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Mar 31, 2023
Bio-Rad Q1 2023 Earnings Report
Bio-Rad's financial performance decreased due to decline in COVID-related sales but was encouraged by strength of core business.
Key Takeaways
Bio-Rad Laboratories reported a decrease in first-quarter 2023 net sales by 3.3% compared to the same period in 2022, with COVID-related sales significantly impacting the results. Excluding COVID-related sales, revenue increased by 6.1% on a currency neutral basis. The company is updating its financial outlook for full-year 2023 and full-year 2025.
First-quarter net sales were $676.8 million, a 3.3 percent decrease compared to $700.1 million in 2022.
Excluding COVID-related sales, revenue increased 6.1 percent on a currency neutral basis.
Life Science segment net sales decreased by 6.8 percent, but grew 9.6 percent excluding COVID-related sales.
Clinical Diagnostics segment net sales were essentially flat compared to the same period in 2022, with a 2.8 percent increase on a currency-neutral basis.
Bio-Rad
Bio-Rad
Bio-Rad Revenue by Segment
Revenue by Segment
Life Science Revenue
CapyFin.comClinical Diagnostics Revenue
CapyFin.com Forward Guidance
Bio-Rad is updating its financial outlook for full-year 2023. The company currently anticipates non-GAAP currency-neutral revenue growth of approximately 4.5 percent in 2023 compared to its previous estimate of 6.0 to 7.0 percent and an estimated non-GAAP operating margin of approximately 17.5 percent versus the company’s prior estimate of approximately 19.5 percent.
Positive Outlook
- Anticipates non-GAAP currency-neutral revenue growth of approximately 4.5 percent in 2023.
- Estimates non-GAAP operating margin of approximately 17.5 percent.
- Targets a currency-neutral, compounded annual average core revenue growth rate of approximately 8.0 percent between 2021 and 2025.
- Aims for an adjusted EBITDA margin of approximately 26.0 percent in 2025.
- Excluding COVID-related sales, Bio-Rad estimates full-year 2023 non-GAAP currency-neutral revenue growth to be approximately 8.5 percent.
Challenges Ahead
- Lingering effects of supply chain challenges continued to impact operations during the quarter.
- The company is updating its financial outlook for full-year 2023.
- The company currently anticipates non-GAAP currency-neutral revenue growth of approximately 4.5 percent in 2023 compared to its previous estimate of 6.0 to 7.0 percent
- An estimated non-GAAP operating margin of approximately 17.5 percent versus the company’s prior estimate of approximately 19.5 percent.
- Company now targets a currency-neutral, compounded annual average core revenue growth rate of approximately 8.0 percent between 2021 and 2025 versus its previous target of approximately 8.9 percent and an adjusted EBITDA margin of approximately 26.0 percent in 2025 compared to the company’s previous target of approximately 28.0 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income