ChemoMetec (CHEMM) Q3 2020 earnings summary

Executive summary

• Revenue in Q3 2019/20 reached DKK 57.6 million, up 26% year-over-year, driven by strong growth in North America and cell-based immunotherapy markets.

• EBITDA increased by 59% to DKK 28.2 million, with an EBITDA margin of 49%, reflecting both higher sales and strict cost control.

• Sales of analysis instruments rose 24%, consumables 26%, and service agreements contributed DKK 1.8 million in recognized revenue.

• More than half of total revenue now comes from North America, which saw a 56% increase in sales.

• COVID-19 led to operational adjustments, but production and logistics remained near normal, with all non-postponed orders delivered on time.

Financial highlights

• Q3 revenue: DKK 57.6 million (up 26% YoY); first nine months: DKK 161.2 million (up 26% YoY).

• Q3 EBITDA: DKK 28.2 million (up 59% YoY); first nine months EBITDA: DKK 71.9 million (up 44% YoY).

• Life science research, cell-based immunotherapy, and pharmaceutical process control (LCF) segment revenue grew 30% in Q3.

• Instrument sales in Q3: DKK 31.6 million; consumables: DKK 22.3 million; service: DKK 1.8 million.

Outlook and guidance

• Full-year 2019/20 revenue expected in the range of DKK 205–213 million; EBITDA expected at DKK 82–90 million.

• Guidance maintained despite increased uncertainty from COVID-19, following an upward revision on April 28, 2020.