KRAKOW, Poland, September 6, 2022 /PRNewswire/ — Selvita AG (WSE: SLV)one of the largest contract research organizations (CRO) Europe, published its preliminary financial results for the second quarter and the first half of 2022*. According to the first estimates published, the Group is continuing its growth dynamic, already exceeding the assumptions of the 2022-2025 development strategy presented in March.
- In Q2 2022, Selvita Group generated €22.4 million revenue, showing a 46% year-over-year increase. EBITDA profit amounted to 6.1 million euros and increased by 64% compared to the same period in 2021. Net profit reached 3.4 million euros – or 50% more than the previous year. This means an increase in both profitability at EBITDA level from 24.5% to 27.5% and net profit from 14.9% to 15.3% y/y.
- Over the whole of H1 2022, the Group achieved €42.9 million revenue, indicating a 40% y/y increase. EBITDA profit for this period reached €12.1 million and was 60% higher than the previous year. The net profit achieved 7.1 million euros (up 79% compared to H1 2021). Thus, EBITDA profitability increased in the reference period from 24.8% to 28.2%, and net profit increased from 12.9% to 16.5% y/y.
- The Group’s order book for the full year 2022 exceeds €77.3 million (like 2n/a September 2022) and is 32% higher than the value declared a year earlier (as at 16e September 2021).
– Since the beginning of 2022, we have been working very intensively to accelerate the development of Selvita. In the first quarter of 2022, we presented the updated development strategy for 2022-2025 and implemented changes in the corporate structure. After a few months, we can already see the first effects of the actions taken. The second quarter of this year was even better than the first, with our revenues growing 46% year-over-year during this period. For the first half of the year as a whole, our revenues reached 43 million euros. The level of order backlog for this year indicates that we can grow significantly beyond our assumptions. At the same time, we maintain high profitability. We also do not observe that the geopolitical situation or the turmoil in the global economy and supply chains has a negative effect on the implementation of our plans. – comments Bogusław Sieczkowski, co-founder, significant shareholder and CEO of Selvita.
In both Q2 and H1 2022, research services performed in Poland and Croatia represent 88% of the Group’s turnover. During the April-June period, the above-mentioned activities generated €19.3 million revenue, indicating a 43% y/y increase. Year-to-date through June, the value of revenue amounted to €37.0 million, or 38% more than in the corresponding period of the previous year. In the first half of 2022, the EBITDA result of research services carried out in Poland and Croatia achieved €11.3 millionwhich shows a year-on-year increase of 61%.
The bioinformatics segment, i.e. Ardigen, generated close to 4.6 million euros external revenues in H1 2022, indicating a 62% increase y/y (on 2.3 million euros at T2 alone, i.e. 63% more a/a). At the end of H1, the EBITDA of this part of the activity amounts to €0.8 million – 39% increase year over year. The bioinformatics backlog currently stands at 9.4 million eurosan increase of 56% compared to the same period a year earlier.
Such a significant increase in Selvita’s financial results is, among other things, the result of the internal integration of the drug discovery field executed as part of the organizational structure changes and increased focus on high-margin services. .
– We are already seeing the first effects of the consolidation of the two companies under the Selvita brand. We maximize synergies, develop high value-added services and penetrate new areas of research. At the same time, we are looking for niches in which we could stand out from our competitors. All this has a positive effect on the efficiency of our company. We are convinced that this will also be seen in our future results. – explains Dr. Adriana VinterGlobal Head of Drug Discovery and Board Member of Selvita.
Other changes to the organizational structure aimed to prepare the Group for further dynamic growth and involved the integration of business development teams.
– After the merger with Fidelta, we worked to create the clearest and most coherent offer. Along with the integration of the Croatian company under the Selvita brand, we have introduced many changes and improvements in our business development structures. The growth momentum recorded is the result, among other things, of these activities. We maximize our potential and strengthen our market position – says Dr. Miłosz Gruca, Commercial Director and Vice Chairman of the Board of Selvita.
In order to provide the infrastructure resources necessary for its continued organic growth, Selvita is building its own laboratories in Krakowcreating workstations for 250 scientists.
– We are undertaking many activities to secure ourselves a place for future organic growth. The key project implemented in this area is the construction of our own research building, the completion of which is scheduled for the first quarter of 2023. At the beginning of the year, Selvita also purchased a second adjacent building plot. Accordingly, depending on our needs, four research facilities can be built, creating more than 1000 workstations. At the same time, we are constantly looking to expand our infrastructure in Poznan and Zagreb – explains Dr. Mirosława Zydroń, Managing Director and Member of the Board of Selvita.
Implementation of the 2022-2025 development strategy
At the end of the first quarter of 2022, Selvita, having achieved the strategic objectives set for the end of 2023 a year ahead of schedule, announced an updated development strategy for 2022-2025. During this period, the company plans to triple its turnover (up to 200 million euros), while maintaining high profitability. The company will implement its strategy through organic growth and acquisitions. The implementation of the planned investments aims to enable Selvita to become the world‘s leading preclinical CRO.
The Selvita group’s development strategy for 2022-2025 is based on three key pillars:
- Comprehensive drug discovery and development offering – complementing the drug discovery offering and strengthening the drug development segment
- Emphasis on high added value services for the client – specialization in selected therapeutic areas and development of unique skills
- Development of the Group’s operations in the largest markets in United States and Britain – increase in teams and potentially new locations for laboratories
In the area of acquisitions, in 2022-2025, Selvita intends to acquire at least two preclinical CROs in Europe Where North Americaproviding complementary services to the Company’s offer or enabling the scale of its activities to be expanded, allocating a total of 110 million euros for this purpose.
– The results we obtained in the first half of 2022 mean that at this stage organic growth is higher than our assumptions. At the same time, we have prepared our structure for new acquisitions and are in ongoing discussions with potential acquisition targets. I am convinced that in this area too we will be able to implement our development plans – adds Bogusław Sieczkowski.
*Results do not include the accounting costs of the employee incentive program. The consolidated half-year report for H1 2022 will be published on September 14, 2022.
**percentage changes calculated on amounts in original reporting currency i.e. PLN
About Selvita [SLV]
Selvita is one of the largest preclinical contract research organizations in Europedriven by a clear mission: to offer a full range of services bridging the gap between early drug discovery and the clinical stage of drug development.
Selvita provides end-to-end solutions supporting customers and their drug discovery projects, across a wide range of therapeutic areas, specializing in infectious diseases, inflammation, fibrosis and oncology. The Company offers a range of stand-alone or fully integrated drug discovery and development solutions covering the entire value chain, from early drug discovery to preclinical development. In addition to this, Selvita also offers analytical support for drug development and contract test studies.
Selvita, established in 2007, operates worldwide with more than 1,000 highly qualified employees, over 36% of whom hold PhDs. The Company’s research sites are located in Krakow (headquarters), Poznan, Polandand Zagreb, Croatia. International offices are located at Cambridge, MAand San Francisco Bay Area, in the United States, as well as in Cambridge, in the United Kingdom. Ardigen, a bioinformatics company exploiting advanced methods of artificial intelligence for new precision medicine, is part of the portfolio of companies of the Selvita group.
Selvita is listed on the Warsaw Stock Exchange (WSE: SLV).
For more information, please visit www.selvita.com.