Bio-Rad Reports First-Quarter 2023 Financial Results

Original from: businesswire

Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global leader in life science research and clinical diagnostic products, today announced financial results for the first quarter ended March 31, 2023.

​

First-quarter 2023 net sales were $676.8 million, a decrease of 3.3 percent compared to $700.1 million reported for the first quarter of 2022. On a currency-neutral basis, quarterly sales decreased 0.3 percent compared to the same period in 2022. COVID-related sales were $2.6 million in the first quarter of 2023 versus approximately $45 million in the year ago period. Excluding COVID-related sales, revenue increased 6.1 percent on a currency-neutral basis.

Life Science segment net sales for the first quarter were $323.6 million, a decrease of 6.8 percent compared to the same period in 2022. On a currency-neutral basis, Life Science segment sales decreased by 3.6 percent compared to the same quarter in 2022. Excluding COVID-related sales, Life Science revenue grew 9.6 percent and was primarily driven by qPCR, western blotting, and Droplet Digital™ PCR products.

Clinical Diagnostics segment net sales for the first quarter were $352.1 million, or essentially flat when compared to the same period in 2022. On a currency-neutral basis, net sales increased 2.8 percent versus the same quarter last year. Excluding COVID-related sales, Clinical Diagnostics revenue increased 3.1 percent year over year, on a currency-neutral basis, driven by strong demand for diagnostic instruments.

First-quarter gross margin was 53.5 percent compared to 57.5 percent during the first quarter of 2022.

Income from operations during the first quarter of 2023 was $61.9 million versus $146.4 million during the same quarter last year.

Net income for the first quarter of 2023 was $69 million, or $2.32 per share, on a diluted basis, versus a net loss of $3,367 million, or $112.50 per share, on a diluted basis, during the same period in 2022. Net income (loss) amounts for the first quarter of 2023 and 2022 were primarily impacted by the recognition of changes in the fair market value of equity securities related to the holdings of the company’s investment in Sartorius AG.

The effective tax rate for the first quarter of 2023 was 18.7 percent, compared to 22.9 percent for the same period in 2022. The effective tax rate reported in Q1 2023 was primarily affected by geographical mix of earnings. The effective tax rate reported in Q1 of 2022 was primarily affected by an unrealized loss in equity securities.

“The expected decline in first quarter COVID-related sales resulted in lower year-over-year total revenues; however, we are encouraged by continued underlying strength of our core business in Life Science and Clinical Diagnostics,” said Norman Schwartz, Bio-Rad’s President and Chief Executive Officer. “While lingering effects of supply chain challenges continued to impact our operations during the quarter, we are working diligently through our elevated order backlog to meet customer demand.”

The non-GAAP financial measures discussed below exclude certain items detailed later in this press release under the heading “Use of Non-GAAP and Currency-Neutral Reporting.” A reconciliation between historical GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this press release.

Non-GAAP gross margin was 54.2 percent for the first quarter of 2023 compared to 58.2 percent during the first quarter of 2022.

Non-GAAP income from operations during the first quarter of 2023 was $84.2 million versus $156.8 million during the comparable prior-year period.

Non-GAAP net income for the first quarter of 2023 was $99.4 million, or $3.34 per share, on a diluted basis, compared to $151.5 million, or $5.02 per share, on a diluted basis, during the same period in 2022.

The non-GAAP effective tax rate for the first quarter of 2023 was 20.9 percent, compared to 19.6 percent for the same period in 2022. The higher rate in 2023 was driven by geographical mix of earnings and lower compensation-related deductions.

Updated 2023 Financial Outlook

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. Excluding COVID-related sales, Bio-Rad estimates full-year 2023 non-GAAP currency-neutral revenue growth to be approximately 8.5 percent versus its prior guidance of 10.0 to 11.0 percent.

Updated 2025 Financial Outlook

Bio-Rad is also updating its financial outlook for full-year 2025 presented at the company’s 2022 Investor Day event on February 25, 2022. The 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. Core revenue is defined as currency-neutral, non-GAAP revenue that also excludes COVID-related sales.

​

Source: Bio-Rad Reports First-Quarter 2023 Financial Results