Transformational progress taking shape, profitability impacted by rapid expansion – appointment of Marc Augustin as new CFO
Ad hoc announcements pursuant to Art. 53 LR
Baar, 15 August 2023 – PolyPeptide today announced its results for H1 2023, updated guidance for 2023 and the appointment of its new CFO:
- Reported results in line with market update provided on 13 July 2023, with revenue of EUR 131.8 million, representing a 1.4% decline versus H1 2022 and 2.9% growth at constant currency rates. EBITDA of EUR -19.4 million versus 26.7 million in H1 2022, with more than half of the decline related to changes in cost absorption and a one-off inventory write-down.
- Growth excluding revenue associated with the coronavirus pandemic was 29.3%, displaying strong peptide-driven momentum.
- As at 30 June 2023, therapeutic area of metabolic diseases accounted for 43% of revenue compared to 28% as at 30 June 2022; over the same period, the revenue share of large pharma customers increased to 65%, up from 41%; trends expected to continue as PolyPeptide advances partnerships in the metabolic and rare disease markets with large pharma customers underpinned by a strong active custom projects pipeline driving transformational progress.
- Pipeline of 226 active custom projects as at 30 June 2023 (220 end of 2022); secured 17 new peptide and oligonucleotide projects, of which 6 are with new customers; 31 (30 end of 2022) projects in phase III of clinical development.
- Updated guidance for 2023: priority is to fulfill customer demand and to continue to grow, while implementing operational and profitability improvement initiatives. The Group now aims for mid to high single-digit percentage revenue growth versus 2022. At the lower end of that range, EBITDA is expected to be around break-even, excluding the EUR 9.5 million write-down of inventory in H1 2023. As previously announced, the Group will end 2023 with a net loss.
- Appointment of Marc Augustin as CFO and member of the Executive Committee; he joins PolyPeptide during the course of Q1 2024 with a strong background in a high-growth CDMO environment as well as with deep finance and operational experience.
- Audio webcast and conference call will take place today at 9:30 am CEST (details see page 5).
Juan-José Gonzalez, CEO of PolyPeptide: “Our market is accelerating, and we are focused on maximizing its potential. With the strong peptide-driven momentum in H1 2023 and the notable shift in the revenue mix toward metabolic and large pharma, PolyPeptide’s transformation into a global large-scale CDMO is underway. Our investments in capacity expansion are starting to pay off, though we still have work to improve our operational performance and profitability, which is a key objective for H2 2023.”
[…]