#Poland #Kraków #preclinical CRO #Selvita S.A. #PozLab

Selvita's Financial Highlights and Strong Market Position

Selvita S.A., a prominent player in Europe’s preclinical contract research outsourcing market, has showcased impressive financial results for the full year 2024, particularly in the second half. The company's recent report indicates a rebound in commercial revenues, marking a dramatic turnaround compared to previous periods.

In the fourth quarter of 2024 alone, Selvita generated EUR 22.5 million in commercial revenues, achieving a 14% year-over-year increase. The company also recorded an EBITDA of EUR 4.8 million, reflecting a 26% annual rise and underscoring a solid EBITDA margin of 21.1%. This is a considerable improvement from earlier quarters, particularly Q1-Q3, where margins were notably lower. Notably, the second half of 2024 outperformed the first half, with revenues up 20% and a staggering 86% rise in EBITDA.

Growth Driven by Big Pharma and Backlog Increase

A significant portion of Selvita's revenue growth has been attributed to its success with major pharmaceutical clients, which accounted for EUR 20.2 million or 26% of total revenues. The company's efforts in building long-term contracts with these large clients have fortified its revenue foundation, securing stability in its business model.

Looking ahead, Selvita's backlog for 2025 stands at EUR 51 million, reflecting an 11% year-over-year increase. This surge in backlog indicates positive growth momentum, with projections for a healthier first half of the year compared to the previous year.

Expanding Operations and Future Prospects

Selvita remains committed to expanding its operations. The acquisition of PozLab, finalized a year ago, is expected to contribute positively to the overall operating results by the end of 2025. The company is optimistic about utilizing existing infrastructure, which has the potential to nearly double current revenue levels if fully leveraged.

The CEO, Bogusław Sieczkowski, highlighted the organization’s flexibility and readiness to seize growth opportunities as the financial landscape improves, noting their restored EBITDA margins exceeding 20%. Despite recent slowdowns in customer decision-making, the current backlog suggests a fruitful first half of 2025 as long as market sentiments stabilize amid macroeconomic uncertainties.

Financial Performance Overview

For the entire year 2024, Selvita recorded revenues of EUR 80.4 million, up from EUR 77.7 million in 2023, and an EBITDA of EUR 13.0 million (16.1% margin), indicating some pressures from foreign exchange and integration costs associated with new hires and assets. The drug discovery segment remains the largest revenue contributor, accounting for 74% of the total revenue.

With newly opened sites in Poznan and Wroclaw targeting high-margin markets for CDMO and biological drug discovery, Selvita is poised for growth. The Wroclaw facility is now operational, with initial projects kickstarting profitability expectations in the coming years.

Conclusion

Selvita’s recent financial reports depict a thriving organization capable of navigating through challenges and capitalizing on market opportunities. With a reinforced focus on long-term contracts and an expanding operational footprint, Selvita looks poised for sustained success in the fast-evolving landscape of preclinical research and drug development.