Diasorin SpA (DSRLF) (H1 2025) Earnings Call Highlights: Strong Growth Amidst Market Challenges
Core Business Growth (Excluding COVID): 8% growth in the first six months of 2025 at constant exchange rate.
Gross Profit: 406 million, representing 60% of total revenues.
Gross Margin: Stable at 66% of revenues in Q2 2025.
Adjusted Operating Expenses: 232 million, representing a 1% increase year over year.
EBITDA: 240 million, exceeding prior year by 8% at current exchange rate.
EBITDA Margin: 35% at constant exchange rate, better than 34% recorded in 2024.
Net Debt: 683 million, an increase of 66 million compared to 2024 year-end.
Cash Flow: Almost 85 million generated in H1 2025.
Immuno Diagnostic Growth: 8% in Q2 2025.
Molecular Diagnostic Growth (Excluding COVID): 8% in Q2 2025.
License Technology Growth: 10% in H1 2025, 7% in Q2 2025.
Adjusted Tax Rate: Increased from 23% to 25%.
Warning! GuruFocus has detected 6 Warning Signs with DSRLF.
Release Date: July 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Diasorin SpA (DSRLF) reported a solid quarter with top-line growth and a margin of 36%, in line with expectations.
The immuno diagnostics segment grew by 8% in Q2, driven by strong performance in North America and Europe.
The company signed a significant million-dollar contract in the US, marking a strategic win in the healthcare system.
Molecular diagnostics, excluding COVID, showed an 8% growth in Q2, with a strong performance in the multiplex syndromic business.
The company is on track to meet its target of adding 75 new customers by the end of the year, with 40 active customers already secured.
Negative Points
China remains a challenging market with a double-digit decrease in revenues due to the impact of VBP, although it represents less than 5% of total revenue.
The company faces foreign exchange headwinds, impacting revenues by approximately 11 million in the quarter.
Gross margin remained stable at 66%, but tariffs and the full operation of the Chinese manufacturing plant added pressure.
The company anticipates higher operating expenses in the second half of the year due to salary cycles and discretionary costs.
The discontinuation of the Aries platform resulted in a revenue loss of 5.5 million in H1 2024, with no sales in 2025.
Q & A Highlights
Q: Hi, good afternoon. My first question is on China. Your competitor mentioned a DRG or debundling dynamic impacting panel-based testing in immuno assays. Are your products affected by this debundling plan? A: Yes, we are aware of the DRG dynamic. It is part of China's strategy to cut costs, affecting both local and international companies. China will become a less profitable market due to reduced consumption and price pressures. Our strategy is to focus on specialty products that offer clinical value and are less impacted by these changes.
Q: Could you explain why the gross margin was flat year-on-year, but the EBITDA margin increased by 100 basis points to 35%? A: The gross margin remained stable despite tariffs and costs from our manufacturing plant in China. The EBITDA margin improvement is mainly due to reduced operating expenses, which decreased from 39% to 37% of revenues.
Q: On the million-dollar contract you mentioned, does this represent commitments, and how long will it last? A: The contract covers a healthcare system with core facilities and clinics, marking our first full system sale. This indicates significant business potential, as we previously only had wins in individual hospitals.
Q: On the discontinuation of the Aries business, can you share the revenue loss associated with this and the phasing for the 15 million one-off cost? A: The Aries platform, a molecular platform from Luminex, contributed 5.5 million in H1 2024. We expect no revenue loss as we transition production to Italy. The one-off costs are phased with 8 million booked now, 2-3 million expected in the second half of the year, and the remainder in 2026.
Q: Could you speak about the drivers behind the 11% growth in your molecular business? Was it driven by blood panels or stockpiling for the flu season? A: The growth is due to closing accounts and setting up systems, not stockpiling. Customers typically stock up in Q3 for the flu season.
Q: On licensed technologies, you mentioned expecting a softening in H2. Are you projecting a decline in revenue? A: While we expect a softening, we need to wait and see how the situation evolves. Mathematically, if we project 2-3% growth, H2 should be lower than H1.
Q: Regarding tariffs, are you better positioned than other diagnostic companies, and could this support your margins? A: The impact of tariffs is relatively small. If the industry decides to pursue price increases to cover tariffs, we will follow. However, we are not overly concerned due to our specialization and the small impact.
Q: On North America Immuno, is the growth due to new customer wins or existing customers consuming more of the menu? A: The growth is due to a combination of expanding our hospital install base and increasing product sales to existing customers. We have a strong relationship with major labs in the US, contributing to consistent growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Canoe EIT Income Fund Announces August 2025 Monthly Distribution and Quarterly Distribution on Preferred Units
CALGARY, Alberta, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Canoe EIT Income Fund (the 'Fund') (TSX - announces the August 2025 monthly distribution of $0.10 per unit. Additionally, the Fund announces a quarterly distribution for preferred units. Cumulative Redeemable Series 1 ( and Series 2 Preferred ( unitholders will receive a distribution of $0.30 per unit. Unitholders of record on August 22, 2025, will receive distributions payable on September 15, 2025. About Canoe EIT Income FundCanoe EIT Income Fund is one of Canada's largest closed-end investment funds, designed to maximize monthly distributions and capital appreciation by investing in a broadly diversified portfolio of high quality securities. The Fund is listed on the TSX under the symbol and is actively managed by Robert Taylor, Senior Vice President and Chief Investment Officer, Canoe Financial. About Canoe Financial Canoe Financial is one of Canada's fastest growing independent mutual fund companies managing over $20.0 billion in assets across a diversified range of award-winning investment solutions. Founded in 2008, Canoe Financial is an employee-owned investment management firm focused on building financial wealth for Canadians. Canoe Financial has a significant presence across Canada, including offices in Calgary, Toronto and Montreal. For further information, please contact:Investor Relations1–877–434– Fund makes monthly distributions of an amount comprised in whole or in part of Return of Capital (ROC) of the net asset value per unit. A ROC reduces the amount of your original investment and may result in the return to you of the entire amount of your original investment. ROC that is not reinvested will reduce the net asset value of the fund, which could reduce the fund's ability to generate future income. You should not draw any conclusions about the fund's investment performance from the amount of this distribution. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the information filed about the fund on before investing. Investment funds are not guaranteed and past performance may not be repeated. This communication is not to be construed as a public offering to sell, or a solicitation of an offer to buy securities. Such an offer can only be made by way of a prospectus or other applicable offering document and should be read carefully before making any investment. This release is for information purposes only. Investors should consult their Investment Advisor for details and risk factors regarding specific strategies and various investment in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
Michigan Gov. Whitmer makes another White House visit to meet with Trump
WASHINGTON (AP) — Michigan Gov. Gretchen Whitmer met with President Donald Trump at the White House on Tuesday to discuss the toll tariffs are taking on the auto industry and the potential effects of his tax and spending bill on Medicaid. It's the latest in a string of meetings between the Democratic governor and the Republican president after the two frequently clashed during his first term. In his second term, Whitmer has adopted a more diplomatic approach, drawing some backlash from fellow Democrats. But it's also resulted in multiple wins for Whitmer's state, including Trump's approving $50 million in storm relief and awarding a new fighter jet mission for an Air National Guard base in the state. 'I've always said that I'll work with anyone to get things done for Michigan,' Whitmer, a potential 2028 presidential candidate, said in a statement Tuesday. 'That's why I've continued to go to Washington, D.C., to make sure that Michiganders are front and center when critical decisions are being made.' The private meeting between Whitmer and Trump — which a White House official would not confirm but did stress Trump's continued focus on Michigan — marks a rare instance of the president sitting with a leading Democratic figure. In recent weeks, Trump attacked Senate Democratic leader Chuck Schumer, telling him to 'go to hell," while also taking aim at other high-profile Democratic governors who have pushed back on some of his policies, including California's Gavin Newsom and Illinois' JB Pritzker, also considered possible 2028 candidates. Pritzker has aided Texas Democrats in leaving their state to stay in Illinois to block Republicans from their needed quorum to pass a new congressional map backed by Trump. Early Tuesday, Trump called Pritzker 'probably the dumbest of all governors' in a television interview. Whitmer has been more careful, criticizing some of Trump's policies rather than the president himself. She issued an executive directive last week to assess the impact of tariffs that she said have led to 'massive economic uncertainty' — without mentioning Trump's name once. Tuesday's appearance ended with far less controversy than her trip to the White House in April. Whitmer was unexpectedly ushered into the Oval Office during that visit, standing awkwardly nearby as the Republican president signed executive orders and assailed his political opponents during a photo opportunity. In their White House meeting Tuesday, Whitmer said that she told Trump and 'his team about the impact tariffs are having on Michigan's economy, especially our auto industry.' She also discussed 'changes in the Medicaid program, and ongoing recovery efforts following the ice storm in Northern Michigan this year." Whitmer also saw Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and chief of staff Susie Wiles while at the White House. Trump announced last month that he had spoken with Whitmer to inform her that he was appproving $50 million in federal funds for Michigan to support repairs and recovery from a March ice storm. In April, Trump traveled to Michigan to announce a new mission for Selfridge Air National Guard Base, which Whitmer has sought for years.
Yahoo
24 minutes ago
- Yahoo
A full-time day trader shares his 3 pieces of advice for getting into investing
Zach Austin shared his top three tips for anyone interested in day trading. The full-time trader said the most important thing is to invest in your education before trading. "I could have saved myself so much time and money" by doing this, he said. "I could have saved myself so much time and money if I just invested first in my education," Zach Kleinwaks told Business Insider about his start in day trading. Now, Kleinwaks, 27, is a full-time day trader and posts his favorite stocks and hot takes with his 14,000 Instagram followers and 30,000 TikTok followers. He also teaches strategies for trading options and futures as an analyst at Stock Dads, a premium membership platform. He shared his three tips for getting into day trading. 1. Educate yourself Kleinwaks began day trading part-time in 2018 while studying at New York Institute of Technology and playing college baseball. His parents traded stocks when he was growing up, and he saw increasing numbers of people posting on social media about making money. During the COVID-19 pandemic, Kleinwaks' baseball career was cut short, so he decided to educate himself on trading before starting to do it full time in 2022. But he wished he had done this sooner. "You're not going to make money unless you have the education behind it," Kleinwaks added. He described his own approach as making connections and finding mentors, "kind of just like sifting through different people, different strategies, and kind of figuring out what was legit." 2. Have 'zero expectations' Kleinwaks advised beginners not to enter the market expecting to make a certain amount within a specific period. "Have zero expectations," he said, adding, "Expect the worst, hope for the best." Kleinwaks said he thought that the recent meme-stock mania — where shares in companies like Opendoor, Kohl's, and Krispy Kreme skyrocketed without an obvious catalyst such as strong earnings — was driven by investors who lacked a long-term plan and were eager to make money fast. "They don't have the confidence to make money in the market, so they feel like they need to gamble," he said. 3. Try to improve every day Kleinwaks also advised traders to improve "regardless of what step you're at." "You're going to make money, you're going to lose money, but don't try to make the same bad mistake multiple times," he added. He listed the most common mistakes as blindly following trades others say they are making on social media, putting in too much money at a time, and succumbing to FOMO, such as buying meme stocks now to make up for missing the GameStop frenzy in 2021. "I always circle back every year like, 'wow, I wish I knew what I know now, then,'" Kleinwaks said. Read the original article on Business Insider
