On April 29, 2019 WuXi AppTec Co., Ltd. (stock code: 603259.SH / 02359.HK), a leading global pharmaceutical and medical device open-access capability and technology platform company with global operations, reported its financial results for first quarter 2019 (Press release, WuXi AppTec, APR 29, 2019, View Source [SID1234535445]).
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All financials disclosed in this press release are prepared in accordance with International Financial Reporting Standards (or "IFRS").
The 2019 First Quarterly Report of the Company has not been audited.
Financial Highlights
Strong revenue growth of 29.3% year-over-year to RMB2,769 million.
Gross profit grew 27.2% year-over-year to RMB1,055 million. Gross profit margin was 38.1%.[2]
Net profit attributable to owners of the Company increased 33.0% year-over-year to RMB386 million.
Adjusted non-IFRS net profit attributable to owners of the Company grew 28.3% year-over-year to RMB519 million.
Diluted EPS and adjusted non-IFRS EPS increased by 6.5% and 4.7%, respectively.[3]
Management Comment
"We are off to a solid start in 2019 with strong growth momentum," said Dr. Ge Li, Chairman and CEO of WuXi AppTec. "Our strong revenue growth was broad-based across all business segments, especially our clinical research and other CRO services. While achieving good revenue growth, we continuously invested in new capabilities and capacities, including talent, laboratories, manufacturing facilities and technologies."
"In the first quarter of 2019, our subsidiary WuXi STA’s new drug product manufacturing facility in Shanghai, since its inception at the end of 2018, has passed its first GMP inspection by the European Medical Products Agency (MPA). In addition, three of our Laboratory Testing Division’s facilities, Drug Safety Testing, Bioanalytical Services and Medical Device Testing, completed regulatory inspections by the US FDA (Food and Drug Administration), OECD (Organization for Economic Co-operation and Development), and CNAS (China National Accreditation Service for Conformity Assessment), all with excellent results. Moreover, our newly built Qidong research and development center began operation, and will become an extension of our Shanghai headquarter in the future."
"We believe these investments will build on our solid foundation sustaining our growth. At WuXi AppTec, we will continue to relentlessly enhance our platform with the most comprehensive and cutting-edge technologies so we can fulfill our dream that ‘every drug can be made and every disease can be treated’." Dr. Li concluded.
First-Quarter 2019 Results
First-quarter 2019 revenue increased 29.3% year-over-year to RMB2,769 million. We experienced strong revenue growth across all business segments, especially for our clinical research and other CRO services.
First-quarter 2019 gross profit increased 27.2% year-over-year to RMB1,055 million. Gross profit margin was 38.1%, slightly lower than 38.7% in first-quarter 2018[4] primarily given we continued to enhance capabilities and build capacity. We also paid more incentives, including share-based compensation, to our employees, to sustain talent.
First-quarter 2019 net profit attributable to owners of the Company increased 33.0% year-over-year to RMB386 million. We experienced significant synergies across business segments and increased customer conversion rate by fully leveraging the strength of our "integrated end-to-end" R&D services platform.
First-Quarter 2019 Non-IFRS Results
First-quarter 2019 non-IFRS net profit attributable to owners of the Company increased 32.0% year-over-year to RMB523 million. This adjusts for RMB32 million share-based payments, RMB99 million foreign exchange-related effects and RMB5 million amortization of intangible assets acquired.
First-Quarter 2019 Adjusted Non-IFRS Results
Excluding a further RMB10 million realized and unrealized gains from our venture investments and RMB6 million losses from our joint ventures, first-quarter 2019 adjusted non-IFRS net profit attributable to owners of the Company increased 28.3% year-over-year to RMB519 million.