Half Year 2025 Evotec SE Earnings Call Transcript
Key Points
- Evotec SE (EVOTF) has unveiled a new strategy focusing on pioneering drug discovery and development, aiming for sustainable, profitable growth.
- The Just Evotec Biologics segment continues to show strong growth, with a 16% revenue increase year-over-year, driven by high demand and strong results.
- The company is ahead of plan in achieving cost-saving targets, with over EUR60 million in cost reductions planned for 2025.
- Evotec SE (EVOTF) is expanding its molecular patient database, enhancing its competitive position in drug discovery.
- The planned sale of the Toulouse site to Sandoz is expected to improve revenue mix, profit margins, and capital efficiency, aligning with the company's strategy to adopt a more asset-light model.
- The discovery and preclinical development segment experienced an 11% revenue decline, partly due to a temporary effect in the BMS collaboration and continued softness in the early drug discovery market.
- There has been a higher occurrence of negative change orders, primarily due to scientific reasons, impacting revenue volatility.
- The biotech funding landscape remains complex, with early-stage investments lagging behind later-stage funding, affecting the company's customer base focused on discovery and pre-clinical research.
- Group revenues decreased by 5% compared to the first half of 2024, impacted by a decline in the E.MPD segment.
- Adjusted Group EBITDA was negative EUR1.9 million, reflecting lower operational leverage from soft revenues in the E.MPD segment.
Ladies and gentlemen, welcome to the Evotec SA Half year Report 2025 conference call. I am Matilda, the chorus call operator. (Operator Instructions)
The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Volker Broun, Head of IR and ESG. Please go ahead.
Thank you, Matilda, and good morning, good afternoon to everyone in the call. Thank you for joining us today. Today, we will cover our first half, 2025 results, and we will discuss the progress we have made in the execution of our strategy, as well as the key operational and external developments.
We will, of course, also provide an update on the evolution of the just it will take biologics business of which the plants and those deal is part of. However, because of the running process, we will not dwell in the details as such. We appreciate your understanding.
Before we start, the usual thirty seconds on housekeeping items. On page 2, we
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