Trinity Biotech PLC (TRIB) Q2 2024 Earnings Call Highlights: Strong Point-of-Care Growth Amidst ...

In This Article:

  • Revenue: $15.8 million, a 14% increase compared to Q2 2023.

  • Point-of-Care Revenue: $4.6 million, a 119% increase year-over-year.

  • Clinical Laboratory Revenue: $11.3 million, a 4.6% decrease compared to Q2 2023.

  • Gross Profit: $5.7 million, with a gross margin of 36.2%.

  • Research and Development Expenses: $1 million, down $200,000 from Q2 2023.

  • SG&A Expenses: $6.4 million, a decrease of $1.5 million from Q2 2023.

  • Restructuring Costs: $1.9 million related to the transformation plan.

  • Operating Loss: $4.1 million, compared to $14.9 million in Q2 2023.

  • Net Loss from Continuing Operations: $6.8 million, compared to $18.3 million in Q2 2023.

  • Adjusted EBITDASO: Loss of $1.4 million, compared to $2.6 million loss in Q2 2023.

  • Basic Loss per ADS: $0.71, compared to $0.78 in Q2 2023.

  • Cash Balance: Decreased from $5.8 million to $5.3 million at the end of June.

  • Cash Used by Operations: $1.1 million, an improvement of $3.3 million from Q2 2023.

Release Date: August 14, 2024

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

Positive Points

  • Trinity Biotech PLC (NASDAQ:TRIB) reported over 50% quarter-on-quarter revenue growth in point-of-care revenue, driven by the successful scaling of rapid HIV test output.

  • The company achieved a 45% improvement in operating profitability before impairment charges and restructuring costs quarter over quarter.

  • Trinity Biotech PLC (NASDAQ:TRIB) is on track to achieve annualized run rate revenues of approximately $75 million by Q2 2025 with $20 million in EBITDASO.

  • The company successfully implemented further automation of manufacturing processes, reducing the net cost of manufacturing.

  • Trinity Biotech PLC (NASDAQ:TRIB) has made significant progress in its comprehensive transformation plan, including offshoring manufacturing and optimizing the supply chain.

Negative Points

  • Clinical laboratory revenues decreased by 4.6% compared to Q2 2023, primarily due to lower hemoglobins revenues.

  • The company incurred restructuring costs totaling $1.9 million related to its comprehensive transformation plan.

  • TrinScreen HIV sales are currently diluting the overall margin percentage, although improvements are expected in the future.

  • Net loss from continuing operations was $6.8 million in the quarter, compared to $18.3 million in the same quarter last year.

  • The cash balance decreased from $5.8 million at March 31 to $5.3 million at the end of June, with cash used by operations amounting to $1.1 million in the quarter.

Q & A Highlights

Q: How did TrinScreen HIV's performance compare to internal expectations, and is the $8 million revenue target for 2024 still achievable? A: John Gillard, CFO, stated that TrinScreen HIV met expectations, with uncertainties around ordering patterns and manufacturing scale-up being managed. The company is on track for the $8 million target and is assessing potential upside for the rest of the year.