Latest news with #DSRLF
Yahoo
01-08-2025
- Business
- Yahoo
Diasorin SpA (DSRLF) (H1 2025) Earnings Call Highlights: Strong Growth Amidst Market Challenges
Revenue: 919 million, up 5% compared to the same period last year. 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.
Yahoo
17-03-2025
- Business
- Yahoo
Diasorin SpA (DSRLF) Full Year 2024 Earnings Call Highlights: Resilient Performance Amid Global ...
Release Date: March 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Diasorin SpA (DSRLF) reported revenue and profitability in line with their plan, budget, and guidance for 2024, despite geopolitical tensions. The company successfully launched the Liaison Complex with respiratory panels, leading to better-than-expected performance in the molecular segment. Diasorin SpA (DSRLF) raised its guidance twice in 2024, indicating strong performance and confidence in their business strategy. The US hospital strategy is working well, with the company achieving its target of serving 400 hospitals by year-end. The company experienced double-digit growth in Europe, driven by successful placements and increasing volumes. Diasorin SpA (DSRLF) continues to face difficulties in China, with double-digit revenue decreases due to local competition and economic conditions. COVID-19 testing revenues have significantly decreased, impacting overall revenue growth. The company faces tough competition in certain markets, such as Iran, affecting export revenues. There is a mild start to the flu season, which has impacted the molecular diagnostics segment. The company is experiencing inflationary pressures and increased manufacturing costs, particularly in their new Shanghai plant. Warning! GuruFocus has detected 5 Warning Signs with DSRLF. Q: Can you elaborate on the guidance for 2025, considering the headwinds like European immuno diagnostics and China? Does your guidance imply a 9-10% underlying growth excluding these factors? Also, how does the Liaison XXL expand your addressable market in the US? A: The XXL system is designed to protect our existing install base while expanding into hospital and laboratory markets. It offers a 30-35% increase in throughput, allowing us to serve both large commercial labs and hospital markets. Excluding China, we expect double-digit growth in the US and high single-digit growth in Europe for 2025. Q: How do you navigate the US market given the potential impacts from tariffs, vaccination hesitancy, and NIH budget cuts? Also, what is your outlook for China with a broader product portfolio by 2026? A: Decreased vaccination rates could lead to outbreaks, which may benefit our diagnostics business. We haven't seen significant impacts from NIH budget cuts yet. For China, while it's not strategic in the short term, having products manufactured locally positions us well if the market improves. Q: Could you clarify the target for Liaison Plex customers by the end of 2025? You mentioned both 100 and 150 customers. A: Both numbers are correct. We have a funnel of 100 customers corresponding to 500 systems. Our ambition for 2025 is to have 150 customers using our platforms, aiming for a multiplexing business growth to 75 million, representing a 25% increase from 2024. Q: What is the expected impact of VBP in China for 2025, and how do you see the immuno business growth drivers? A: The VBP impact in China is expected to be 5-6 million in 2025. For the immuno business, growth is driven by a diverse portfolio, including Quantiferon, stool diagnostics, and infectious disease panels, with significant interest in our M product. Q: How do you anticipate the LTG business performing, given the recovery in life sciences and biopharma segments? A: The LTG business is expected to grow below the overall 8% guidance for 2025. We see recovery in life sciences and biopharma, with diagnostics representing 50% of the LTG business, providing stability against life sciences headwinds. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
