offering high-quality solutions is driving attractive profitable growth. Biotage of today is a better balanced, sharply focused, and profitable business with a strong defendable market position.
In Q423 we delivered solid results; revenues at SEK 643 (384) million up 67% over Q422; gross profits at SEK 393 (227) million up 73% and adjusted EBITDA at SEK 194 (89) million, up 119%. Undoubtedly the stand-out performance in the quarter was from Astrea Bioseparations, which delivered revenues of SEK 273 million, gross profits of SEK 166 million and adjusted EBITDA of SEK 99 million.
For the full year, our results were robust; revenues at SEK 1,862 (1,566) million, up 19% over 2022; gross profits at SEK 1,149 (948) million up 21% and adjusted EBITDA at SEK 518 (464) million, up 12%. Since acquisition, Astrea Bioseparations, has delivered revenues of SEK 393 million, gross profits of SEK 242 million and adjusted EBITDA of SEK 109 million. We are pleased with the performance of the business and the opportunities it brings us.
We increased our gross margins in 2023 by just over 1 percentage point to 61.7%, with the existing business and Astrea Bioseparations broadly delivering the same margin percentages.
The results are all the more impressive given the current challenges in the market ranging from the COVID-19 pandemic unwind of inventories and higher interest rates impacting spending decisions, especially on equipment and the rapid deceleration of growth in China.
One of our key goals is to increase the level of recurring revenue, which we define as revenue from consumables and services. In Q423 our recurring revenue was 76% of total revenue. For the full year our recurring revenue was 67% of total revenue. Higher recurring revenues give us more predictability and less volatility in our results. This was driven by the acquisition of Astrea Bioseparations whose revenue is completely consumable based.
We finished Q4 strongly with growth in five out of our six product focus areas. Our Scale up business started to reverse some of the decline seen in earlier quarters and grew 32% in Q4 to SEK 41 (31) million, finishing the year at SEK 152 (181) million. Our Biologics and Advanced Therapeutics revenue grew 1,699% in Q4 to SEK 285 (16) million and for the full year delivered SEK 454 (66) million. This product area now accounts for just under one quarter of our business in 2023 compared to just 4% in 2022.
Excluding Astrea, our EMEA business had a very strong finish to Q4 delivering growth of 14.7%, which helped to offset a small decline in Americas revenue in Q4 of -4.7%. For the full year, the Americas business delivered 5% revenue growth to SEK 690 (656) million, with EMEA delivering revenue of SEK 432 (432) million, consistent with 2022. APAC delivered revenue of SEK 348 (476) million, 27% below 2022, with most of that decline coming from China as a result of the decline in small molecule system sales resulting COVID-19 unwind. We continue to have a solid business in China broadly similar in size to what it was before the pandemic.
An improved trading performance has also driven stronger cashflows and a more robust Balance Sheet. In Q423 adjusted cash generated from operations at SEK 186 (133) million was 41% better than Q422. For the full year adjusted cash generated from operations was SEK 435 (429) million, broadly consistent with 2022.
In 2023, we sharpened our focus on our long-term strategy, positioning ourselves as a global leader in separation technologies. The acquisition of the high-growth chromatography solutions provider, Astrea Bioseparations significantly enhances our capabilities to support the development and manufacturing of biopharmaceuticals and advanced therapeutics.
Our employees supporting the small molecule segment have been working hard throughout the year, launching new products that strengthen Biotage's position further in the global life science solutions landscape. In our commitment to enhancing customer efficiency with Biotage® Selekt family of flash purification systems, we introduced innovative solutions that facilitate advanced remote monitoring capabilities and real-time liquid level monitoring. Additionally, we introduced two new solutions integrated with Biotage® Extrahera sample preparation system, providing an automated and efficient cleanup process for peptides.
Biotage has gone through a significant growth and development journey over the last few years, and I want to thank Tomas Blomquist for his leadership during this period. He leaves with our best wishes. As we embark on the next phase of growth, the board recognizes that to take our already successful company to the next level, a leadership shift with a different profile is necessary. During this transition period, as we search for the next talented leader, I have assumed the role of CEO.
Finally, I would like to thank our employees, whose hard work, dedication, and inspiration have taken us to the powerful market position we have today. As a financially robust and highly respected company, we are ideally positioned to continue developing our business for even greater successes. I would like to thank each of them, as well as our customers, investors and all partners, for the trust they place in us. We look forward to the future with optimism and excitement.
Uppsala, February 15, 2024
Torben Jörgensen
Report presentation
The report will be presented on February 15 at 15.00 CET by CEO Torben Jörgensen and CFO Andrew Kellett at a conference call.
The presentation will be held in English. If you wish to participate via webcast, please use the link below. Via the webcast you can ask written questions. Biotage Q4 Report 2023 (financialhearings.com)
If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. Call Access (financialhearings.com)
All public info will be available on: Biotage, Audiocast with teleconference, Q4, 2023 | Financial Hearings
Contacts
Torben Jörgensen, Interim President and CEO
Andrew Kellett, CFO
e: ir@biotage.com
About Biotage
Biotage is the Global Go-To Separations Company, supporting customers from drug discovery and development through to diagnostics and analytical testing with intelligent and sustainable workflow solutions. Our expertise and top-tier separation solutions play a key role in streamlining our customers' workflows and improving their outcomes.
Headquartered in Sweden, Biotage operates globally with 700 employees, serving over 80 countries. Our company is listed on NASDAQ Stockholm (BIOT).
Website: www.biotage.com
This information is information that Biotage is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-15 14:00 CET.
