Evotec SE reports results for the first half-year 2022 and provides corporate updates

DGAP-News: Evotec SE

/ Key word(s): Half Year Results

Evotec SE reports results for the first half-year 2022 and provides corporate updates
11.08.2022 / 07:01 CET/CEST

The issuer is solely responsible for the content of this announcement.

 

  • BASE BUSINESS, NEW AND EXTENDED ALLIANCES DRIVE 24% GROWTH
  • JUST – EVOTEC BIOLOGICS IN BUILD-UP PHASE – INVESTMENT ON TRACK
  • ACQUISITION EXPANDS CAPABILITIES AND EXPERTISE IN CELL THERAPY
  • GUIDANCE FOR FULL-YEAR 2022 REFINED

 

Hamburg, Germany, 11 August 2022:
Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809) today announced its financial results for the first half-year of 2022.

 

HIGHLIGHTS

EVOTEC CONTINUES ITS STRONG ORGANIC REVENUE GROWTH IN ALL BUSINESS AREAS

  • Group revenues increased by 24% to € 336.9 m (H1 2021: € 271.3 m) driven by strong demand for its base business; like-for-like revenue growth (excluding fx-effects) 19%
  • Continued strong revenue growth momentum: Total EVT Execute revenues (incl. intersegment revenues) up 26% to € 351.0 m (H1 2021: € 279.5 m); EVT Innovate revenues due to a strong growth in Q2 up 36% to € 78.0 m (H1 2021: € 57.3 m)
  • Reported adjusted Group EBITDA totalled € 33.6 m (H1 2021: € 36.2 m); excellent Group gross margin increasing by 270 bps to 27.3% excluding Just – Evotec Biologics, which is in its build up phase; lower contribution from milestones, upfronts and licenses as well as continued expenses for capacity expansion; higher energy costs, higher costs along the supply chain and costs related to the acquisition of Rigenerand Srl; negative effects partially offset by positive fx-effects
  • Other non-operating result of € (89.8) m (H1 2021: € 106.1 m) explained by the non-cash fair value adjustments of the equity investment in publicly listed Exscientia plc.

 

NEW AND EXTENDED ALLIANCES REFLECT SUCCESS OF GROWTH STRATEGY

  • Significant operational and scientific step-up of targeted protein degradation alliance with Bristol Myers Squibb (“BMS”)
  • Several new integrated drug discovery collaborations signed, including INDiGO, CMC and DMPK agreements
  • New collaborations signed, based on unique, data-driven platforms with Almirall (dermatology), Boehringer Ingelheim (iPSC), Eli Lilly (E.MPD), Janssen (TargetAlloMod) and Sernova (iPSC)
  • Just – Evotec Biologics: Just –Evotec Biologics is currently in its initial build up phase. Strategic investments into disruptive technology platform show good progress – foundation laid for accelerated revenue growth; multiple new development and manufacturing agreements, e.g., among others with Alpine Immune Sciences (after period-end)
  • Co-owned pipeline projects progressing well, e.g. Phase II start of BAY 2395840 (diabetic neuropathic pain), expansion with JingXin for EVT201, submission for approval in China
  • Successful expansion of the EVOequity portfolio with new strategic equity stakes in several promising companies such as Centauri, IMIDomics, Sernova and Tubulis
  • Launch of Aurobac Therapeutics, a joint venture with Boehringer Ingelheim and bioMérieux, to create the next generation of antimicrobials along with actionable diagnostics to fight Antimicrobial Resistance (“AMR”)

 

CORPORATE

  • Effective May 2022, Dr Matthias Evers joins Management Board as Chief Business Officer (“CBO”), responsible for business development, digital technology and strategy
  • Signing of definitive agreement to acquire the cell technology company Rigenerand Srl, a leader in the field of cGMP manufacturing of cell therapies, which will operate as Evotec (Modena) Srl
  • Annual General Meeting 2022: Approval of all proposed agenda items; Camilla Macapili Languille elected to the Supervisory Board

BUSINESS OUTLOOK FOR FULL-YEAR 2022 REFINED AND MID-TERM TARGETS 2025 CONFIRMED

  • Group revenues now expected to be in a range of € 715 – 735 m versus € 700 – 720 m previously (unchanged at € 690 – 710 m at constant exchange rates) (2021: € 618 m)
  • Adjusted Group EBITDA expected to be unchanged in the range of € 105 – 120 m (new guidance range at constant exchange rates of € 85 – 100 m versus € 95 – 110 m previously) (2021: € 107 m)
  • Unpartnered research and development expenses expected to be in a range of € 70 – 80 m (2021: € 58 m)
  • Mid-term goals target revenue growth to more than € 1,000 m, adjusted EBITDA of at least € 300 m and unpartnered research and development expenses of more than € 100 m
     

The forecast takes in account – as far as possible – the current increased global uncertainties related to e.g. the COVID-19 pandemic and the war in Ukraine, resulting in uncertainty around the global price and supply situation for energy, other raw materials and supplies as well as logistics relevant to the business.

 

FINANCIAL HIGHLIGHTS

Key figures of unaudited consolidated income statement & segment information
Evotec SE & subsidiaries – First half-year 2022

 
 
In k€
 
EVT
Execute
 
EVT
Innovate
 

Intersegment Eliminations

Evotec Group
H1 2022
Evotec Group
H1 2021
Revenues1)  258,847 78,028   336,875   271,302
Intersegment revenues  92,142  (92,142)
Costs of revenue  (289,752)  (68,324) 84,391   (273,686)  (215,000)
Gross profit  61,237 9,704  (7,751) 63,189 56,302
Gross margin in % 17.4% 12.4% 18.8% 20.8%
           
R&D expenses2)  (2,561)  (42,028) 7,751  (36,838)   (35,434)
SG&A expenses  (54,139)  (13,258)  (67,396)   (46,383)
Impairment of intangible assets (683)
Other operating
income (expenses), net
 
15,573
 
22,165

 
37,738
34,513
Net operating income (loss) 20,110  (23,417)  (3,307)  8,315
           
Adjusted EBITDA3) 54,689 (21,053)    33,636  36,188

 1) Adjusted for exchange rate effects of € 15.2 m, Group revenues would have amounted to € 321.7 m
2)
Includes unpartnered R&D expenses of € 33.3 m in H1 2022 (H1 2021: € 27.8 m)
3)
Before changes in contingent consideration, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

More detailed information and financial tables are available in our half-year report published on the Evotec website under the following link:

https://www.evotec.com/en/investor-relations/publications

 
 

Webcast/Conference Call

The Company is going to hold a conference call to discuss the results as well as to provide an update on its performance. The conference call will be held in English.

Conference call details

Date:    Thursday, 11 August 2022
Time:    02.00 pm CEST (08.00 am EDT, 01.00 pm BST)

From Germany: +49 69 20 17 44 220
From France:    +33 170 709 502
From Italy:         +39 023 600 6663
From UK:          +44 20 3009 2470
From USA:        +1 877 423 0830
Access Code:   37893553#

A simultaneous slide presentation for participants dialling in via phone is available at https://www.webcast-eqs.com/evotec20220811/no-audio.

Webcast details

To join the audio webcast and to access the presentation slides you will find a link on our homepage www.evotec.com shortly before the event.

The on-demand version of the webcast will be available on our website: https://www.evotec.com/en/investor-relations/publications.

 

ABOUT EVOTEC SE
Evotec is a life science company with a unique business model that delivers on its mission to discover and develop highly effective therapeutics and make them available to the patients. The Company’s multimodality platform comprises a unique combination of innovative technologies, data and science for the discovery, development, and production of first-in-class and best-in-class pharmaceutical products. Evotec leverages this “Data-driven R&D Autobahn to Cures” for proprietary projects and within a network of partners including all Top 20 Pharma and over 800 biotechnology companies, academic institutions, as well as other healthcare stakeholders. Evotec has strategic activities in a broad range of currently underserved therapeutic areas, including e.g. neurology, oncology, as well as metabolic and infectious diseases. Within these areas of expertise, Evotec aims to create the world-leading co-owned pipeline for innovative therapeutics and has to-date established a portfolio of more than 200 proprietary and co-owned R&D projects from early discovery to clinical development. Evotec operates globally with more than 4,200 highly qualified people. The Company’s 16 sites offer highly synergistic technologies and services and operate as complementary clusters of excellence. For additional information please go to
www.evotec.com and follow us on Twitter @Evotec and LinkedIn.

FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements concerning future events, including the proposed offering and listing of Evotec’s securities. Words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “target,” “would” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding Evotec’s expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Evotec’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

IR Contact Evotec SE:
Volker Braun, SVP Head of Global Investor Relations & ESG, Phone: +49.(0)40.56081-775, volker.braun@evotec.com
 


11.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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