Prenetics Reinforces Strategic Focus on IM8, Divests Europa Business For Up to $13 Million

Core Insights - Prenetics Global Limited has completed the sale of its 3PL distribution business, Europa Sports Partners, valued at up to $13 million, to focus on its IM8 brand [1][2][3] - The company maintains a strong balance sheet with over $70 million in cash and cash equivalents, 510 BTC, and zero debt, totaling approximately $118 million in liquidity [1][3] - The divestiture is part of Prenetics' strategic portfolio optimization, following the $72 million sale of ACT Genomics in October 2025, aimed at concentrating resources on the high-growth IM8 business [3][5] Financial Performance - The sale of the Europa business, completed on January 1, 2026, will not impact the company's revenue for fiscal year 2025, which will include the full-year contribution from Europa [4] - Prenetics projects total revenues from IM8 to be between $180 million and $200 million for the full year 2026 [3] - The divestiture is expected to improve operating margins starting Q2 2026, as the company will no longer incur approximately $6 million in operating losses from the Europa business [6] Strategic Focus - The sale allows Prenetics to sharpen its focus on IM8, which is rapidly scaling across international markets, aligning with the company's long-term logistics and global expansion requirements [2][5] - Prenetics plans to continue reviewing its remaining non-core assets, including a 35% stake in Insighta, valued at $70 million, to further simplify its business structure [7] - The company is optimistic about the future opportunities for IM8, which has achieved over $100 million in annual recurring revenue within 11 months of launch [8]