Tecan Group Achieves Sales Goals Despite Market Challenges
In a recent trading statement, Tecan Group (SIX Swiss Exchange: TECN) announced its preliminary unaudited sales results for the fiscal year 2024, successfully meeting the revised projections issued earlier in the fiscal year. This announcement underscores the resilience of Tecan in a shifting marketplace characterized by significant challenges.
Market Conditions Impacting Tecan's Performance
The year 2024 proved to be a testing time for Tecan. Faced with a downward trend in spending from the biopharmaceutical sector, the demand for life science research instruments saw a notable decline. This downturn adversely affected both the Life Sciences and Partnering Business segments. The company also experienced difficulties attributed to a broader market weakness in a key region, which impeded both direct sales and transactions through global Original Equipment Manufacturer (OEM) customers.
Reported sales for Tecan during fiscal year 2024 totaled CHF 934.3 million, marking a reduction of 13.0% in Swiss francs from the previous year’s CHF 1,074.4 million. In local currencies, the sales fell by 11.5%, aligning with the company’s revised outlook that anticipated a decrease between 12-14%. Particularly in the latter half of the fiscal year, sales dipped by 12.3% in Swiss francs and 11.3% in local currencies relative to the same timeframe in the previous fiscal year.
Tecan's Strategic Responses
Dr. Achim von Leoprechting, CEO of Tecan, commented on these challenges, expressing the company's commitment to enhancing its financial and operational resilience. The company initiated a comprehensive cost-reduction program aimed at optimizing operational efficiency and adapting structural elements of its cost base. This proactive approach intends to safeguard profitability while positioning for future growth when market conditions improve.
Despite the hurdles, Tecan is optimistic about its innovative capacity and standing as a dependable global partner within the healthcare landscape. The response to recently introduced products and partnerships has been encouraging, indicating a strong foundation for upcoming innovations in 2025.
Segment Performance Overview
Life Sciences Business
The Life Sciences segment recorded sales of CHF 397.0 million, down from CHF 451.8 million in 2023. This decline represents a drop of 12.1% in Swiss francs and 10.2% in local currencies. Within the latter half of the year, sales saw a less severe decrease of only 5.0% in local currencies compared to the steep decline of 15.5% faced in the first half.
Partnering Business Insights
In comparison, the Partnering Business generated CHF 537.3 million in sales during 2024, reflecting a drop of 13.7% in Swiss francs and 12.4% in local currencies from the CHF 622.6 million in 2023. Notably, the company did not record any further sales attributable to pure pass-through material costs in this segment, a significant decrease from the CHF 8.0 million achieved the prior year. The second half of the year saw a more pronounced sales decrease of 15.9% in local currencies.
Future Outlook and Financial Guidance
Tecan anticipates maintaining an adjusted EBITDA margin of 16-18% of sales, excluding costs related to acquisitions and integration. The company remains steadfast in its mid-term outlook as articulated in the recent Capital Markets Day.
The detailed audited financial results for the year 2024 are scheduled to be disclosed on March 12, 2025, providing further insights into the company's year-end performance.
About Tecan
Founded in 1980 and headquartered in Switzerland, Tecan is a prominent player in laboratory automation, dedicated to enhancing healthcare by providing innovative solutions that empower customers globally. With a workforce exceeding 3,500, Tecan operates manufacturing, research, and development facilities across Europe, North America, and Asia while maintaining a comprehensive sales and service network in over 70 countries. Its registered shares are listed on the SIX Swiss Exchange under the ticker TECN.
Contact Information
For further inquiries, please contact:
Tecan Group
Martin Brändle
Senior Vice President, Corporate Communications & IR
Tel. +41 (0) 44 922 84 30
Fax +41 (0) 44 922 88 89
investor@tecan.com
www.tecan.com
Frequently Asked Questions
What sales results did Tecan report for 2024?
Tecan reported sales of CHF 934.3 million for fiscal year 2024, down 13.0% from CHF 1,074.4 million in 2023.
Which factors impacted Tecan's sales performance?
Reduced spending in the biopharmaceutical sector and market weakness in specific regions significantly impacted Tecan's sales.
What is Tecan's outlook for profitability?
Tecan expects to maintain an adjusted EBITDA margin of 16-18% of sales, focusing on cost management and operational efficiency.
When will Tecan release its full financial results?
The complete audited financial results for 2024 will be published on March 12, 2025.
How has Tecan responded to the challenging market conditions?
The company has enacted a cost-reduction program and continues to innovate, preparing for future market recovery.
