Biotage (BIOT) Q4 2024 earnings summary

Executive summary

• Full-year revenues reached SEK 2,056 million, up 10.5% year-over-year, surpassing SEK 2 billion for the first time, with recurring revenues at 72% and strong demand despite macroeconomic volatility.

• Q4 revenues were SEK 582 million, down 9.5% year-over-year due to a high prior-year base in Astrea, but core business showed sequential growth of 6%.

• Adjusted EBITDA for FY24 was SEK 547 million, up 6%; Q4 adjusted EBITDA was SEK 167 million, down 14% year-over-year.

• Strategic focus remains on expanding the customer base in clinical phase II, integrating Astrea for synergies, and reviewing the oligo service business.

• Americas delivered mid-single digit growth, while China contracted and now represents a smaller share of the business.

Financial highlights

• FY net sales: SEK 2,056 million (up 10.5%); Q4 net sales: SEK 582 million (down 9.5%).

• FY gross margin improved to 62.7%, up 1 percentage point; Q4 gross margin at 61.8%, up 0.7 points.

• Adjusted cash from operations increased 33% to SEK 579 million; net cash at year-end was SEK 184 million.

• FY operating profit was SEK 383 million (margin 18.6%); Q4 operating profit was SEK 175 million (margin 30.0%).

• Board proposes a dividend of SEK 1.65 per share for 2024, up from SEK 1.60.

Outlook and guidance

• No full-year guidance provided, but long-term revenue and profitability targets remain intact.

• 2025 expected to see revenue volatility, especially in Astrea, due to lower backlog, customer concentration, and integration activities.

• Continued focus on operational execution, cost structure streamlining, and cash maximization.

• Cautious optimism for China in 2025 as business stabilizes.