Evotec SE Reports Results for the First Nine Months 2021 and Provides Corporate Update

Rhea-AI Summary

Evotec SE announced its financial results for the first nine months of 2021, reporting a 20% revenue increase to €431.0 million, with milestone revenues jumping to €27.9 million. The company's Just - Evotec Biologics segment also performed strongly, contributing €34.7 million. Adjusted EBITDA stood at €70.1 million, affected by increased costs ahead of production. Despite strong operational performance and ongoing expansion, a cautious outlook is maintained due to potential impacts from the COVID-19 pandemic. Evotec confirmed its guidance for full-year revenues between €550 million and €570 million.

Positive

• Group revenues increased by 20% to €431.0 million.
• Milestone revenues rose significantly to €27.9 million.
• Just - Evotec Biologics contributed €34.7 million, 43% higher than last year.
• Adjusted EBITDA was €70.1 million, only slightly down from last year.

Negative

• Adjusted Group EBITDA decrease primarily due to increased costs of sales.
• Potential negative impact from COVID-19 pandemic on guidance.

• STRONG OPERATIONAL PERFORMANCE LEADS TO SIGNIFICANT REVENUE GROWTH
• CO-OWNED PIPELINE GAINING MOMENTUM
• J.POD ^(R) REDMOND (US) OPERATIONAL
• SUCCESSFUL PUBLIC OFFERING AT NASDAQ (AFTER PERIOD-END)
• GUIDANCE FOR FULL-YEAR 2021 CONFIRMED
• WEBCAST AND CONFERENCE CALL TODAY AT 02.00 PM CET

HAMBURG, GERMANY / ACCESSWIRE / November 11, 2021 / Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ: EVO) today announced the financial results and corporate updates for the first nine months 2021.

HIGHLIGHTS

STRONG REVENUES GROWTH IN ALL BUSINESS AREAS FUELS ONGOING EXPANSION AND STRENGTHENS POSITIVE DEVELOPMENT

• Group revenues increased by 20% to € 431.0 m (9M 2020: € 360.4 m); like-for-like base revenue growth (excluding portfolio and fx effects) up 26%
• Milestone revenues of € 27.9 m well above last year (9M 2020: € 8.4 m)
• Just - Evotec Biologics contributed € 34.7 m to revenues; 43% above last year's level of € 24.3 m
• Strong progress in both segments: Total EVT Execute revenues up 17% to € 429.8 m (9M 2020: € 367.5 m); EVT Innovate revenues up 35% to € 101.9 m (9M 2020: € 75.7 m)
• Adjusted Group EBITDA of € 70.1 m (9M 2020: € 76.9 m) primarily driven by higher costs of sales ahead of production start of J.POD ^(R) Redmond (US), a deliberate increase in unpartnered R&D (up 28%), the overall growth of Evotec and effects from the US public offering; like-for-like growth (excluding portfolio and fx effects) would have reached 16%.
• Other non-operating result increased significantly to € 228.8 m (9M 2020: € (15.9) m) mainly due to fair value adjustments of the equity participation in Exscientia Ltd.

DATA-DRIVEN AUTOBAHN TO CURES: STRONG PROGRESS IN ALL LANES

• Several new and extended drug discovery and development agreements in all areas
• Just - Evotec Biologics opened J.POD ^(R) Redmond (US); start operations on track; project initiation of J.POD ^(R) Toulouse (France) in 2021
• Positive Phase IIb results in refractory chronic cough for eliapixant reported by partner Bayer
• Excellent progress in iPSC and protein degradation collaborations with Bristol Myers Squibb (BMS); Opt-in for EVT8683 to enter clinical development
• Kazia Therapeutics Limited has commenced enrolment to a Phase I clinical trial of EVT801, an investigational cancer therapy (after period-end)
• Successful NASDAQ IPO of EVO equity portfolio company and partner Exscientia Ltd (after period-end); Series B extension by Evotec's first spin-off Topas Therapeutics

CORPORATE

• Closing of public offering at NASDAQ on 08 November 2021, with notice from underwriters on 05 November 2021 of their intention to partially exercise their option to purchase additional ADSs (after period-end)

CONFIRMATION OF BUSINESS OUTLOOK FOR FULL-YEAR 2021 AND MID-TERM TARGETS 2025

• Group revenues expected to be in a range of € 550 - 570 m (€ 565 - 585 m at constant exchange rates) (2020: € 500.9 m)
• Adjusted Group EBITDA expected to be in the range of € 105 - 120 m (€ 115 - 130 m at constant exchange rates) (2020: € 106.6 m)
• Unpartnered research and development expenses expected to be in a range of € 50 - 60 m (2020: € 46.4 m)
• Mid-term goals target revenue growth to > € 1,000 m, adjusted EBITDA of >= € 300 m and unpartnered research and development expenses of > € 100 m by 2025

Given current global insecurities surrounding the COVID-19 pandemic, a likely negative impact - though less pronounced than in 2020 - is already estimated within the guidance for revenues and adjusted EBITDA stated above.

More detailed information and financial tables are available in our nine-month report published on the Evotec website under the following link: https://www.evotec.com/en/investor-relations/publications

FINANCIAL HIGHLIGHTS

The following table provides an overview of the financial performance in the first nine months of 2021 compared to the same period in 2020.

Key figures of consolidated income statement & segment information>
Evotec SE & subsidiaries - First nine months of 2021

In T€	EVT Execute4)	EVT Innovate5)	Intersegment Eliminations	Evotec Group 9M 2021	Evotec Group 9M 2020
External revenues1)	329,023	101,940	-	430,963	360,414
Intersegment revenues	100,751	-	(100,751)	-	-
Costs of revenues	(343,418)	(79,781)	91,705	(331,494)	(271.225)
Gross profit	86,356	22,159	(9,046)	99,469	89,189
Gross margin in %	20.1	21.7	-	23.1	24.7
R&D expenses2)	(2,120)	(60,398)	9,046	(53,472)	(46,077)
SG&A expenses	(56,714)	(14,323)	-	(71,037)	(58,132)
Impairments of intangible assets and goodwill	-	(683)	-	(683)	-
Other operating income (expenses), net	17,539	34,237	-	51,776	50,306
Operating result	45,061	(19,008)	-	26,053	35,286
Adjusted EBITDA3)	85,985	(15,899)	-	70,086	76,942

1. Adjusted for negative exchange rate effects of € 11.2 m, Group revenues amount to € 442.1 m
2. Of which unpartnered R&D expenses of € 42.6 m in 9M 2021 (9M 2020: € 33.4 m)
3. Before changes in contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result
4. Revenues from material recharges of € 23.6 m are allocated to EVT Execute as of 9M 2021
5. Revenues from material recharges of € 1.2m are allocated to EVT Innovate as of 9M 2021

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.

Conference call details
Date: Thursday, 11 November 2021
Time: 02.00 pm CET (08.00 am ET, 01.00 pm GMT)

From Germany: +49 69 20 17 44 220
From France: +33 170 709 502
From Italy: +39 023 600 6663
From Switzerland: +41 445 806 522
From UK: +44 20 3009 2470
From USA: +1 877 423 0830
Access Code: 82123163#

A simultaneous slide presentation for participants dialling in via phone is available at https://www.webcast-eqs.com/evotec20211111/no-audio .

Webcast details
To join the audio webcast and to access the presentation slides you will find a link on our homepage http://www.evotec.com shortly before the event.

A replay of the conference call will be available for seven days and can be accessed from Germany by dialling +49 69 201744221, from UK by dialling +44 20 3364 5150 and from USA by dialling +1 (844) 307-9362.

The access code is 315614529#. The on-demand version of the webcast will be available on our website: https://www.evotec.com/en/investor-relations/publications and under the direct link https://www.webcast-eqs.com/evotec20211111 .

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 4,000 highly qualified people. The Company's 14 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 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 completion of the offering. 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.

IR Contact Evotec SE:
Volker Braun, SVP Head of Global Investor Relations & ESG, Phone: +49.(0)40.56081-775, volker.braun@evotec.com

SOURCE: Evotec AG

View source version on accesswire.com:
https://www.accesswire.com/672312/Evotec-SE-Reports-Results-for-the-First-Nine-Months-2021-and-Provides-Corporate-Update

FAQ

What were the revenue figures for Evotec SE in the first nine months of 2021?

Evotec SE reported revenues of €431.0 million, marking a 20% increase from the previous year.

How did the milestone revenues for Evotec SE perform in 2021?

Milestone revenues for Evotec SE increased to €27.9 million in the first nine months of 2021.

What is the adjusted EBITDA for Evotec SE in 2021?

Evotec SE's adjusted EBITDA for the first nine months of 2021 was €70.1 million.

What is Evotec SE's revenue guidance for the full year 2021?

Evotec SE expects full-year revenues to be between €550 million and €570 million.

What challenges does Evotec SE face moving forward?

Evotec SE faces potential negative impacts due to the ongoing COVID-19 pandemic.