Bavarian Nordic (BAVA) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 performance with revenue of DKK 2,259 million and EBITDA of DKK 441 million, driven by travel health growth and normalized public preparedness sales after the 2023 mpox outbreak spike.

• Travel health revenue rose 15% year-over-year to DKK 1,119 million, with significant progress in tech transfer and new product launches.

• Public preparedness revenue guidance for 2024 confirmed at the upper range, with most contracts secured and revenue at DKK 1,024 million.

• Advancing Chikungunya vaccine for launch in US and Europe in H1 2025, with regulatory submissions under priority review.

• Key product launches and regulatory milestones included the U.S. launch of JYNNEOS, FDA and EMA submissions for the chikungunya vaccine, and new contracts for smallpox/mpox vaccines in the U.S., EU, and Africa.

Financial highlights

• H1 2024 revenue: DKK 2,259 million; EBITDA: DKK 441 million; net profit: DKK 147 million.

• Public preparedness contributed DKK 1,024 million; travel health segment delivered DKK 1,119 million, up 15% year-over-year.

• Gross profit was DKK 985 million, with a margin of 44% (improving to 51% in Q2).

• Cash and equivalents at period end: DKK 2,237 million, with access to an undrawn DKK 1 billion sustainability-linked loan.

• Equity as of June 30, 2024: DKK 10,437 million.

Outlook and guidance

• 2024 revenue guidance set at DKK 5.3 billion and EBITDA at DKK 1.35 billion, both at the top end of the original range.

• Public preparedness revenue (~DKK 3,000 million) is largely secured by contracts; travel health expected to grow 12%.

• Additional capacity to supply up to 2 million mpox vaccine doses in 2024 and 10 million by end-2025, contingent on orders.

• R&D costs for 2024 expected at DKK 850 million, with chikungunya program representing nearly half.

• Net working capital to increase by DKK 900 million due to inventory build-up; DKK 2,000 million in milestone payments expected.