Evotec SE(US:EVO)2025-08-13 11:01Revenue Performance - Group revenues decreased by 5.0% to €371.2 million for the first six months of 2025, compared to €390.8 million in the same period of 2024[13] - Discovery and Preclinical Development revenues fell by 11.0% to €269.0 million, while Just – Evotec Biologics revenues increased by 15.6% to €102.2 million[20][25] - Revenue for the six months ended June 30, 2025, was €371.2 million, a decrease of 5% from €390.9 million in the same period of 2024[51] - Total revenue for the first six months of 2025 was €371,213k, a decrease from €390,850k in the first half of 2024, representing a decline of approximately 5%[82][85] - Revenue from contracts with customers in 2025 included €316,756k from fee-for-service and FTE-based research payments, down from €341,367k in 2024, indicating a decrease of about 7%[82][85] - The USA contributed €212,758k to total revenue in the first half of 2025, accounting for approximately 57% of total revenue, compared to €222,747k in the same period of 2024[82][85] Financial Performance - Adjusted Group EBITDA for the first half of 2025 was €(1.9) million, compared to €(0.5) million in the same period of 2024, reflecting lower revenues[19] - The net loss improved to €(75.1) million from €(115.6) million in the first half of 2024, mainly due to non-recurring reorganization costs[18] - The net loss for the six months ended June 30, 2025, was €75.1 million, compared to a net loss of €115.6 million in the same period of 2024[52] - The operating loss for the first six months of 2025 was €47,782k, compared to an operating loss of €122,813k in the same period of 2024, showing an improvement of about 61.0%[75] - Adjusted EBITDA for the first half of 2025 was a loss of €1,850k, compared to a loss of €9,329k in the first half of 2024, indicating a significant improvement[78] - Adjusted EBITDA for the first six months of 2025 was a loss of €467k, compared to a loss of €3,767k in the same period of 2024[79] Expenses and Cost Management - R&D expenses decreased by 35.2% to €19.0 million, down from €29.3 million in the first half of 2024, focusing on selected projects[14][22] - SG&A expenses were reduced by 2.8% to €89.3 million, compared to €91.9 million in the prior year[15] - Other operating income increased to €29.6 million, driven by an insurance reimbursement related to a cyber-attack, compared to €24.2 million in the same period last year[16] - In the first half of 2025, share-based compensation expense recognized was €3,246k, significantly up from €713k in the same period of 2024[120] Liquidity and Financial Position - Total liquidity decreased to €348.0 million as of June 30, 2025, down from €396.8 million at the end of 2024[31] - Cash and cash equivalents at the end of the period were €267.8 million, down from €306.4 million at the beginning of the year[53] - Total financial assets amounted to €606,909k, with cash and cash equivalents at €302,825k and receivables at €162,353k[110] - Financial liabilities totaled €530,663k, including loans and borrowings of €287,556k and trade account payables of €85,792k[110] Equity and Assets - Total stockholders' equity decreased by €106.7 million to €845.8 million as of June 30, 2025, from €952.5 million on December 31, 2024[40] - The equity ratio decreased to 46.8% as of June 30, 2025, down from 49.8% on December 31, 2024[41] - As of June 30, 2025, total assets decreased to €1,808,259k from €1,912,502k as of December 31, 2024, reflecting a decline of approximately 5.4%[55] - Property, plant, and equipment decreased to €782,702k as of June 30, 2025, down from €823,937k at the end of 2024, primarily due to foreign exchange effects and depreciation[88] - Goodwill amounted to €275,207k as of June 30, 2025, a decrease from €282,854k at the end of 2024, attributed to changes in exchange rates[90] Future Guidance and Strategic Initiatives - Group revenues are expected to be in the range of €760 – 800 million for 2025, with an adjusted EBITDA target of €30 – 50 million[9] - Revenue guidance for FY2025 has been updated to a range of €760m to €800m, down from the previous guidance of €840m to €880m[124] - R&D guidance for FY2025 is projected at €40m to €50m, while adjusted EBITDA guidance remains at €30m to €50m[124] - The company announced a non-binding agreement with Sandoz AG for the potential sale of Just – Evotec Biologics EU, including the J.POD facility in Toulouse[7] - Evotec signed a non-binding term sheet for the sale of Just – Evotec Biologics EU SAS to Sandoz AG, pending regulatory requirements[125] Organizational Changes - The company appointed Paul Hitchin as the new Chief Financial Officer effective March 1, 2025, as part of its organizational adjustments[69] - The company continued its priority reset to profitable growth, which included targeted workforce reductions in specific functions and geographies[68] - The segment previously known as "Shared R&D" was renamed to "Discovery and Preclinical Development" to better reflect the company's strategic focus[71] - The number of employees decreased by 1.4% to 4,759 as of June 30, 2025, from 4,827 at the end of 2024, reflecting organizational adjustments[42] Legal and Compliance Matters - An arbitral court decision on July 14, 2025, requires Evotec to make retroactive lease payments in the low seven-figure range, with provisions set up as of June 30, 2025[123] - Reorganization costs charged against provisions amounted to €12,710k in the first half of 2025, with a remaining balance of €11,237k related to employee termination benefits and other direct costs[98][99]