Evotec SE Provides Guidance Update

Rhea-AI Summary

Evotec SE (NASDAQ: EVO) has updated its fiscal year 2024 guidance. The company now expects:

• Group revenues of €790-820 million (low to mid-single-digit percentage growth, down from previous low double-digit growth)
• R&D expenditures of €50-60 million (low double-digit percentage reduction)
• Adjusted EBITDA of €15-35 million (mid double-digit percentage reduction, down from previous mid double-digit growth)

The guidance revision is due to slower sales order conversion and continued margin pressure from high fixed costs. Evotec is implementing actions to transform the business towards sustainable profitable growth.

Positive

• Company is taking actions to transform the business towards sustainable profitable growth
• R&D expenditures are expected to decrease by a low double-digit percentage

Negative

• Group revenue growth forecast reduced from low double-digit to low to mid-single-digit percentage
• Adjusted EBITDA guidance lowered from mid double-digit percentage growth to mid double-digit percentage reduction
• Slower than anticipated conversion of sales orders into revenues
• Continued pressure on margins due to high fixed cost base

HAMBURG, GERMANY / ACCESSWIRE / August 6, 2024 / Evotec SE (Frankfurt Stock Exchange:EVT, MDAX/TecDAX, Prime Standard, ISIN: DE 000 566480 9, WKN 566480; NASDAQ: EVO) announces that it has refined its guidance for the fiscal year 2024.

The Company expects Group revenues in the range of € 790 - 820 m (low to mid-single-digit percentage growth vs previously low double-digit percentage growth; 2023: € 781.4 m);

R&D expenditures are expected in a range of € 50 - 60 m (low double-digit percentage reduction vs previously mid-single to low double-digit percentage reduction; 2023: € 64.8 m);

Adjusted EBITDA is expected to reach € 15 - 35 m (mid double-digit percentage reduction vs previously mid double-digit percentage growth; 2023: € 66.4 m).

The primary drivers of lower revenue and adjusted EBITDA guidance are related to the slower than anticipated conversion of sales orders into revenues and continued pressure on margins due to a still high fixed cost base. However, the priority reset is fully on track and actions are underway to transform the business towards sustainable profitable growth.

Contact: Volker Braun, EVP Head of Global Investor Relations & ESG, Evotec SE, Manfred Eigen Campus, Essener Bogen 7, 22419 Hamburg, Germany, Phone: +49 (0) 151 1940 5058 (m), volker.braun@evotec.com

SOURCE: Evotec SE

View the original press release on accesswire.com

FAQ

What is Evotec's updated revenue guidance for fiscal year 2024?

Evotec SE (EVO) has updated its fiscal year 2024 revenue guidance to €790-820 million, representing a low to mid-single-digit percentage growth compared to 2023.

How has Evotec's adjusted EBITDA guidance changed for 2024?

Evotec's adjusted EBITDA guidance for 2024 has been revised downward to €15-35 million, representing a mid double-digit percentage reduction compared to 2023, instead of the previously forecasted mid double-digit percentage growth.

What factors led to Evotec's guidance update on August 6, 2024?

Evotec's guidance update was primarily driven by slower than anticipated conversion of sales orders into revenues and continued pressure on margins due to a still high fixed cost base.

What is Evotec's revised R&D expenditure forecast for 2024?

Evotec SE (EVO) now expects R&D expenditures in the range of €50-60 million for fiscal year 2024, representing a low double-digit percentage reduction compared to 2023.