PolyPeptide with encouraging progress within custom projects pipeline – however with lower profitability in the first half of 2022
Baar, 19 August 2022 – PolyPeptide Group AG (SIX: PPGN), a focused global CDMO for peptide- and oligo-nucleotide-based active pharmaceutical ingredients, today announced its detailed results for the first half of 2022, following the market update provided on 12 July 2022:
- Revenue of EUR 133.7 million in H1 2022 (down 1.1%, or 3.3% at constant currency rates, compared to
H1 2021), including revenue associated with the coronavirus pandemic of around EUR 33 million (broadly stable versus H1 2021) - Adjusted EBITDA[1],[2] of EUR 26.7 million (H1 2021: EUR 43.2 million), with adjusted EBITDA margin of 20.0% (32.0%), reflecting the combined impact of an increased cost base ahead of planned growth and a more demanding operating environment; result for the period of EUR 10.2 million (EUR 24.6 million)
- Capital expenditures of EUR 37.9 million or 28.4% of revenue (EUR 25.0 million or 18.5% of revenue), reflecting capacity requirements to support active custom projects pipeline
- 218 active custom projects at the end of June 2022 (compared to 181 at 30 June 2021 and 196 at
31 December 2021), with several new oligonucleotide projects - Updated guidance for 2022, driven by a shift of a portion of the coronavirus pandemic-related business on order for H2 into 2023 and by continued inflationary pressure: revenue growth now expected at between
8% to 10% with adjusted EBITDA margin of between 22% and 25%; growth and partial margin recovery in
H2 driven by peptides business - Updated mid-term outlook: business expected to grow with a revenue CAGR in the low-teens with varying growth rates year-by-year and a continuous progression of the adjusted EBITDA margin towards 30%
- Results presentation with live audio webcast and telephone conference followed by Q&A to take place today at 9.30am CET (details see page 4)
Raymond De Vré, Chief Executive Officer of PolyPeptide, commented:
“In the first half of 2022, we experienced the combined impact of an increased cost base ahead of planned growth and a more demanding operating environment, including a surge of inflation in the second quarter. Compared to the strong previous-year period, this resulted in a substantial and larger-than-expected drop in profitability. On the positive side, we continued to see encouraging progress in our active custom projects pipeline and consistently executed on our late-stage phase III pipeline. For the second half of 2022, we expect revenue growth and a partial margin recovery to be driven by our peptides business.”
[1] This media release and the Key figures table include references to operational indicators, such as customer projects, and alternative financial performance measures (APM) that are not defined or specified by IFRS. These APM should be regarded as complementary information to and not as substitutes of the Group’s consolidated financial results based on IFRS. For the definitions of the main operational indicators and APM used, including related abbreviations, as well as for selected reconciliations to IFRS, please refer to the section “Definitions and reconciliations” of the Half-year Report 2022.
[2] For H1 2022, no EBITDA adjustments were recognized. Adjusted EBITDA for H1 2021 excludes one-off IPO costs of EUR 5.7 million, partly offset by US government loans of EUR 2.4 million waived in context of the coronavirus pandemic.