Genscript Biotech (1548) H2 2024 earnings summary

Executive summary

• Group revenue from continuing operations grew 6.1% year-over-year to $594.5 million in 2024, driven by commercial expansion, new product offerings, and strong performance in core segments.

• Net profit reached $2.9 billion, reversing a prior year loss, mainly due to a $3.2 billion one-time gain from the deconsolidation of the cell therapy business (Legend).

• Adjusted net profit from continuing operations was $59.8 million, reflecting rapid profit growth.

• Core segments delivered double-digit operating profit growth, with Bestzyme achieving fast revenue growth and improved gross margins.

• The company now holds Legend as an associate, with a carrying value of $3.7 billion, representing 69.2% of total assets.

Financial highlights

• Life Science Group revenue grew 10.2% to $454.9 million, with adjusted operating profit up 15.5% to $90.4 million.

• ProBio revenue declined 13.2% to $95 million, with an adjusted EBITDA loss of $14.6 million, but new orders showed signs of recovery.

• Bestzyme revenue increased 24.6% to $53.7 million, with adjusted operating profit up 26.8% and gross margin improvement.

• Group cash position stood at $737.8 million at year-end.

• Basic earnings per share for the year were 139.63 US cents, compared to a loss of 4.53 US cents last year.

Outlook and guidance

• Life Science business targets 10%-15% revenue growth in 2025, with gross margin above 50%.

• ProBio expects 15%-20% revenue growth in 2025 (excluding LaNova), with LaNova upfront payment recognized as revenue.

• Bestzyme targets 20%-25% revenue growth and ~45% gross margin in 2025.

• Plans to expand manufacturing in the US, Singapore, and China, and enhance GMP-grade capacity for life-science services.

• CapEx for 2025 expected to be flat versus 2024, with increased investment in Bestzyme and ex-China manufacturing.