ChemoMetec (CHEMM) Q4 2024 earnings summary

Executive summary

• Revenue declined by 8% to DKK 407.4 million in 2023/24, with EBITDA down 26% to DKK 186.2 million, mainly due to a 35% drop in instrument sales, while consumables and services grew 13%.

• Challenging market conditions, especially in cell and gene therapy, led to reduced investment and sales, but signs of stabilization and improved capital availability emerged late in the year.

• Four new instruments (XM30, XM40, NC-203, Xcyto 5) are being launched to strengthen the product portfolio and target automation trends in bioprocessing and cell/gene therapy.

• Organizational changes included new executive management and a focus on commercial initiatives to support future growth.

Financial highlights

• Revenue: DKK 407.4 million, down 8% year-over-year; EBITDA: DKK 186.2 million, down 26%.

• EBITDA margin: 45.7% (down from 56.8%); EBIT margin: 41.5% (down from 52.1%).

• Net income: DKK 136.3 million, down from DKK 178.7 million; EPS: DKK 7.8, down 24%.

• Cash flow from operations: DKK 129.0 million; equity ratio: 84%.

• Dividend proposed: DKK 4.0 per share (DKK 69.6 million total).

Outlook and guidance

• 2024/25 revenue guidance: DKK 435–450 million (7–10% growth); EBITDA: DKK 216–223 million (16–20% growth).

• Growth assumptions include improved capital access for cell/gene therapy customers and successful launches of new instruments.

• Continued focus on automation, product development, and expanding service offerings.