Selvita Reports Rebound in H2 2024 and 11% Increase in Backlog for 2025

KRAKOW, Poland, March 27, 2025 /PRNewswire/ -- Selvita S.A. (WSE: SLV), one of Europe's leading preclinical CROs, has announced its financial results for 2024 and provided an update on its backlog for 2025.

Key Highlights:

• In Q4 2024, Selvita generated EUR 22.5 million in commercial revenues, marking a 14% year-over-year increase. EBITDA reached EUR 4.8 million, up 26% y/y^1,2, with an EBITDA margin of 21.1%, compared to 14.1% in the first three quarters of the year. As anticipated, the second half of 2024 significantly outperformed the first, with commercial revenues up 20% and EBITDA increasing by 86% compared to H1.
• Revenues from big pharma³ customers totaled EUR 20.2 million, a 51% y/y increase. Big Pharma now represents 26% of Selvita's revenue, reinforcing the Group's foundation with long-term contracts.
• The backlog for 2025 stands at EUR 51 million⁴, reflecting an 11% y/y increase.
• The company is optimistic about revenue growth from PozLab, acquired a year ago, and expects it to contribute positively to the Group's operating results by the end of 2025.
• Selvita has ample capacity for organic growth, with secured infrastructure that, when fully utilized, could allow us to nearly double current revenue levels. Capital expenditure for 2025 is expected to be modest.

A video conference to discuss Selvita's 2024 results will be held on March 27 at 11:00 a.m. The event will be livestreamed at live.selvita.com.

Bogusław Sieczkowski, co-founder and Chief Executive Officer of Selvita, stated:

"As an organization, we remain highly flexible and continuously position ourselves for growth. Our strong H2 performance demonstrates our ability to swiftly capitalize on the improved sector financing environment, enabling us to restore EBITDA margins above 20%. We are entering 2025 with solid momentum, though recent weeks have seen a slowdown in customer decision-making. Our backlog suggests a stronger first half of the year compared to 2024, but maintaining momentum in H2 will depend on stabilization of volatile sentiment driven by macroeconomic uncertainty."

Dariusz Kurdas, Chief Financial Officer, added:

"The fourth quarter exceeded our expectations, contributing to nearly double the EBITDA level seen in H1. We continue to benefit from operating leverage and the integration of our 2024 acquisitions. As planned, PozLab is on track to contribute positively to operating profit by the end of the year.

We are closely monitoring industry sentiment and capital markets. Entering this volatile macroeconomic period, we have minimal investment needs, having already made significant infrastructure investments in recent years. Our existing facilities, combined with secured expansion space, provide the potential to nearly double revenue levels when fully utilized."

Strong Revenue and Profitability Growth in H2 2024

As projected, Selvita achieved revenue growth throughout every consecutive quarter of 2024, leading to a marked improvement in profitability in H2.

• Organic commercial revenues in Q4 totaled EUR 21.6 million, up 10% from Q3 and 10% y/y, contributing to a 16.5% H2-over-H1 increase.
• Operating leverage drove substantial profitability gains. Organic EBITDA in Q4 reached EUR 5.2 million, rising 26% from Q3 and 36% y/y, with a 23.6% EBITDA margin (up 5 percentage points y/y). H2 EBITDA reached EUR 9.3 million, up 85% from H1.
• Including last year's acquisitions, commercial revenues in Q4 amounted to EUR 22.5 million (up 14.3% y/y). H2 revenues totaled EUR 43.0 million, reflecting a 20% H2-over-H1 increase and a 12% y/y rise.
• Group EBITDA stood at EUR 4.8 million in Q4 (up 26% y/y), with an EBITDA margin of 21.1% (up 2.2 percentage points y/y). H2 EBITDA was EUR 8.4 million, up 86% from H1.

Full-Year 2024 Financial Performance

For 2024, the Group, including acquired entities, reported revenues of EUR 80.4 million compared to EUR 77.7 million in 2023. EBITDA stood at EUR 13.0 million (16.1% margin) versus EUR 16.3 million¹ in 2023. EBITDA profit in 2024 was impacted by foreign exchange differences (approximately EUR 1.9 million), as well as unused human resources and assets acquired in Q2, which were integrated in 2024 (approximately EUR 1.9 million).

In Q2 2024, Selvita launched operations in new sites in Poznan and Wroclaw, expanding into high-margin CDMO and biological drug discovery markets. PozLab's revenue has grown successively since acquisition and is expected to start generating a positive operating result no later than the end of 2025.  The Wroclaw site is now operational, with initial contracts underway and larger projects anticipated in the coming months. The site is expected to achieve profitability in 2026.

• Drug discovery segment revenue (74% of Group total) reached EUR 16.9 million in Q4, up 12% from Q3 and 10% y/y.
• Drug development segment revenue reached EUR 5.6 million in Q4, increasing 5% from Q3 and 31% y/y.
• Big Pharma clients³ generated EUR 20.2 million in 2024, up 51% y/y, strengthening Selvita's long-term revenue stability.
• European customers contributed EUR 54.8 million (69% of Group revenues), while U.S.-based customers accounted for EUR 21.4 million (27%).

2025 Backlog and Outlook

The backlog for 2025⁴ reflects an 11% y/y increase in contract value, with normalized⁵ growth of 18% y/y. The backlog structure indicates, among other things, a 20% increase in normalized⁵ contracting in the drug discovery segment and a 35% increase in contracting from Big Pharma clients³.

Notes:

1. Excludes EUR 11.6 million, accounting (IFRS) gain on loss of control of Ardigen S.A.
2. Results exclude non-cash costs of non-dilutive employee incentive program.
3. Big Pharma is defined as a global pharmaceutical company reporting revenues in excess of $5 billion in 2024.
4. Backlog as of March 25, 2025, and March 26, 2024.
5. Excluding revenues from Galapagos.

All % calculated from PLN. 
All values are calculated from PLN using an average exchange rate for the respective reporting period.

About Selvita (SLV)            

Selvita is one of the leading preclinical contract research organizations in Europe, driven by a clear mission: to offer a comprehensive scope of services bridging the gap between early drug discovery and the clinical stage of drug development.

The drug discovery department offers a comprehensive scope of services bridging the gap between early drug discovery and the clinical stage of drug development.  The department specializes in a variety of therapeutic areas, including infectious diseases, inflammation, fibrosis, and oncology, offering both stand-alone and fully integrated services tailored to your needs.

The drug development division provides extensive drug development and regulatory support, including analytical support for both small and large molecules, microbiology, formulation, and clinical trial batch manufacturing, adheres to the highest quality standards under GMP and GLP regulations.

Selvita, established in 2007, operates globally with ca.1000 highly qualified employees, of which over 35% hold a PhD degree. With state-of-the-art facilities in Krakow, Poznan, Wroclaw, and Zagreb, and international offices in Cambridge, MA, the San Francisco Bay Area, and Cambridge, UK, Selvita offers a global network of expertise and resources.
Selvita is listed on the Warsaw Stock Exchange (WSE: SLV). For more information, please see www.selvita.com.

SOURCE Selvita S.A.