Gubra (GUBRA) Q4 2024 earnings summary

Executive summary

• Achieved 31% organic revenue growth and a 30% EBIT margin in the CRO business in 2024, both exceeding initial guidance.

• Discovery & Partnerships segment revenue grew 25% year-over-year, partly due to milestone payments, but with higher costs from running more parallel projects.

• Obesity and kidney disease were the main growth drivers, with significant progress in the Amylin (Gubamy) and UCN2 drug development programs.

• Expanded ambitions in the 2030 strategy, increasing the number of internal clinical programs and targeting new flagship areas.

• CRO segment serves 16 of the world’s 20 largest pharma companies, with strong positions in metabolic, fibrotic, and obesity research.

Financial highlights

• CRO revenue grew by 31% year-over-year in 2024, with adjusted EBIT up 44% to DKK 66.5m and margin rising to 30% from 27% in 2023.

• Discovery & Partnerships revenue increased 25% year-over-year, but adjusted EBIT loss widened to DKK -109m from DKK -80m due to higher project costs.

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

• Discovery Partnership segment saw higher revenue due to increased milestone payments, but also higher costs from running more parallel projects.

• CRO EBIT in 2024 increased by over 40% following a record 2023.

Outlook and guidance

• 2025 guidance: CRO organic revenue growth of 10–20% and EBIT margin of 25–31%.

• Discovery & Partnerships segment total costs expected at DKK 230–250 million, reflecting increased clinical activity.

• Plan to have 1–3 internal clinical programs running in parallel, up from 1–2 previously.

• Mid-term target: 10% annual CRO revenue growth and sustained high profitability.