PolyPeptide provides market update
The EBITDA margin for the first half of 2022 is expected to be around 20% of revenue.
Media Release – ad hoc announcement pursuant to Art. 53 LR
Baar, 12 July 2022 – PolyPeptide Group AG (PolyPeptide), a global leader in peptide and oligonucleotide development and manufacturing, today provides a market update. While investing to implement its growth strategy, PolyPeptide expects a drop in profitability in the first half of 2022 versus the first half of 2021. The EBITDA margin for the first half of 2022 is expected to be around 20% of revenue.
This development is attributable to a combination of reasons. The first half of 2021 was an exceptionally strong period with a favorable business mix, and revenue for the first half of 2022 will be more or less flat versus the same period last year. Then, PolyPeptide was affected by an increase in raw material, energy and consumable prices as well as higher wage inflation that could not yet be passed to customers. Finally, PolyPeptide continued to build the organization to support business growth by increasing average full-time equivalents across manufacturing sites by around 13% compared to end of June 2021.
In addition, given the current evolution of the coronavirus pandemic, PolyPeptide expects a shift to 2023 of part of the remaining 2022 revenue associated to COVID-19. More details on the half-year 2022 results as well as an update on the full-year guidance will be presented on 19 August 2022 with the scheduled earnings release.
PolyPeptide is committed to its strategic growth agenda given the long-term potential of its core peptide and oligonucleotide business: it continues to invest in capacity expansion to meet the expected demand from its phase III custom projects, and continues to focus on pipeline building, leading to an increase of its active custom projects pipeline from 181 projects at the end of June 2021 to 218 projects at the end of June 2022.