On March 20, 2023 Abcam plc (Nasdaq: ABCM) (‘Abcam’, the ‘Group’ or the ‘Company’), a global leader in the supply of life science research tools, reported its results for the year ended 31 December 2022 (the ‘period’) (Press release, Abcam, MAR 20, 2023, View Source;final-results-for-the-year-ended-31-december-2022-301775644.html [SID1234629067]).
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SUMMARY PERFORMANCE
Year-End 31 December
2022
£m
2021
£m
Revenue
361.7
315.4
Gross profit margin, %
Adjusted gross profit margin, %
74.8%
75.5%
71.2%
72.2%
Operating profit margin, %
Adjusted operating profit margin, %
Diluted (loss) / earnings per share (‘EPS’) (£)
(2.8%)
21.1%
(0.037)
2.3%
19.2%
0.019
Adjusted diluted earnings per share (‘EPS’) (£)
0.249
0.206
Return on Capital Employed (‘ROCE’), %
8.9 %
7.6 %
FULL YEAR FINANCIAL HIGHLIGHTS[1]
Reported revenue growth of 15%; constant exchange rate (‘CER’) revenue growth of 8%
– In-house revenues, including BioVision and Custom, Products & Licensing, recorded 26% reported revenue growth and 18% CER revenue growth
Reported gross profit margin of 74.8%: Adjusted gross profit margin of 75.5%, an increase of 330 basis points from 72.2%, driven by the contribution of in-house revenues, including BioVision and Custom, Products & Licensing
Operating loss of £10.1 million impacted by £18.3 million impairment charge on asset held for sale; adjusted operating profit increased 26% to £76.3m, resulting in a 190 basis points increase of adjusted operating profit margin to 21.1%
Diluted loss per share of (£0.037) impacted by impairment charge on asset held for sale; adjusted diluted earnings per share increased 21% to £0.249
Return on capital employed increased to 8.9%, a 130-basis point improvement, favourably impacted by efficient capital utilization and higher adjusted operating profits
[1] These results include discussion of alternative performance measures which include revenues calculated at Constant Exchange Rates (CER) and adjusted financial measures. CER results are calculated by applying prior period’s actual exchange rates to this period’s results. Adjusted financial measures are reconciled to the most directly comparable measure prepared in accordance with IFRS in note 3 to the financial statements.
BUSINESS HIGHLIGHTS
In-house revenues, including BioVision and Custom, Products & Licensing, represent 67% of total sales, an increase of 600 basis points
– Academic & Biopharmaceutical customers experienced double-digit percent reported revenue growth, Academic grew mid-single digits and Biopharmaceutical grew double-digit percent on a CER basis
Partnering with biopharma, diagnostic and multiplex platform partners continued to generate current and future sources of growth with the number of commercialized antibodies with these partners rising to a total of more than 2,100
To support future growth, we’ve implemented an Oracle Cloud ERP system, and expanded sites in Waltham, Singapore, and Amsterdam
Expanded Life Science Industry experience within the Board of Directors with the appointment of Luba Greenwood, as Non-Executive Director
Cancellation of admission to trading on AIM completed and sole Nasdaq listing as of 14 December 2022
FY23 OUTLOOK
The Company anticipates reported revenues of approximately £420 million to £440 million, representing 15% to 20% constant exchange rate revenue growth, combined with lower operating expense growth, resulting in adjusted operating profit margin expansion.
FY2024 GOAL
The Company is reiterating its 2024 revenue goals of £450m-£525m with adjusted operating profit margins of greater than 30%.
Commenting on the performance, Alan Hirzel, Abcam’s Chief Executive Officer, said:
"Our team is dedicated to supporting life science discovery, and the translation of discovery to social impact. In the last ten years, our business has grown revenue at double digit rates because of the trust the market has in our team, our innovation, and our brand. As we look ahead, we can be confident that we have and continue to build a sustainable and profitable growth company. I am grateful to everyone at Abcam for their ongoing efforts through this exciting period. I also thank our customers and partners bringing Abcam into their labs and giving us all the opportunity to demonstrate our company’s role in making progress happen together."
Analyst and investor meeting and webcast:
Abcam will host a conference call and webcast for analysts and investors today at 12:00 GMT/ 08:00 EDT. For details, and to register, please visit corporate.abcam.com/investors/reports-presentations
A recording of the webcast will be made available on Abcam’s website, corporate.abcam.com/investors
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For further information please contact:
Abcam
+ 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Michael Baldock, Chief Financial Officer
Tommy Thomas, Vice President, Investor Relations