Biotest (BIO3) Q4 2024 earnings summary

Executive summary

• Announced delisting agreement with Grifols S.A., which holds nearly all voting rights; public delisting tender offer at €43 per ordinary share and €30 per preference share, exceeding statutory minimums.

• Delisting aims to enable long-term strategic focus, R&D investment, and cost reduction, with Grifols providing future financing as capital markets are no longer viable.

• Delisting process expected to start in May, with acceptance period of four weeks and settlement by June 2025.

• 2024 saw successful FDA approval and US launch of Yimmugo®, strategic partnership with Kedrion Biopharma, and positive regulatory progress for Fibrinogen and Albumin.

• Sales grew 6.1% to €726.2 million, with core sales increasing and technology transfer activities declining.

Financial highlights

• Sales increased 6.1% year-over-year to €726.2 million; Q4 had record monthly sales.

• EBIT reached €94.5 million, at the upper end of guidance, but down from €143.5 million in 2023 due to lower technology transfer revenue and higher costs.

• Adjusted EBIT rose sharply from €10 million in 2023 to €64.5 million in 2024, excluding Biotest Next Level costs and one-time items.

• Earnings after tax dropped from €127 million to €26.4 million; EPS for ordinary shares at €0.66.

• Cash flow from operating activities improved to €60.9 million, reversing a negative figure in 2023; net debt at year-end was €535.1 million.

Outlook and guidance

• 2025 revenue expected to decline mid-single digits due to lower technology transfer and development service income, despite €40 million growth in core product sales.

• EBIT guidance for 2025 is a loss of €55–75 million, driven by higher R&D expenses, price declines, and BNL ramp-up costs.

• Break-even expected from 2027, not in 2025 or 2026.

• Cash flow from operating activities expected to be negative in 2025 due to working capital needs, with operating cash flow before working capital changes at €90.1 million.

• ROCE expected in the range of 3% to 7% for 2025; focus remains on innovation, US market entry, and production ramp-up.