Selvita's Financial Growth and Strategic Outlook for 2025
Selvita's Financial Growth and Outlook for 2025
Selvita S.A. (WSE: SLV), recognized as one of Europe's foremost preclinical contract research organizations (CROs), has recently unveiled its financial results for 2024. This presentation also includes insights about their robust backlog for 2025, highlighting firm aspirations for thriving growth in the upcoming year.
Reviewing 2024 Financial Performance
In the fourth quarter of 2024, Selvita reported a remarkable revenue of EUR 22.5 million, marking a substantial 14% increase year over year. The company achieved an EBITDA amounting to EUR 4.8 million, reflecting a 26% rise when compared to the same period last year, resulting in an EBITDA margin of 21.1%. This improvement underlines that the second half of 2024 significantly exceeded the first half. Commercial revenues also climbed by 20% compared to the first half of the year.
Revenue Growth from Big Pharma Clients
Revenue generated from major pharmaceutical clients reached EUR 20.2 million, witnessing a remarkable 51% surge compared to the previous year, which now accounts for 26% of Selvita's total revenue. This solidifies the Group's foundation through long-term contracts that enhance revenue stability.
Optimism for 2025
The backlog for 2025 is expected to reach EUR 51 million, reflecting an 11% year-over-year increase. The management believes that the introduction of PozLab, which was acquired the previous year, will contribute positively to Selvita's operating profits by the end of the year.
Analyzing H2 Performance
Selvita consistently achieved revenue growth through 2024, resulting in noticeable profitability improvements in the latter half of the year.
Quarterly Financial Highlights
- In Q4, organic commercial revenues totaled EUR 21.6 million, indicating a growth of 10% from Q3 and 10% year-on-year, contributing to a 16.5% increase in H2 compared to H1.
- The company experienced considerable gains in profitability. Organic EBITDA in Q4 reached EUR 5.2 million, showing a 26% rise from Q3, and a 36% increase year-on-year, accompanied by a 23.6% EBITDA margin.
- Including acquisitions, commercial revenues for Q4 achieved EUR 22.5 million, marking a 14.3% year-on-year increase, while H2 revenues totaled EUR 43 million, reflecting both a 20% H2-over-H1 increase and a 12% year-on-year rise.
- Overall, the Group's EBITDA in Q4 was EUR 4.8 million, causing the margin to increase by 2.2 percentage points year-over-year.
Comprehensive Performance in 2024
In total, for 2024, Selvita reported revenues of EUR 80.4 million, compared to EUR 77.7 million in 2023. The EBITDA was recorded at EUR 13.0 million, which represents a margin of 16.1%, down from EUR 16.3 million the previous year, attributed to fluctuations in foreign exchange and capacity issues related to human resources.
Expansion Plans
During Q2 2024, Selvita expanded its operations to Poznan and Wroclaw, targeting growth in high-margin markets like CDMO and biological drug discovery. Following its acquisition, PozLab’s revenue trajectory has been positive, with expectations to produce favorable operating results by 2025.
2025 Backlog Insights
The 2025 backlog displays an 11% increase in contract value, with normalized growth at 18% year-on-year. It indicates healthy increases in contracting, particularly a 20% rise in drug discovery segments and a 35% rise in commitments from big pharmaceutical companies.
About Selvita
Founded in 2007, Selvita is among the leading preclinical CROs in Europe, committed to bridging the gap between early drug discovery and clinical stages of drug development. The company specializes in various therapeutic areas and provides a broad range of services tailored to client needs. Operating worldwide, Selvita employs nearly 1000 skilled professionals, of which more than a third hold PhD degrees.
Frequently Asked Questions
What are Selvita's main services?
Selvita offers services that span early drug discovery to clinical development, including a strong focus on multiple therapeutic areas.
How much revenue did Selvita generate in Q4 2024?
In Q4 2024, Selvita generated EUR 22.5 million in revenue.
What is Selvita's EBITDA margin for 2024?
Selvita's EBITDA margin was reported at 16.1% for the year 2024.
What was the backlog for Selvita in 2025?
The backlog for 2025 stands at EUR 51 million, marking an 11% year-over-year increase.
Where does Selvita operate?
Selvita has operations in Krakow, Poznan, Wroclaw, and Zagreb, along with international offices.
About The Author
Contact Kelly Martin privately here. Or send an email with ATTN: Kelly Martin as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
