A Look at Evotec’s Business Year 2024
The biotechnology company Evotec was able to register a slight revenue increase of 2% to 797 million euros in the fiscal year 2024, despite a challenging market environment. Particularly noteworthy was the development of the Just – Evotec Biologics division, which managed to increase its revenue by an impressive 71% to 185.6 million euros. In the fourth quarter of 2024, the company’s revenue even rose by 10% to 221.2 million euros compared to the previous year, reaching the second-highest quarterly revenue of all time.
Challenges in the Shared R&D Segment
Despite these successes, Evotec had to face declines in other areas. The Shared R&D segment recorded a revenue drop of 9% to 611.4 million euros, partly due to temporary restructurings at pharmaceutical companies and selective financing in the biotech sector. Additionally, the adjusted Group EBITDA significantly fell from 66.4 million euros in 2023 to 22.6 million euros in 2024, attributed to a mismatch between revenue and cost base in the Shared R&D segment.
Strategic Realignment
In response to these challenges, Evotec is pursuing a strategic realignment with a two-pillar strategy in the areas of drug research and preclinical development as well as Just – Evotec Biologics. The goal is to simplify the business model and reduce the project portfolio by one-third. By 2028, Evotec plans to increase revenue by eight to twelve percent annually and raise the adjusted Group EBITDA margin to over twenty percent.
Outlook and Market Reactions
For the current fiscal year, Evotec expects another revenue increase to between 840 and 880 million euros and an improvement in adjusted EBITDA to between 30 and 50 million euros. These positive expectations led to an initial stock price increase of three to nine percent, although further successes are necessary in the long term to regain market trust.
In summary, Evotec shows positive revenue developments despite challenges in a difficult environment through the strong performance of Just – Evotec Biologics. The strategic realignment aims to ensure sustainable growth and stabilize investing shareholders.