Evotec SE(EVO)2024-08-14 10:01Revenue and Income - Revenues increased by €30.0 million, or 4%, from €751.4 million in 2022 to €781.4 million in 2023, driven by contributions from BMS and a new deal with Sandoz [202]. - Total revenues for Evotec Group increased to €781.4 million in 2023 from €751.4 million in 2022 [217]. - Revenues increased by €30 million, from €751.4 million in 2022 to €781.4 million in 2023, with €9.4 million related to private grants [224]. - Net income (loss) for 2023 was a loss of €83.9 million, compared to a loss of €175.7 million in 2022 [200]. - Net income improved by €91.7 million, or 52.2%, from a loss of €(175.7) million in 2022 to a loss of €(83.9) million in 2023 [224]. Costs and Expenses - Costs of revenue rose by €29.0 million, or 5.0%, from €577.4 million in 2022 to €606.4 million in 2023, primarily due to accelerated expenses for Biologics [203]. - Gross profit remained stable at €175.1 million in 2023, with a gross margin decrease to 22.4% from 23.2% in 2022 [200]. - R&D expenses decreased by €8.1 million, or 10.6%, from €76.6 million in 2022 to €68.5 million in 2023, reflecting lower expenses in Q2 [206]. - Other operating income decreased by €16.8 million, or 20.6%, from €81.6 million in 2022 to €64.8 million in 2023, mainly due to reduced income from Sanofi [209]. - Other operating expenses surged by €42.2 million, from €2.0 million in 2022 to €44.2 million in 2023, largely attributed to costs related to a cyber-attack [210]. - Adjusted EBITDA decreased by €35.3 million, or 35%, from €101.7 million in 2022 to €66.4 million in 2023 [226]. Financial Performance Metrics - Measurement result from investments improved by €163.0 million, from €(172.2) million in 2022 to €(9.1) million in 2023, primarily due to the fair value increase of Exscientia plc [213]. - Financial income increased by €0.9 million, or 11.1%, from €8.3 million in 2022 to €9.3 million in 2023 due to higher interest rates on short-term investments [211]. - Interest expense decreased by €1.4 million, or 10.7%, from €13.1 million in 2022 to €11.7 million in 2023 [212]. - Current tax expense decreased by €18.4 million, or 84.7%, to €3.3 million in 2023 from €21.7 million in 2022 [216]. Segment Performance - The EVT Innovate segment saw a revenue increase of €62.2 million, or 30%, from €204.7 million in 2022 to €266.9 million in 2023, driven by fee-for-service and FTE revenue [202]. - Segment operating income in the EVT Execute segment decreased by €75.5 million, or 232%, from €32.5 million in 2022 to €(43.0) million in 2023 [216]. - Segment Adjusted EBITDA in the EVT Execute segment decreased by €42.9 million, or 40%, from €108.3 million in 2022 to €65.4 million in 2023 [219]. - Segment operating loss in the EVT Innovate segment decreased by €7.2 million, or 62%, from €(11.7) million in 2022 to €(4.5) million in 2023 [219]. Customer Metrics - The number of customers increased from 819 in 2022 to 838 in 2023, while customers contributing over €1 million decreased from 118 to 102 [229][230]. - Annual repeat business rose to 93% in 2023 from 92% in 2022, indicating strong customer retention [231]. Cash Flow and Financing - As of December 31, 2023, cash and cash equivalents totaled €510.9 million, with undrawn credit lines amounting to €141.1 million [232]. - The company has drawn €93.3 million from a new €150 million financing agreement with the European Investment Bank as of December 31, 2023 [234]. - Total loan maturities for 2023 amounted to €436.1 million, up from €329.9 million in 2022 [236]. - For the fiscal year ended December 31, 2023, net cash flows from operating activities generated €36.4 million, despite a net loss of €84 million [242]. - Cash used in investing activities for the year ended December 31, 2023, amounted to €13.3 million, including €213.3 million for property, plant, and equipment [243]. - Net cash provided by financing activities for the year ended December 31, 2023, was €72.0 million, primarily from R&D and investment financing of €112.9 million [244]. - The repayment of lease obligations in financing activities for 2023 amounted to €22.4 million [244]. Future Investments - The company plans to invest approximately €170 million in capital expenditures in 2024, with €80 million allocated for two J.POD facilities [239]. - The company expects to commit roughly €90 million in new capital expenditures in 2024 for various facility expansions and lab equipment [239]. Currency and Risk Management - For the year ended December 31, 2023, 65% of the company's revenue was generated in U.S. dollars, and 11% in pound sterling [411]. - The company recorded a total cash outflow of €95,111 thousand for the year ended December 31, 2023, compared to a cash outflow of €265,131 thousand in 2022 [241]. - As of December 31, 2023, one customer accounted for 6% of the company's trade receivables, down from 22% in 2022, indicating improved credit risk management [416].