Revenue Growth And Margin Expansion in H1 2025

Original from: Diasorin

-  REVENUES: € 619 MILLION, +5% COMPARED TO H1’24 (+6% AT CER, +8% AT CER AND EXCLUDING COVID REVENUES), CONFIRMING THE FY’25 GUIDANCE;

-  ADJUSTED1 EBITDA2: € 214 MILLION, +10% AT CER COMPARED TO H1’24, EQUAL TO 35% OF REVENUES, CONFIRMING THE FY’25 GUIDANCE;

-  U.S. FDA 510(K) CLEARANCE FOR LIAISON PLEX® GRAM-POSITIVE BLOOD CULTURE ASSAY, COMPLETING THE PANEL PORTFOLIO TO DIAGNOSE BLOODSTREAM INFECTIONS ON THE MULTIPLEXING PLATFORM LIAISON PLEX®;

-  SUBMISSION OF THE MOLECULAR POINT-OF-CARE PLATFORM LIAISON NES® AND ITS FIRST RESPIRATORY PANEL TO THE U.S. FDA FOR 510(K) CLEARANCE AND CLIA WAIVER;

-  A PROJECT HAS BEEN INITIATED TO DISCONTINUE INDUSTRIAL OPERATIONS AT THE DIETZENBACH PLANT (GERMANY), AS PART OF THE STRATEGY TO OPTIMIZE THE GLOBAL PRODUCTION FOOTPRINT AND ENHANCE LONG-TERM COMPETITIVENESS.

The Board of Directors of Diasorin S.p.A. (FTSE MIB: DIA), examined and approved the Group’s Consolidated Financial Statements at June 30, 2025.

COMMENTS ON ECONOMIC RESULTS

REVENUES: € 619 million, +5% (+6% at CER). Excluding the COVID business, H1’25 revenues grew +8% at CER compared to the same period of the previous year, a result in line with the FY’25 guidance.

In Q2’25, revenues grew by +2%, following the unfavorable impact of the significant depreciation of the U.S. Dollar against the Euro and the expected decline in COVID sales. At CER, revenues grew by +5% (+7% excluding the COVID business). This result confirms the strong performance of the immunodiagnostic business line, along with positive contributions from the molecular diagnostics and Licensed Technologies franchises.

The following are the revenue trends of the different business lines:

-  Ex-COVID Immunodiagnostics: € 418 million, an increase of € 27 million, equal to +7% (+8% at CER) vs. H1’24, mainly driven by the excellent performance of CLIA specialty tests sales. The strong performance continued also in Q2’25 (+8% at CER), despite tough year-on-year comparable with 2024, which has been characterized by an increase in volumes driven by infectious disease outbreaks. The growth in H1’25 reflects the contribution of the U.S. Hospital Strategy and the increase in sales in Europe, driven by the broad offering of specialty tests, which more than offset the expected contraction of the Chinese market due to Volume-Based Procurement regulations.

-  Ex-COVID Molecular Diagnostics: € 103 million, +3% (+4% at CER) vs. H1’24. In Q2’24, business grew by 1% at CER, supported by the “Legacy Diasorin” tests, and by the positive contribution of the multiplexing business. The comparison with the same period of the previous year is affected by the discontinuation of the ARIES platform and by the absence of infectious disease outbreaks that had increased the 2024 sales volumes. Net of these factors, Q2’25 revenues grew by +6% at CER.

-  Licensed Technologies: € 91 million, +9% (+10% at CER) vs. H1’24, and +7% at CER in Q2’25. The favorable scheduling of certain major orders positively contributed to the performance of this business line.

-  COVID: € 7 million, equal to -50% (-49% at CER) vs. H1’24, in line with expectations, down compared to the same period of last year.

The following is the revenue performance by geographic area, net of the contribution of COVID products:

-  North America Direct: € 308 million, +10% (+12% at CER). The sales increase in H1’25 is mainly driven by the excellent performance of the immunodiagnostic business (+14% or +16% at CER), as a result of the success of the U.S. Hospital Strategy, as well as of the broad offering of CLIA specialties; the molecular diagnostic business registered also a positive performance (+5% or +7% at CER).

-  Europe Direct: € 217 million, +5% (+4% at CER). The growth in H1’25 was driven by the positive performance of the Immunodiagnostic business, with a focus on the specialty tests that characterize Diasorin's offerings, despite an unfavorable comparison with the same period in 2024, which benefited by an increase in sales volumes linked to some infectious disease outbreaks in the main European countries.

-  Rest of the World: € 88 million, -1% (+2% at CER). The positive performance of the markets in which Diasorin operates both directly and through local distributors has been able to offset the revenue contraction of the Chinese market, mainly due to the Volume-Based Procurement regulations. Net of the contribution of the Chinese market, the geographical area defined as “Rest of the World” registered a growth of +5%.

ADJUSTED1 GROSS PROFIT: € 406 million (equal to 66% of revenues), an increase of € 16 million compared to H1’24, confirming the previous year's results.

ADJUSTED1 EBITDA2: € 214 million (equal to 35% of revenues both at current and constant exchange rates), an increase of €16 million (+8% or + 10% at CER) compared to H1’24, with a higher incidence on revenues of about 100 bps at current and constant exchange rates. In Q2’25, growth equals to +6% vs. Q2’24 (+11% at CER), with EBITDA margin at 35% (almost 36% at CER). The increase in profitability was driven by a favorable product mix and contained growth in operating expenses, confirming the FY’25 guidance.

ADJUSTED1 EBIT: € 167 million (equal to 27% of revenues), an increase of € 14 million (+9%) vs. H1’24. Q2’25 registered a growth equal to +6% over the same period of 2024.

NET FINANCIAL EXPENSES € 7 million (€ 8 million in 2024); down from H1’24 mainly as a result of the fair value measurement of interest rate hedging financial instruments taken out for the acquisition of Luminex.

INCOME TAXES: € 33 million, with a tax rate of 25%.

ADJUSTED1 NET PROFIT: € 125 million (equal to 20% of revenues), an increase of € 5 million (+4%) vs. H1’24.

COMMENT ON FINANCIAL RESULTS

CONSOLIDATED NET FINANCIAL DEBT: -€ 683 million (-€ 618 million at December 31, 2024). The net financial position at the end of H1’25 shows a decrease of € 65 million, as a combined effect of the exercise of the withdrawal right by certain shareholders following the approval of the increased voting rights mechanism for € 97 million, the payment of dividends for € 63 million, and the operating cash flow generation during the period.

FREE CASH FLOW3: € 83 million at June 30, 2025 (€ 91 million at June 30, 2024). The year-on-year change is attributable to higher taxes paid in H1’25, primarily in the United States, compared to the same period of the previous year, which had benefited from prior-year tax credits.

BUSINESS HIGHLIGHTS

IMMUNODIAGNOSTICS:

-  510(k) clearance of the LIAISON® MUREX HIV Ab-Ag HT and LIAISON® MUREX Control HIV Ab-Ag HT.

MOLECULAR DIAGNOSTICS:

-  Submission of the molecular diagnostic Point-of-Care platform LIAISON NES® and its respiratory 4-plex panel (Flu A, Flu B, COVID, RSV) to the U.S. FDA for 510(k) clearance and CLIA Waiver;

-  Launch of the full panel portfolio to diagnose bloodstream infections on LIAISON PLEX®, the new multiplexing platform of the Group, following the U.S. FDA 510(k) clearance for the LIAISON PLEX® Gram-Positive Blood Culture Assay, LIAISON PLEX® Gram-Negative Blood Culture Assay, and LIAISON PLEX® Blood Culture Yeast Assay;

-  Launch of a new Measles Virus Primer Pair in the U.S., expanding the growing portfolio of Analyte-Specific Reagents (ASRs);

-  Launch of Simplexa™ C. auris direct assay on the LIAISON® MDX platform for all countries accepting the CE Mark.

OTHER BUSINESS HIGHLIGHTS

During H1 2025, Diasorin launched a project aimed at discontinuing industrial operations at its Dietzenbach (Germany) plant, as part of the ongoing strategic efforts to optimize the global footprint of its production sites and improve long-term competitiveness. The implementation of this initiative, which is expected to be completed by the end of 2026, will be carried out in compliance with the co-determination and employee participation rights provided for under German law. Once completed, the project is expected to generate operational synergies and annual cost savings estimated at approximately € 7 million. To implement the project, total non-recurring costs not exceeding € 15 million are expected to be incurred, which will be recognized in the consolidated financial statements for 2025 and 2026.

Regarding the introduction of new tariff measures that could potentially impact the Group’s business areas, as of today, taking into account the upcoming tariffs imposition and the mitigation measures already implemented, the estimated impact on the Group’s profitability for the current year is not expected to be material. Nonetheless, the Company will continue to closely monitor the implementing provisions of the announced tariff measures, any potential changes in the tariff framework, the related impacts on both the import and export of its products, and the procurement of raw materials used in its production processes.

FY 2025 GUIDANCE AT 2024 CER

The Company confirms FY 2025 guidance:

-  EX-COVID REVENUES: approx. +8%, approx. +7% including COVID revenues (equal to approx. € 20 million)

-  ADJUSTED1 EBITDA2 MARGIN: approx. 34%

Source: Revenue Growth And Margin Expansion in H1 2025