Biotest (BIO3) H2 2023 earnings summary

Executive summary

• Revenue rose 32.7% to €684.6 million, led by €190.1 million from the Grifols technology transfer and development agreement; excluding this revenue, sales declined 4.2% YoY to €494.5 million.

• EBIT rebounded to €143.5 million from a €16.6 million loss, driven chiefly by €158.2 million of TTLA earnings effects and a €23.1 million gain on subsidiary disposals.

• Yimmugo generated €27.2 million in revenue as production ramped up at the new Dreieich facility; Fibrinogen and Trimodulin advanced in Phase III development.

Financial highlights

• Revenue was €684.6 million versus €516.1 million; excluding €190.1 million of technology disclosure and development services, revenue was €494.5 million, down 4.2% YoY.

• EBIT was €143.5 million versus a €16.6 million loss; EBT was €106.3 million versus a €30.8 million loss, and net income was €127.0 million versus a €31.7 million loss.

• EBITDA reached €179.4 million versus €19.2 million; adjusted EBIT, excluding exceptional items, was €41.5 million versus €60.7 million.

• Operating cash flow improved to negative €2.7 million from negative €40.5 million; working-capital outflow rose to €120.8 million, mainly from higher inventories and receivables.

• Cost of sales was €404.3 million, up 3.4%; the cost-of-sales ratio improved to 59.1% from 75.8%, primarily reflecting TTLA revenue.

Outlook and guidance

• 2024 revenue is forecast to grow in the upper-single-digit percentage range, including TTLA revenue; EBIT guidance is €80–100 million and adjusted EBIT €65–85 million.

• 2024 ROCE is expected to improve slightly YoY, with positive operating cash flow significantly above 2023; investment is planned at the prior-year level.

• Yimmugo production volumes are expected to increase; launches in additional European markets are planned for 2024, while US approval steps continue.

• R&D activity is planned to rise well above 2023 levels with Grifols, accelerating development and approval work, particularly in the US and Europe.