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

Executive summary

• Selvita Group reported a net loss of PLN 12.2 million for H1 2024, reversing a net profit of PLN 10.3 million in H1 2023, mainly due to lower revenues and higher costs.

• Total revenue for H1 2024 was PLN 158.1 million, down 13% year-over-year, with declines in both contract research and grant income.

• Acquisition of Pozlab Sp. z o.o. in May 2024 expanded the Group's drug development capabilities and contributed to increased goodwill.

• Cash and cash equivalents decreased significantly to PLN 14.4 million as of June 30, 2024, from PLN 52.7 million at year-end 2023.

Financial highlights

• Sales revenue for H1 2024 was PLN 156.5 million, down from PLN 178.1 million in H1 2023.

• Operating loss for H1 2024 was PLN 8.4 million, compared to an operating profit of PLN 9.7 million in H1 2023.

• EBITDA was negatively impacted by higher amortization, depreciation, and incentive program costs.

• Basic and diluted EPS from continuing operations was PLN -0.66 for H1 2024, compared to PLN 0.56 in H1 2023.

• Net cash flows from operating activities were PLN 18.7 million, while investing and financing activities resulted in net outflows.

Outlook and guidance

• Management expects the acquisition of Pozlab to enhance the Group's drug development offering and open new market opportunities in early clinical trial drug production.

• No circumstances identified that would threaten the Group's ability to continue as a going concern for at least 12 months.