Full Press Release Details
DISCOVERY & PRECLINICAL
DEVELOPMENT SOFT; STRONG GROWTH IN JUST -EVOTEC BIOLOGICS
PROGRESSING IN KEY STRATEGIC AREAS
EVENTS AFTER PERIOD-END
ADJUSTED GUIDANCE FOR FULL-YEAR 2025 CONFIRMED
FINANCIAL HIGHLIGHTS
The following table provides an overview of the financial performance
in the first six months 2025 compared to the same period in 2024. More detailed information can be found in the notes section of this
Key figures of consolidated income statement & segment
Evotec SE & subsidiaries - First six months of 2025
| Six months ended June 30, 2025 | ||||||||||||||||
| in k | Discovery and Preclinical Development 1 | Just - Evotec Biologics | Intersegment eliminations | Evotec Group | ||||||||||||
| Revenues 2 | 268,969 | 102,244 | - | 371,213 | ||||||||||||
| Intersegment revenues | 29 | 23 | (52 | ) | - | |||||||||||
| Costs of revenue | (242,509 | ) | (92,937 | ) | 52 | (335,393 | ) | |||||||||
| Gross profit | 26,490 | 9,330 | - | 35,820 | ||||||||||||
| Gross margin % | 10 | % | 9 | % | - | % | 10 | % | ||||||||
| Research and development cost | (18,907 | ) | (62 | ) | - | (18,969 | ) | |||||||||
| Selling, general and administrative cost | (73,676 | ) | (15,631 | ) | - | (89,308 | ) | |||||||||
| Other operating income | 27,885 | 1,756 | - | 29,642 | ||||||||||||
| Other operating expenses | (5,066 | ) | (535 | ) | - | (5,601 | ) | |||||||||
| Reorganization costs | 634 | - | - | 634 | ||||||||||||
| Operating Loss | (42,641 | ) | (5,141 | ) | - | (47,782 | ) | |||||||||
| Adjusted EBITDA 3 | (9,329 | ) | 7,478 | - | (1,850 | ) |
| Six months ended June 30, 2024 | ||||||||||||||||
| in k | Discovery and Preclinical Development 1 | Just - Evotec Biologics | Intersegment eliminations | Evotec Group | ||||||||||||
| Revenues 2 | 302,379 | 88,471 | - | 390,850 | ||||||||||||
| Intersegment revenues | - | 453 | (453 | ) | - | |||||||||||
| Costs of revenue | (259,536 | ) | (81,017 | ) | 204 | (340,348 | ) | |||||||||
| Gross profit | 42,843 | 7,907 | (249 | ) | 50,501 | |||||||||||
| Gross margin % | 14 | % | 9 | % | - | % | 13 | % | ||||||||
| Research and development expenses | (29,348 | ) | (154 | ) | 249 | (29,253 | ) | |||||||||
| Selling, general and administrative expenses | (74,859 | ) | (17,046 | ) | - | (91,905 | ) | |||||||||
| Other operating income | 23,127 | 1,106 | - | 24,233 | ||||||||||||
| Other operating expenses | (7,933 | ) | - | - | (7,933 | ) | ||||||||||
| Reorganization costs | (67,447 | ) | (1,009 | ) | - | (68,456 | ) | |||||||||
| Operating Loss | (113,617 | ) | (9,196 | ) | - | (122,813 | ) | |||||||||
| Adjusted EBITDA 3 | (3,767 | ) | 3,300 | - | (467 | ) |
1) In Q2 2025, the Management Board made the decision to rename
the segment previously known as "Shared R&D" to "Discovery and Preclinical Development" (D&PD) to better
reflect Evotec's strategic focus.
2) Group revenues would have amounted to 372.9 m at constant
3) Net income (loss) adjusted for interest, taxes, depreciation
and amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating results, change
in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the presentation of the financial
performance of the Group.
REPORT ON THE FINANCIAL SITUATION AND RESULTS
1. Results of operations
During the six months ended June 30, 2025
Group revenues decreased by (5.0)% to 371.2 m compared to the same period of the previous year (6M 2024: 390.8 m).
The variance was driven by lower revenues within Discovery and Preclinical Development with (11.0)% compared to the equivalent prior
year period, while revenues within Just - Evotec Biologics increased by 15.6%. Excluding fx-effects, Group revenues decreased by
(5.0)% to 372.9 m. Base business decreased by (6.9)% from 390.7 m in 6M 2024 to 363.6 m in the
six months ended June 30, 2025.
The Costs of revenue for the six months
ended June 30, 2025 amounted to 335.4 m (6M 2024: 340.3 m) yielding a gross margin of 9.6% (6M 2024: 12.9%).
The main driver of the overall decrease in the costs of revenue lies in lower labor and material costs predominantly on the Discovery
and Preclinical Development side.
R&D expenses decreased to 19.0
m, compared to 29.3 m in the six months ended June 30, 2024 ((35.2)%), with a focused capital allocation to selected
SG&A expenses for the six months ended
June 30, 2025 amounted to 89.3 m and were thus 2.6 m or (2.8)% lower compared to last year (6M 2024: 91.9 m)
driven by a decrease in external consultancy spend.
For the six months ended June 30, 2025,
other operating income amounted to 29.6 m, compared to 24.2 m for the comparable prior year period. The increase
was driven by an insurance reimbursement related to the cyber-attack. Key drivers for the decrease of other operating expenses from
7.9 m in the first six months 2024 to 5.6 m in the first six months 2025 were reduced expenses related to the cyber-attack.
For the six months ended June 30, 2025 Reorganization
costs amounted to a reversal of 0.6 m (6M 2024: expenses of 68.5 m) related to the finalization of reorganization
projects performed in the prior year.
The net income (loss) as of June 30,
2025 totalled (75.1) m (6M 2024: (115.6) m). The improvement compared with 6M 2024 was mainly driven by the non-recurring
reorganization costs in the prior year. This was partially offset by lower revenues, higher tax expense and higher expenses for non-operating
items, including fx impacts.
Adjusted Group EBITDA for the six months
ended June 30, 2025 represented (1.9) m (6M 2024: (0.5) m) mainly driven by lower revenues, partially offset
by lower Costs of revenue as well as reduced R&D and SG&A expenses.
2. Results in our reportable segments Discovery
and Preclinical Development and Just - Evotec Biologics
In the Discovery and Preclinical Development
segment, revenues (incl. intersegment revenues) decreased by (11.0)% to 269.0 m (6M 2024: 302.4 m) mainly driven
by weaker than anticipated demand, as the company continues to navigate a suppressed market.
Costs of revenue within Discovery and
Preclinical Development were at 242.5 m in the six months ended June 30, 2025 (6M 2024: 259.5 m), corresponding
to a gross margin of 9.8% (6M 2024: 14.2%). The decrease in the gross margin was mainly driven by a lower top-line performance.
R&D expenses decreased to 18.9
m (6M 2024: 29.3 m), with a focused capital allocation approach to specific R&D projects. SG&A expenses
decreased to 73.7 m (6M 2024: 74.9 m), primarily due to lower third party operating expenses. For the six months
ended June 30, 2025, other operating income amounted to 27.9 m, compared to 23.1 m for the comparable prior year
period, driven by an insurance reimbursement related to the cyber-attack. Other operating expenses were 5.1 m (6M 2024:
7.9 m) mainly driven by lower expenses related to the cyber-attack driven ongoing IT expenses.
EBITDA of the Discovery and Preclinical Development segment was (9.3) m (6M 2024: (3.8) m), driven by the reduced top-line
Revenues within Just
- Evotec Biologics increased to 102.2 m (6M 2024: 88.5 m). This growth of 15.6% was driven by increased
revenues in the existing customer base.
Costs of revenues of 92.9 m were
incurred in the first six months 2025 with higher labor and service and supplier costs to cover the increased base business in the US
and the continuous ramp-up in France, compared to 81.0 m within the six months ended June 30, 2024. Gross margin slightly
increased to 9.1% from 8.9% in the first six months 2024, driven by increased favorability in revenue mix.
The decrease in SG&A expenses (6M
2025: 15.6 m vs. 6M 2024: 17.0 m) is driven by lower IT related Group charges. Other Operating Expense remained
constant year over year.
The adjusted EBITDA within Just
- Evotec Biologics has increased to 7.5 m (6M 2024: 3.3 m), due primarily to the increased favorability in
3. Financing and financial position
Net cash used in operating activities
in the first six months ended June 30, 2025 was (5.3) m compared with (98.6) m in the first six months 2024. This
year's figure is positively affected by a lower net loss and favorable changes in working capital.
Net cash used in investing activities for
the six months ended June 30, 2025 amounted to (43.6) m (6M 2024: (62.2) m). Capital expenditure decreased to
(37.6) m (6M 2024: (75.5) m) as the expansion investments in Just - Evotec Biologics site in Toulouse have approached completion
in 2025, resulting in significantly lower cash outflows. The proceeds from current investments (net) also decreased to 9.6 m (6M
2024: 17.1 m) and originated from the (net) sale of coupon bonds and money market funds.
Net cash provided by/used in financing activities
was 20.7 m in the six months ended June 30, 2025 (6M 2024: (124.9) m) which mainly results from the draw
down of loans, partially offset by the repayment of lease obligations amounting to (19.3) m while the six months ended June 30,
2024 were affected by loan repayments of (110.3) m.
Cash and cash equivalents amounted to
267.8 m as of June 30, 2025 (December 31, 2024: 306.4 m ).
Total Liquidity decreased to 348.0
m (December 31, 2024: 396.8 m).
4. Assets, liabilities, and stockholders'
Between December 31, 2024 and June 30,
2025, total assets decreased by (104.2) m to 1,808.3 m (December 31, 2024: 1,912.5 m).
Investments amounted to 80.2 m
(December 31, 2024: 90.4 m). This decrease was due to the net sale of coupon bonds.