Selvita S.A. (SLV) Q2 2024 earnings summary

Executive summary

• H1 2024 saw a 12% year-over-year decrease in consolidated revenues to PLN 158.4 million, mainly due to lower Drug Discovery segment sales and currency effects.

• Net loss (excluding incentive scheme) was PLN -9.95 million, compared to a net profit of PLN 18.88 million in H1 2023.

• EBITDA (excluding incentive scheme) dropped 52% year-over-year to PLN 19.5 million, with margin falling to 12% from 22%.

• The group completed the acquisition of PozLab, expanding its Drug Development segment and integrating new capabilities.

• Significant investments were made in biologic drug discovery, including a new Wrocław branch and high-value equipment.

Financial highlights

• Total assets at June 30, 2024: PLN 642.8 million; equity: PLN 316.1 million.

• Cash position at June 30, 2024: PLN 14.4 million, rising to PLN 18.5 million by September 19, 2024.

• Operating expenses increased, partly due to underutilized lab space and integration costs.

• Backlog for 2024 at September 20, 2024: PLN 315.5 million, down 1% year-over-year; backlog for 2025 up 32% to PLN 83.0 million.

• PozLab contributed negative EBITDA of PLN -1.04 million in its initial integration phase.

Outlook and guidance

• Contracting improved in H2 2024, with backlog for the second half up 4% year-over-year.

• 2025 backlog shows strong growth, driven by new contracts and integration of PozLab.

• Key factors for future results: sales dynamics, integration pace, investment in sales/marketing, and currency fluctuations.