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• Order Entry: CHF903.6 million, a decrease of 12.1% year-on-year, or 10.5% in local currencies.

• Revenue: CHF934.3 million, a decrease of 13% in Swiss francs, or 11.5% in local currencies.

• Gross Profit: CHF320.6 million, down 17.9% from 2023, with a gross profit margin of 34.3%.

• Adjusted EBITDA: CHF164.4 million, with a margin of 17.6% of sales.

• Net Profit: CHF103.1 million, down from CHF164.4 million in 2023.

• Adjusted Earnings Per Share: CHF8.08, compared to CHF12.88 in 2023.

• Cash Flow from Operating Activities: CHF148.5 million, with a cash conversion of 15.9% of sales.

• Life Sciences Business Segment Sales: Decreased by 12.1% in Swiss francs, 10.2% in local currencies.

• Partnering Business Segment Sales: CHF537.3 million, a decrease of 13.7% in Swiss francs, 12.4% in local currencies.

• Dividend Proposal: CHF3 per share, with half paid from capital contribution reserve.

• Net Liquidity Position: CHF153.7 million as of December 31, 2024.

• Warning! GuruFocus has detected 8 Warning Signs with XSWX:TECN.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tecan Group AG (XSWX:TECN) demonstrated operational resilience by implementing a comprehensive cost reduction program and consolidating sites to optimize their global organizational footprint.

• The company successfully expanded its global commercial presence with a new sales office in South Korea and achieved a successful FDA inspection in its manufacturing facility in Penang, Malaysia.

• Innovation remains a key focus, with significant product launches in genomics, proteomics, and cell biology, including the groundbreaking multiomics liquid handling workstation, Veya.

• Tecan Group AG increased its purchase of electricity from renewable sources to 87%, reflecting its commitment to sustainability.

• The company maintained a strong financial position with a net liquidity increase to CHF153.7 million as of December 31, 2024, up from CHF112.6 million the previous year.

Negative Points

• Order entry for the full year 2024 decreased by 12.1% year-on-year, influenced by a shift in OEM customers' ordering patterns.

• Reported sales for the group in fiscal year 2024 decreased by 13% in Swiss francs, with a significant impact from reduced demand in the life sciences business segment.

• The gross profit margin decreased by 200 basis points to 34.3%, affected by lower sales volume and increased depreciation.

• The adjusted EBITDA margin decreased to 17.6% of sales, impacted by lower sales volumes and negative economies of scale.

• The market environment remains challenging, with continued uncertainties related to the NIH budget in the US and market conditions in China.