Evotec SE Reports Results for the First Half-year 2023 and Provides Corporate Updates
- Group revenues increased by 14% to €383.8m
- Adjusted Group EBITDA totaled €26.1m
- New alliances and collaborations reflect success of growth strategy
- Business outlook for FY 2023 confirmed
- Cyber-incident in Q2 temporarily reduced revenue growth
- NEW AND EXTENDED ALLIANCES UNDERLINE PIPELINE VALUE POTENTIAL
- NEW GUIDANCE FOR FULL-YEAR 2023 CONFIRMED
HAMBURG, GERMANY / ACCESSWIRE / August 29, 2023 / Evotec SE (Frankfurt Stock Exchange:EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ:EVO) today announced its financial results and corporate updates for the first half-year of 2023.
HIGHLIGHTS
Q2 CYBER-INCIDENT TEMPORARILY REDUNCING STRONG ORGANIC REVENUE GROWTH
- Group revenues increased by
14% to € 383.8 m (H1 2022: € 336.9 m) driven by strong demand for base business and successful partnering activities; like-for-like revenue growth (excluding fx-effects and M&A effects)14% - Total EVT Execute revenues (incl. intersegment revenues) up
2% to € 356.6 m (H1 2022: € 351.0 m), strongly affected by cyber-incident; EVT Innovate revenues up66% to € 129.7 m (H1 2022: € 78.0 m) - Adjusted Group EBITDA totalled € 26.1 m (H1 2022: € 33.6 m); delivery of Sandoz work packages and Bristol Myers Squibb ("BMS") collaboration yield excellent gross margin, partially compensating for underutilised capacities as a result of the cyber-attack in Q2
NEW AND EXTENDED ALLIANCES REFLECT SUCCESS OF GROWTH STRATEGY "ACTION PLAN 2025"
- New significant collaboration announced with Janssen
- Extensions and expansion of strategic neurodegeneration partnership with BMS, and strong progress in strategic targeted protein degradation partnership with BMS
- Commercial validation of Just - Evotec Biologics' strategy, new agreements with Sandoz and the U.S. Department of Defense (after period-end)
- Milestone payment received with first patient dosed in Phase I study of Bayer kidney disease programme
BUSINESS OUTLOOK FOR FULL-YEAR 2023 AND MID-TERM GOALS 2025 CONFIRMED
- Group revenues expected to be in a range of € 750 - 790 m (€ 765 - 805 m at constant exchange rates) (2022: € 751 m) in FY 2023
- Adjusted Group EBITDA guidance range between € 60 - 80 m (€ 70 - 90 m at constant exchange rates) (2022: € 102 m)
- Unpartnered research and development expenses expected to be in a range of € 60 - 70 m (2022: € 70 m)
Guidance 2023 | Guidance 2023 at constant fx 1) | Actual 31 December 2022 2) | |
| Group revenues | € 750 - 790 m | € 765 - 805 m | € 751 m |
| Unpartnered R&D expenses | € 60 - 70 m | - | € 70 m |
| Adjusted Group EBITDA | € 60 - 80 m | € 70 - 90 m | € 102 m |
1) Average exchange rate euro vs. US Dollar for 2023: 1.0530
2) Including effects related the M&A (Rigenerand, Central Glass Germany)
- Mid-term goals target revenue growth to > € 1,000 m and adjusted EBITDA of ≥ € 300 m and unpartnered research and development expenses of > € 100 m
Due to the discovery of a criminal cyber-attack on 6 April 2023, productivity was affected throughout the entire second quarter. In response to the criminal cyber-attack, Evotec took immediate action to contain and remediate the attack by taking its systems offline. This was deemed necessary to protect all the Company's partners and stakeholders and Evotec could ensure that integrity of scientific data remained unaffected. The Company re-started operations over the course of April with productivity reaching approx.
FINANCIAL HIGHLIGHTS
Key figures of unaudited consolidated income statement & segment information
Evotec SE & subsidiaries - First half-year 2023
In k€ | EVT Execute | EVT Innovate | Intersegment Eliminations | Evotec Group H1 2023 | Evotec Group H1 2022 |
| Revenues 1) | 254,150 | 129,685 | - | 383,835 | 336,875 |
| Intersegment revenues | 102,445 | 0 | (102,445) | 0 | 0 |
| Costs of revenue | (291,383) | (89,538) | 96,646 | (284,275) | (273,685) |
| Gross profit | 65,213 | 40,147 | (5,800) | 99,560 | 63,190 |
| Gross margin in % | - | ||||
| R&D expenses 2) | (2,356) | (34,306) | 5,800 | (30,863) | (36,838) |
| SG&A expenses | (67,338) | (20,855) | - | (88,192) | (67,379) |
| Other operating income (expense), net | (20,227) | 15,949 | - - | (4,278) | 37,738 |
| Net operating income (loss) | (24,708) | 934 | 0 | (23,773) | (3,307) |
| Adjusted EBITDA 3) | 22,572 | 3,526 | - | 26,099 | 33,636 |
1) Adjusted for exchange rate effects of € 0.8 m, Group revenues would have amounted to € 383.0 m
2) Includes unpartnered R&D expenses of € 29.0 m in H1 2023 (H1 2022: € 33.3 m)
3) Before changes in contingent consideration, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result
More detailed information and financial tables are available in our half-year report published on the Evotec website under the following link: https://www.evotec.com/en/investor-relations/publications
WEBCAST/CONFERENCE CALL
The Company is going to hold a conference call to discuss the results as well as to provide an update on its performance. The conference call will be held in English.
Webcast details
Date: Tuesday, 29 August 2023
Time: 2.00 pm CEST (01.00 pm BST, 08.00 am EDT)
To join the audio webcast and to access the presentation slides, please register via this link.
The on-demand version of the webcast will be available on our website: www.evotec.com/financial-reports.
Conference call details
To join via phone, please pre-register via this link . You will then receive a confirmation email with dedicated dial-in details such as telephone number, access code and PIN to access the call.
A simultaneous slide presentation for participants dialling in via phone is available under this link.
ABOUT EVOTEC SE
Evotec is a life science company with a unique business model that delivers on its mission to discover and develop highly effective therapeutics and make them available to the patients. The Company's multimodality platform comprises a unique combination of innovative technologies, data and science for the discovery, development, and production of first-in-class and best-in-class pharmaceutical products. Evotec leverages this "Data-driven R&D Autobahn to Cures" for proprietary projects and within a network of partners including all Top 20 Pharma and over 800 biotechnology companies, academic institutions, as well as other healthcare stakeholders. Evotec has strategic activities in a broad range of currently underserved therapeutic areas, including e.g. neurology, oncology, as well as metabolic and infectious diseases. Within these areas of expertise, Evotec aims to create the world-leading co-owned pipeline for innovative therapeutics and has to-date established a portfolio of more than 200 proprietary and co-owned R&D projects from early discovery to clinical development. Evotec operates globally with more than 5,000 highly qualified people. The Company's 17 sites offer highly synergistic technologies and services and operate as complementary clusters of excellence. For additional information please go to www.evotec.com and follow us on X/Twitter @Evotec and LinkedIn .
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements concerning future events, including the proposed offering and listing of Evotec's securities. Words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding Evotec's expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Evotec's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Media Contact Evotec SE:
Gabriele Hansen, SVP Head of Global Corporate Communications, Gabriele.Hansen@evotec.com
Hinnerk Rohwedder, Director of Global Corporate Communications, Hinnerk.Rohwedder@evotec.com
IR Contact Evotec SE:
Volker Braun, SVP Head of Global Investor Relations & ESG, Volker.Braun@evotec.com
SOURCE: Evotec SE
View source version on accesswire.com:
https://www.accesswire.com/777937/Evotec-SE-Reports-Results-for-the-First-Half-year-2023-and-Provides-Corporate-Updates
