WuXi Biologics (2269) H2 2024 earnings summary

Executive summary

• Achieved 9.6% year-over-year revenue growth to RMB 18.68 billion in 2024, with non-COVID revenue up 13.1%, driven by strong project additions and robust global demand.

• Adjusted net profit rose 9.0% to RMB 5.40 billion, and adjusted EBITDA increased 14.4% to RMB 8.00 billion year-over-year.

• Added 151 new projects, reaching a portfolio of 817, with over half from the U.S., and maintained high talent retention (95.8%-96%).

• Total backlog reached US$18.5 billion, supporting future growth, with US$10.5 billion in service backlog and US$8.0 billion in potential milestone backlog.

• Research, development, and manufacturing (R, D, M) segments all contributed to growth, with a focus on complex modalities and late-stage/commercial projects.

Financial highlights

• Revenue reached RMB 18.68 billion, up 9.6% year-over-year; non-COVID revenue up 13.1%.

• Adjusted EBITDA: RMB 8.00 billion, up 14.4% year-over-year; adjusted EBITDA margin 42.8%.

• Adjusted net profit: RMB 5.40 billion, up 9.0% year-over-year; adjusted EPS was RMB 1.17.

• Gross profit margin improved to 41% (adjusted: 45.4%), with margin expansion from operational efficiencies.

• Free cash flow was positive for the third consecutive year, at over RMB 1.3 billion.

Outlook and guidance

• 2025 revenue growth expected at 12-15%, or 17-20% excluding discontinued vaccine revenue.

• Anticipates significant growth in commercial manufacturing, with 24 PPQs scheduled for 2025, up from 16 in 2024.

• CapEx for 2025 projected at RMB 6 billion, focused on Singapore and U.S. expansion.

• Expects milestone payments of $40-80 million in 2025, supporting profitability.

• Improved profitability and robust positive free cash flow targeted for 2025.