Gubra (GUBRA) Q4 2024 earnings summary

Executive summary

• Achieved 31% organic revenue growth in the CRO service business in 2024, surpassing initial expectations, with an EBIT margin of 30% and EBIT up 44% year-over-year.

• Discovery & Partnerships revenue grew 25% year-over-year, driven by milestone payments and project advancement.

• Obesity and kidney disease were the main growth drivers, with significant progress in the Amelin (Amelin/GUBamy) and UCN2 programs.

• Announced a new 2030 strategy, aiming for 1-3 fully owned clinical programs and expansion into women's health.

Financial highlights

• CRO revenue up 31% year-over-year to DKK 220m, with adjusted EBIT up 44% to DKK 66.5m and margin rising to 30% from 27%.

• Discovery & Partnerships revenue increased 25% to DKK 46m, with adjusted EBIT loss widening to DKK -109m due to higher project costs.

• Company-wide yearly revenue growth averaged 30% since 2008.

• Total cost guidance for 2025 (COGS + OPEX) is DKK 230-250 million, up from DKK 155 million in 2024.

Outlook and guidance

• CRO business guides for 10-20% organic revenue growth in 2025, with EBIT margin expected between 25-31%.

• Discovery & Partnerships segment total costs expected at DKK 230–250m.

• Increased R&D investment in 2025 to advance Amelin MAD study and prepare UCN2 for clinical trials.

• Strategic focus on balancing internal pipeline advancement with external CRO services.