Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ChemoMetec AS (OCSE:CHEMM, Financial) reported financial results in line with expectations, maintaining guidance for the full fiscal year.
- The company is set to launch four new instruments by the end of the calendar year, which are expected to unlock significant opportunities in the bioprocessing market.
- Sales from services grew by double digits, indicating strong demand in this segment.
- The company has established a new executive leadership team to focus on growth and strategic priorities.
- ChemoMetec AS (OCSE:CHEMM) has implemented a code of conduct and conducted an employee engagement survey with positive results, reflecting a commitment to ESG initiatives.
Negative Points
- Revenue for the first half of the fiscal year declined by 17% compared to the previous year, with a significant drop in instrument sales.
- The EBITDA margin decreased from 60% to 47% due to lower revenue and increased costs.
- The company faces a challenging funding environment in the cell and gene therapy market, with a minor decrease in global funding.
- Despite new product launches, the market for cell and gene therapy remains subdued, impacting overall growth prospects.
- ChemoMetec AS (OCSE:CHEMM) has not historically implemented price hikes, but recent increases may affect customer demand.
Q & A Highlights
Q: How do you view the current market environment, and are you optimistic about the future?
A: Rasmus Kofoed, CEO, stated that they are cautiously optimistic. While there are signs of increased funding in the biotech industry compared to 2022, the cell and gene therapy market remains at a lower funding level. However, feedback from customers suggests that the market may have reached its bottom, and there is hope for improvement.
Q: Can you provide an update on the sales funnel for the XytoMatic 40 and your confidence in meeting sales guidance?
A: Rasmus Kofoed, CEO, mentioned that they have sold the first instruments and completed over 20 trials with key customers. They are optimistic about the sales funnel, with several hundred active leads, and expect to achieve sales in the low double-digit million DKK range for the fiscal year.
Q: What drove the strong performance in Europe, and was there any impact from price increases?
A: Niels Høy Nielsen, CFO, explained that the strong performance in Europe was due to good trends in the French and Scandinavian markets. While customers were aware of price increases, it did not significantly impact sales, and there was no major stocking pattern observed.
Q: How do you expect the XM 40 launch to impact margins and consumables sales?
A: Rasmus Kofoed, CEO, stated that the XM 40 is expected to maintain current business model margins. While it is a high-throughput instrument, the cost per test may be lower, but overall consumables sales are expected to remain similar to current levels.
Q: Have you received any pushback from customers regarding the recent price increases?
A: Rasmus Kofoed, CEO, noted that they have not received negative feedback from customers regarding the price increases. Customers were informed in advance, and the feedback has been generally positive, with no significant loss of sales volume expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
