The United Laboratories International (3933) H2 2024 earnings summary

Executive summary

• Revenue reached RMB13,758.9 million in 2024, a 0.1% increase year-over-year, with profit attributable to owners at RMB2,659.7 million, down 1.5% year-over-year.

• Gross profit declined by 4.0% to RMB6,082.4 million, and EBITDA decreased by 0.9% to RMB3,939.4 million year-over-year.

• Dividend per share increased by 7.7% to RMB52.0 cents, with a payout ratio rising to 38.3%.

• R&D investment increased 21.9% to RMB985.5 million, with significant progress in innovative drug development, clinical trials, and a major licensing deal with Novo Nordisk for UBT251.

• Expansion into Big Health and animal healthcare segments, with new product launches and international market penetration.

Financial highlights

• Revenue: RMB13,758.9 million (+0.1% YoY); Gross profit: RMB6,082.4 million (-4.0% YoY).

• EBITDA: RMB3,939.4 million (-0.9% YoY); Net cash from operating activities: RMB3,199.3 million (+31.2% YoY).

• Profit attributable to owners: RMB2,659.7 million (-1.5% YoY); Basic EPS: 146.39 RMB cents (-1.5% YoY).

• Cash and cash equivalents increased to RMB6,329.8 million; net bank balances and cash stood at RMB2,139.7 million.

• Final dividend of RMB28 cents and special dividend of RMB12 cents per share proposed.

Outlook and guidance

• Focus on innovation-driven growth, expanding the new drug pipeline, and increasing R&D investment.

• Plans to deepen global strategic footprint, enhance vertical integration, and strengthen strategic partnerships.

• Financial strategy emphasizes robust cash flow, optimizing debt structure, and maximizing capital efficiency.

• Anticipates further growth in China’s pharmaceutical market due to demographic and policy trends.

• Continued investment in animal healthcare and new business segments.