ADL Bionatur Solutions (ADL-BS) reported robust Q119 growth, with revenue of €9.97m (up 134% year-on-year), driven largely by increased capacity utilisation at its contract manufacturing (CMO) business. CMO revenues were €8.02m (up 180% vs Q118), whereas the active pharmaceutical ingredient (API) segment was down 14% yearly to €0.90m, due in part to seasonality for β-lactam antibiotics. Other revenue, which includes proprietary products and other contracted services and income, was up 205% to €1.05m. The strong CMO growth drove a swing to positive €0.11m EBITDA, marking the second consecutive quarter of positive EBITDA. ADL-BS continues to expect positive overall EBITDA for 2019.
ADL Bionatur Solutions |
Solid Q119 growth |
Q119 trading update |
Pharma & biotech |
9 May 2019 |
Share price performance Business description
Analysts
ADL Bionatur Solutions is a research client of Edison Investment Research Limited |
ADL Bionatur Solutions (ADL-BS) reported robust Q119 growth, with revenue of €9.97m (up 134% year-on-year), driven largely by increased capacity utilisation at its contract manufacturing (CMO) business. CMO revenues were €8.02m (up 180% vs Q118), whereas the active pharmaceutical ingredient (API) segment was down 14% yearly to €0.90m, due in part to seasonality for β-lactam antibiotics. Other revenue, which includes proprietary products and other contracted services and income, was up 205% to €1.05m. The strong CMO growth drove a swing to positive €0.11m EBITDA, marking the second consecutive quarter of positive EBITDA. ADL-BS continues to expect positive overall EBITDA for 2019.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/17 |
14.6 |
(13.7) |
(0.64) |
0.0 |
N/A |
N/A |
12/18 |
23.3 |
(13.3) |
(0.35) |
0.0 |
N/A |
N/A |
12/19e |
64.8 |
1.2 |
0.03 |
0.0 |
78.3 |
N/A |
12/20e |
75.5 |
5.0 |
0.13 |
0.0 |
18.1 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments.
ADL-BS also provided 2019 revenue guidance of between €50m and €55m, which, while below our current 2019 estimate (€64.8m), still represents a more than doubling of 2018 sales. As in Q119, the bulk of ADL-BS revenue growth for the year is expected to be driven by increased utilisation at the firm’s CMO business. The company expects contractually committed capacity at its eight 225m3 fermenters to rise from c 85% currently to 100% by YE19. The bulk of the firm’s committed CMO contracts, such as its six-year €146m flucosil-lactose deal and the multi-year arrangement with Amyris, are long-term, multi-year (or renewable) commitments, which should enhance long-term revenue visibility and form a base for potential future expansion in CMO capacity. The company also aims to target higher-margin, more differentiated or complex fermentation products within its CMO operations, as well as further develop its line of proprietary and potentially innovative products.
Disclaimer
|
Disclaimer
|
Research: Metals & Mining
Lepidico (LPD) has, this week, announced a trio of transformative initiatives. The first of these is an all-share offer to acquire Desert Lion (TSXV: DLI), according to which LPD will pay 5.4 shares for every one Desert Lion share. The second is a supply and marketing alliance with Gulf Fluor for the supply of sulphuric acid, including the provision of land for the construction and operation of Lepidico’s Phase 1 Plant project in Abu Dhabi. The third is a one for nine renounceable rights issue involving the issue of up to 372.9m new shares in Lepidico at A$0.029/share to raise A$10.8m.
Get access to the very latest content matched to your personal investment style.