Gubra (GUBRA) Q2 2024 earnings summary

Executive summary

• CRO business achieved 34% organic revenue growth year-over-year in H1 2024, driven by strong demand in obesity-related services and projects.

• Adjusted EBIT for the CRO segment increased 63% year-over-year, reflecting high profitable growth.

• Discovery & Partnerships (DNP/D&P) segment advanced key obesity programs, including amylin (GUBamy) and UCN2, with clinical and preclinical milestones achieved.

• The company raised its 2024 financial outlook for CRO revenue growth and EBIT margin, citing robust orderbook and trading momentum.

• Organization expanded to 235 employees and was awarded Biotech Company of the Year in Denmark in June 2024.

Financial highlights

• H1 2024 CRO revenue reached DKK 107.5 million, up 34% from H1 2023; total H1 2024 revenue was DKK 120.6 million.

• Adjusted EBIT for CRO was DKK 34.6 million, up 63% from H1 2023, with a margin of 32% (vs. 27% in H1 2023).

• Discovery & Partnerships revenue declined to DKK 13.1 million (H1 2023: DKK 21.8 million) due to milestone timing.

• Net loss for H1 2024 was DKK 20.1 million, slightly higher than H1 2023's DKK 18.1 million loss.

• Cash flow from operations in H1 2024 was a DKK 10.4 million inflow.

Outlook and guidance

• CRO segment 2024 organic revenue growth guidance raised to 23-28% (previously 15-20%), with adjusted EBIT margin outlook at 29-32%.

• Discovery & Partnerships targets 1-2 new partnerships per year and mid-term revenue growth of 35-40% annually.

• Total adjusted costs for 2024 expected at DKK 160-170 million.

• Top-line results for the amylin (GUBamy) phase I trial expected late 2024; UCN2 phase I study planned for late 2025/early 2026.