Selvita S.A. (SLV) Q3 2024 earnings summary

Executive summary

• Revenues for the first three quarters of 2024 decreased by 7% year-over-year to PLN 247.9 million, mainly due to currency effects and lower contracting in Drug Discovery, while Drug Development showed growth.

• Net loss for the period was PLN -9.6 million, or PLN -6.9 million excluding the incentive scheme, compared to a net profit of PLN 6.0 million in the prior year.

• EBITDA (excluding incentive scheme) fell 39% year-over-year to PLN 35.0 million, with margin dropping to 14% from 22% last year.

• The Group expanded into biologic drug discovery and acquired Pozlab Sp. z o.o., strengthening its Drug Development segment.

• Backlog for 2024 is PLN 332.9 million, 2% lower year-over-year, but backlog for 2025 is up 26% compared to the prior year.

Financial highlights

• Revenues from sales: PLN 244.7 million (down from PLN 260.5 million year-over-year).

• Net loss: PLN -9.6 million (vs. net profit of PLN 6.0 million year-over-year); net loss excluding incentive scheme: PLN -6.9 million.

• EBITDA: PLN 32.3 million (down from PLN 47.1 million); EBITDA excluding incentive scheme: PLN 35.0 million.

• Cash at September 30, 2024: PLN 14.7 million, down from PLN 52.7 million at year-end 2023.

• Book value per share: PLN 17.26 (up from PLN 15.12 year-over-year).

Outlook and guidance

• The Group maintains a safe liquidity position and continues to fulfill obligations, with cash from operations supporting planned investments.

• Backlog for 2025 is PLN 106.1 million, up 26% year-over-year, indicating improved future contracting.

• Management expects results in upcoming quarters to depend on sales dynamics, integration of acquisitions, and currency rates.