In This Article:
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eckert & Ziegler SE (XTER:EUZ) reiterated its optimistic outlook for achieving its 2025 guidance of 320 million in net sales and 78 million in adjusted EBIT.
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The company has secured new supply agreements for isotopes, including Actinium and Luitium, which are crucial for future growth.
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A new partnership with Bicycle Therapeutics highlights the growing importance of CMO activities in the company's portfolio.
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The company successfully executed a license deal with a Chinese company, generating $10 million plus royalties, demonstrating its strategic expansion in the Chinese market.
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Despite challenges, the company's EBIT margin improved from 22% to 24%, indicating better profitability management.
Negative Points
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A cyberattack in February significantly disrupted operations, affecting production, shipping, and invoicing, leading to delays in revenue recognition.
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The temporary stop in generator production further impacted the company's ability to meet customer demand in the first quarter.
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The isotope segment experienced a weaker product mix, resulting in a lower gross margin of 44% compared to 46% last year.
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Currency effects and higher inflation continue to influence net income negatively.
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The company's reliance on a single competitor in the generator market poses a risk if similar disruptions occur in the future.
Q & A Highlights
Q: Can you provide guidance on the one-off payments from tech transfers for 2025 and 2026? A: The one-off payment from tech transfers is not a recurring business like generators. We aim to be a full-service provider, and while we strive for continuous license deals, it's challenging to predict exact timings. The current deal with the Chinese joint venture is worth 5 million euros for this year, with the rest to be shown over time. (Unidentified_1 and Unidentified_3)
Q: What was the impact of the cyberattack on your revenue, particularly in the medical segment? A: The cyberattack blocked our systems, affecting production and shipping, mainly in the medical segment. We expect to recover the lost revenue in the following months, with April's shipments confirming this recovery. (Unidentified_1)
Q: How did your customers react to the delays caused by the cyberattack? A: Customers were understandably upset but appreciated our proactive communication and efforts to resolve the issue. The feedback was generally understanding, and complaints were minimal. (Unidentified_1)