Positive earnings development and a growing proportion of recurring revenues
January-March
- Net sales amounted to SEK 480 (361) million, an increase of 33.0 percent and an organic decrease of 1.4 percent.
- EBITDA amounted to SEK 112 (80) million and the EBITDA margin amounted to 23.4 percent (22.3).
- Adjusted EBITDA amounted to SEK 126 (98) million and adjusted EBITDA margin amounted to 26.2 percent (27.2).
- Operating profit amounted to SEK 67 (54) million and the operating margin was 13.9 percent (14.8).
- Profit after tax amounted to SEK 33 (43) million.
- Earnings per share were SEK 0.42 (0.65) before and after dilution.
- Cash flow from operating activities increased to SEK 108 (11) million.
- Adjusted cash flow from operating activities increased to SEK 171 (68) million.
- Net cash as of March 31 was SEK 426 and SEK 335 million as of December 31.
- On January 4, it was announced that Tomas Blomqvist will leave his position as CEO and Torben Jørgensen will take over as CEO until a new CEO has been recruited. Kieran Murphy has been appointed Chairman of the Board while Torben Jørgensen is CEO.
- On February 15, the Board decided on new financial targets. The organic revenue goal is focused on double digit growth percent with a profitability aimed toward the upper twenty percent range (Adjusted EBITDA), both averaging over three years.
- On February 15, Andrew Kellett was appointed as permanent CFO after having an interim position since September 11, 2023.
Message from the CEO
We delivered very good results for the first quarter with stronger gross margins and adjusted EBITDA. Our new strategy that focusses on being the Global Go-To Separation company, with a well-balanced product portfolio is paying dividends. Our Biologics and Advanced Therapeutics segment accounted for 30% of total revenue during the quarter. We believe this segment will continue to show attractive growth over the next few years.
Revenue in the first quarter was SEK 480 million (361), an increase of 33% compared to the same quarter last year. Adjusted EBITDA was SEK 126 million (98), an increase of 28%. We have seen a recent marked acceleration in customer demand for equipment targeted at the peptide market which we have been unable to fully keep pace with in the first quarter. We are working actively with our partner to ensure additional production capacity is available so that delivery can take place in the required volumes in the coming quarters. Had it not been for this, we would have been able to report positive organic growth rather than the small negative organic growth of -1.4% reported. In Analytical Testing, we continued to experience a good recovery after the decline that followed in the wake of the pandemic, especially in the US.
In the first quarter, our recurring revenue business accounted for 72% of revenue. This has resulted in better predictability and a more even cash flow. In the first quarter of 2024, adjusted cash flow from operating activities amounted to SEK 171 million (68), which was due, among other things, to better management of operating cash flow.
In terms of our different geographical markets, we had very good results in EMEA during the first quarter. We continued to grow organically in this region after a weakening linked to the rapid decline in COVID-19 vaccine production. The Americas also showed organic growth, as well as parts of APAC. Looking at the APAC region as a whole, organic growth failed to materialize as a result of a continued weakening of the market in China.
We are continuously working to improve our performance in terms of production, sales, gross margin, operating costs and operating profit. We have also established a new management system to ensure that we implement decisions in a fast and easy-to-understand way.
We continue to invest in our production facilities in Astrea on the Isle of Man and in research and development of the nanofiber technology platform, which will enable increased capacity and greater yield in applications such as cell and gene therapies. At the same time, we have exciting launches of instruments in several of our other areas ahead of the coming quarters.
Today, Biotage is a company with a better balance between its different product areas, its geographic markets, and its recurring revenues and system.
During this predominantly very positive first quarter of the year, I noticed the incredible hard work and commitment of all our employees. And that gives me a strong belief in the future.
Uppsala, April 25, 2024
Torben Jørgensen
CEO and President
Report presentation
The report will be presented on April 25 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 Q1 Report 2024 (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: https://financialhearings.com/event/46885
Contacts
Torben Jörgensen, 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 2024-04-25 08:00 CEST.
