PolyPeptide Announces Record Revenue Growth in Second Half of 2023

PolyPeptide Group AG reported a notable revenue increase of 43% in H2 2023 compared to H1, resulting in an annual revenue of EUR 320.4 million for 2023, marking a 14.0% rise from the previous year. Despite the departure from coronavirus-related projects and operational challenges, the company achieved significant operational progress in the latter half of the year.

While the company faced a decrease in EBITDA, reporting EUR -6.0 million in 2023 versus EUR 38.7 million in 2022, due to the phase-out of coronavirus-related business and the ramp-up of new capacities, it concluded three significant commercial agreements, indicating potential revenue doubling. However, the year ended with a net result of EUR -51.4 million, influenced by foreign exchange losses and ongoing operational adjustments.

PolyPeptide CEO, Juan José González, expressed determination to meet rising customer demand and further enhance operations and profitability in 2024, building on a pipeline that includes over 250 peptides, 55 of which are in phase III clinical development.

Despite operational challenges, the second half of 2023 saw improved cash flow and profitability due to the implementation of optimization measures. While the group anticipates a net loss in 2024, it expects mid to high single-digit revenue growth and has set a capital expenditure budget between EUR 60 million and EUR 70 million, aimed at expanding capacity and enhancing operational efficiency.

PolyPeptide will not propose a dividend payment at the 2024 Annual General Meeting due to the net loss reported for 2023. Nonetheless, recent improvements and strategic agreements position the company for future growth and recovery.