Evotec SE Provides Guidance Update
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.
Evotec SE (NASDAQ: EVO) ha aggiornato le previsioni per l'anno fiscale 2024. L'azienda ora prevede:
- Entrate del gruppo pari a €790-820 milioni (crescita in percentuale bassa a medio singolo, in calo rispetto alla precedente crescita a due cifre basse)
- Spese per R&S di €50-60 milioni (riduzione in percentuale bassa a due cifre)
- EBITDA rettificato di €15-35 milioni (riduzione in percentuale media a due cifre, in calo rispetto alla precedente crescita a due cifre medie)
La revisione delle previsioni è dovuta a una conversione più lenta degli ordini di vendita e a una continua pressione sui margini dovuta all'alto costo fisso. Evotec sta implementando azioni per trasformare l'attività verso una crescita sostenibile e redditizia.
Evotec SE (NASDAQ: EVO) ha actualizado sus previsiones para el año fiscal 2024. La compañía ahora espera:
- Ingresos del grupo de €790-820 millones (crecimiento de un solo dígito bajo a medio, en comparación con el crecimiento de dos dígitos bajos anterior)
- Gastos en I+D de €50-60 millones (reducción de un solo dígito bajo a medio)
- EBITDA ajustado de €15-35 millones (reducción de un solo dígito medio, en comparación con el crecimiento de dos dígitos medios anterior)
La revisión de las previsiones se debe a una conversión más lenta de los pedidos de venta y a una presión continua sobre los márgenes por los altos costos fijos. Evotec está implementando acciones para transformar el negocio hacia un crecimiento rentable y sostenible.
Evotec SE (NASDAQ: EVO)가 2024 회계연도 예측을 업데이트했습니다. 회사는 이제 다음과 같은 예상을 하고 있습니다:
- 그룹 수익은 €790-820 백만 (저중간 단일 성장률, 이전의 저 이중 성장률에서 하락)
- 연구개발(R&D) 지출은 €50-60 백만 (저 이중 단위 수치 감소)
- 조정된 EBITDA는 €15-35 백만 (중간 이중 단위 수치 감소로, 이전의 중간 이중 성장률에서 하락)
예측 수정은 판매 주문 전환 속도가 느려짐과 고정 비용으로 인한 지속적인 마진 압박 때문입니다. Evotec는 지속 가능한 수익 성장으로 비즈니스를 전환하기 위한 조치를 시행하고 있습니다.
Evotec SE (NASDAQ: EVO) a mis à jour ses prévisions pour l'exercice fiscal 2024. L'entreprise s'attend désormais à :
- Des revenus de groupe de €790-820 millions (croissance de pourcentage faible à moyen à un chiffre, en baisse par rapport à une précédente croissance à deux chiffres faible)
- Des dépenses en R&D de €50-60 millions (réduction de pourcentage à un chiffre faible)
- Un EBITDA ajusté de €15-35 millions (réduction de pourcentage à deux chiffres moyens, en baisse par rapport à une précédente croissance à deux chiffres moyens)
La révision des prévisions est due à une conversion plus lente des commandes de vente et à une pression continue sur les marges causée par des coûts fixes élevés. Evotec met en œuvre des actions pour transformer l'entreprise vers une croissance durable et rentable.
Evotec SE (NASDAQ: EVO) hat seine Prognose für das Geschäftsjahr 2024 aktualisiert. Das Unternehmen erwartet nun:
- Gruppeneinnahmen von €790-820 Millionen (wachsend um einen niedrigen bis mittleren einstelligen Prozentsatz, im Gegensatz zum vorherigen niedrigen zweistelligen Wachstum)
- F&E-Ausgaben von €50-60 Millionen (Rückgang um einen niedrigen zweistelligen Prozentsatz)
- Bereinigtes EBITDA von €15-35 Millionen (Rückgang um einen mittleren zweistelligen Prozentsatz, im Vergleich zum vorherigen mittleren zweistelligen Wachstum)
Die Überarbeitung der Prognose ist auf langsame Umsatzauftragsumwandlung und anhaltenden Margendruck aufgrund hoher Fixkosten zurückzuführen. Evotec ergreift Maßnahmen, um das Geschäft in Richtung nachhaltigem und profitablen Wachstum zu transformieren.
- 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
- 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
Insights
Evotec's guidance update reveals significant challenges. The company has lowered expectations for revenue growth from low double-digit to low to mid-single-digit percentage, projecting
This downturn signals operational inefficiencies and margin pressure. The slower conversion of sales orders to revenue suggests potential issues in project execution or client onboarding. The high fixed cost base amidst these challenges indicates a need for strategic cost management. While R&D expenditure reduction (
The guidance update from Evotec reflects broader industry trends and market dynamics. The biotech sector has been facing headwinds, with funding constraints and increased scrutiny on R&D productivity. Evotec's focus on transforming the business towards "sustainable profitable growth" aligns with industry-wide shifts towards efficiency and value demonstration.
However, the significant downward revision in financial projections may erode investor confidence in the short term. The company's ability to navigate this transition period will be crucial. Market reaction will likely focus on Evotec's strategies to improve operational efficiency and accelerate revenue recognition, as well as its pipeline progress and partnership developments to offset the reduced R&D spend.
Evotec's guidance update underscores the need for a strategic pivot. The company's acknowledgment of a "priority reset" and focus on transformation is prudent but comes with execution risks. Key areas to watch include:
- Operational streamlining: Addressing the high fixed cost base without compromising core capabilities.
- Revenue acceleration: Improving the sales-to-revenue conversion process to enhance cash flow.
- Portfolio optimization: Balancing R&D cuts with maintaining a robust innovation pipeline.
- Partnership strategy: Leveraging collaborations to share costs and risks while driving growth.
The success of these initiatives will determine Evotec's ability to return to a growth trajectory and improve profitability in the medium term.
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
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