DiaSorin (DIA) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €876 million, up 4% year-over-year, with ex-COVID growth of 8% at constant perimeter and 7% at current and constant exchange rates, driven by strong Immunodiagnostics and Molecular Diagnostics, especially in the U.S. and Europe.

• Adjusted EBITDA rose 5% to €292 million (33% margin), and adjusted net result was €176 million (20% of revenues), while reported net profit increased 26% to €141 million.

• Q3 2024 saw double-digit (10%) ex-COVID growth, with Immunodiagnostics up 11% and Molecular Diagnostics up 6%, supported by new product launches and strong U.S. and European performance.

• Net financial debt improved to €686 million, a reduction of €91 million since year-end 2023, driven by strong free cash flow.

• Company raised FY 2024 guidance, expecting ex-COVID revenues to grow ~7% at constant exchange rates, COVID sales at €30 million, and adjusted EBITDA margin around 33%.

Financial highlights

• Q3 2024 revenues were €287 million (+6% year-over-year); 9M 2024 revenues reached €876 million (+4%).

• Adjusted EBITDA for 9M 2024 was €292 million (33% of revenues), up 5% year-over-year.

• Adjusted EBIT reached €225 million (26% of revenues), up 8% year-over-year; adjusted net profit was €176 million (20% of revenues), up 8%.

• Free cash flow for 9M 2024 totaled €164 million; net financial debt reduced to €686 million.

• Gross margin improved to 66% from 65% in 2023.

Outlook and guidance

• FY 2024 ex-COVID revenue growth guidance raised to ~7% at constant exchange rates, with COVID sales expected at €30 million and adjusted EBITDA margin at ~33%.

• Q4 is expected to see a deceleration in Licensed Technologies, but Immunodiagnostics should remain strong; flu season assumptions are for a regular year.

• Management remains confident in midterm guidance of high single-digit to low double-digit growth through 2027.