Tecan meets revised sales outlook for fiscal year 2024
Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
Tecan meets revised sales outlook for fiscal year 2024
Männedorf, Switzerland, January 8, 2025 - In a trading statement, the Tecan Group (SIX Swiss Exchange: TECN) today published unaudited preliminary sales results for fiscal year 2024, meeting the revised sales outlook provided on October 16, 2024.
The year 2024 was marked by a challenging market environment for Tecan. Reduced spending in the biopharmaceutical industry led to decreased demand for life science research instruments, impacting both the Life Sciences Business and the Partnering Business. Additionally, a general market weakness in China affected both direct sales and indirect business through global OEM customers. As a result, reported sales for the Group in fiscal year 2024 decreased by 13.0% in Swiss francs, totaling CHF 934.3 million (2023: CHF 1,074.4 million). In local currencies, sales were 11.5% below the prior-year period (2023: CHF 1,055.2 million), meeting the revised sales outlook that anticipated a decline of 12-14%. Sales in the second half decreased by 12.3% in Swiss francs and by 11.3% in local currencies compared to the prior-year period.
Tecan CEO Dr. Achim von Leoprechting commented: «The challenging market environment encouraged us to further enhance our financial and operational resilience. We initiated a comprehensive cost-reduction program, focusing on both operational cost management as well as structural adjustments to our cost base. These efforts are designed to protect our profitability in all market conditions, without limiting our ability to grow. We are ready to leverage a market recovery, thanks to our role as an innovation leader and trusted global partner in the healthcare sector. We are witnessing a strong reception of our newly launched products and partnerships in both of our divisions, and we look forward to additional launches in 2025.»
Segment sales
Sales in the Life Sciences Business reached CHF 397.0 million (2023: CHF 451.8 million or CHF 442.1 million in local currencies), reflecting a decrease of 12.1% in Swiss francs and 10.2% in local currencies. In the second half of the year, sales declined by 5.0% in local currencies, following the sharp 15.5% decline in the first half. Sequentially, the Life Sciences Business segment grew by 13.6% in local currencies when comparing the second half of 2024 to the first half.
The Partnering Business generated sales of CHF 537.3 million in 2024 (2023: CHF 622.6 million or CHF 613.1 million in local currencies), marking a decrease of 13.7% in Swiss francs and 12.4% in local currencies. As anticipated, Tecan did not record any further sales from the pure pass-through of material costs in this segment for 2024, compared to CHF 8.0 million in 2023. In the second half of the year, segment sales decreased by 15.9% in local currencies.
Additional information
Tecan continues to expect an adjusted EBITDA margin, excluding acquisition and integration-related costs, of 16-18% of sales.
Tecan reaffirms its mid-term outlook, as most recently presented at the Capital Markets Day on October 22, 2024.
The company will publish the full set of audited financial results 2024 as scheduled on March 12, 2025.
Key upcoming dates
The 2024 Annual Report will be published on March 12, 2025The Annual General Meeting of Tecan's shareholders will take place on April 10, 2025
About Tecan
Tecan (www.tecan.com) improves people's lives and health by empowering customers to scale healthcare innovation globally from life science to the clinic. Tecan is a pioneer and global leader in laboratory automation. As an original equipment manufacturer (OEM), Tecan is also a leader in developing and manufacturing OEM instruments, components and medical devices that are then distributed by partner companies. Founded in Switzerland in 1980, the company has more than 3,500 employees, with manufacturing, research and development sites in Europe, North America and Asia, and maintains a sales and service network in over 70 countries. Registered shares of Tecan Group are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).
For further information:
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
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