Trinity Biotech Announces Results for Q1, 2021

Rhea-AI Summary

Trinity Biotech (TRIB) reported a 20.9% revenue increase for Q1 2021, totaling $25.6 million, compared to $21.2 million in Q1 2020. Point-of-Care revenues fell 43.4% to $1.9 million due to COVID-19 related delays in HIV test orders. Conversely, Clinical Laboratory revenues grew 32.9% to $23.7 million, driven by strong sales of COVID-19 products, particularly PCR Viral Transport Media. Gross profit rose 17.6% to $10.9 million, but gross margin decreased to 42.6%. Overall, the company shows resilience amid pandemic challenges with expectations for revenue recovery in the Point-of-Care segment.

Positive

• Q1 2021 total revenues increased by 20.9% to $25.6 million.
• Clinical Laboratory revenues surged by 32.9% to $23.7 million, largely due to COVID-19 related products.
• Gross profit rose 17.6% to $10.9 million.

Negative

• Point-of-Care revenues decreased by 43.4% to $1.9 million.
• Gross margin decreased from 43.8% in Q1 2020 to 42.6% in Q1 2021.

DUBLIN, Ireland, May 25, 2021 (GLOBE NEWSWIRE) -- Trinity Biotech plc (Nasdaq: TRIB), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended March 31, 2021.

Quarter 1 Results

Total revenues for Q1, 2021 were $25.6m which compares to $21.2m in Q1, 2020, an increase of 20.9% and which were broken down as follows:

	2020 Quarter 1	2021 Quarter 1	Increase/ (decrease)
	US$’000	US$’000	%
Point-of-Care	3,335	1,888	(43.4%)
Clinical Laboratory	17,842	23,706	32.9%
Total	21,177	25,594	20.9%

Point-of-Care revenues for Q1, 2021 decreased from $3.3m to $1.9m when compared to Q1, 2020, a decrease of 43.4%. This was primarily due to a delay in the issue of HIV rapid test orders from Africa as a result of COVID-19. We are seeing evidence of these COVID-19 driven delays abating and it is expected that Point-of-Care revenues will increase as 2021 progresses.

Clinical Laboratory revenues increased from $17.8m to $23.7m, which represents an increase of 32.9% compared to Q1, 2020. This increase was primarily due to strong sales of products within our COVID-19 related portfolio of products, with our PCR Viral Transport Media products continuing to be the most significant contributor to revenue within that portfolio. This was partially offset by lower revenues in certain aspects of our business that have not yet returned fully to pre-Covid levels. These include lower testing volumes at our Autoimmunity reference laboratory in New York and our Haemoglobins business which continues to be affected by the deferral of Diabetes instrument purchases as healthcare resources remain stretched by the pandemic.

Gross profit for Q1, 2021 increased from $9.3m to $10.9m when compared to Q1, 2020, a 17.6% increase. The gross margin of 42.6% for Q1, 2021 was lower than the 43.8% achieved in Q1, 2020, with the reduction contributed to by sales mix changes and downward pricing pressure on PCR Viral Transport Media and related collection products due to lower demand, with some customers stockpiling supplies in Q4, 2020, plus the impact of the roll out of vaccination programs on COVID-19 testing.

Research and Development expenses remained broadly flat at $1.4m, whilst primarily cost savings in selling related expenditures resulted in a slight decrease in Selling, General and Adminis

FAQ

What were Trinity Biotech's Q1 2021 revenue results?

Trinity Biotech reported total revenues of $25.6 million for Q1 2021, up 20.9% from Q1 2020.

How did Point-of-Care revenues perform in Q1 2021 for TRIB?

Point-of-Care revenues fell by 43.4% to $1.9 million in Q1 2021 due to COVID-19 related delays.

What contributed to the increase in Clinical Laboratory revenues for TRIB?

Clinical Laboratory revenues increased by 32.9% to $23.7 million, driven by strong sales of COVID-19 related products.

What was the gross profit and margin for TRIB in Q1 2021?

Trinity Biotech recorded a gross profit of $10.9 million with a gross margin of 42.6% in Q1 2021.