On May 26, 2021 Selvita (WSE: SLV) – one of the largest preclinical contract research organizations in Europe, reported today EUR 15.5 million of consolidated revenues in Q1 2021, which constitutes a 128% increase compared to the value reported a year ago (Press release, Selvita, MAY 26, 2021, View Source;utm_medium=rss&utm_campaign=selvita-group-reports-over-a-two-fold-increase-in-revenues-for-q1-2021 [SID1234580593]). Selvita Group’s EBITDA result and net profit amounted to, respectively, EUR 3.9 million, and EUR 2.2 million, comparing to EUR 1.7 million and EUR 0.8 million, for a corresponding period last year. It was the first reporting period where the results include the Croatian company Fidelta acquired from Galapagos.
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Strong growth fueled by Fidelta’s consolidation along with organic growth
Commercial revenues relating to services executed both in Poland and Croatia, increased by 144%, reaching the value of EUR 13.5 million. Commercial revenues in Services executed in Poland amounted to EUR 7.0 million, showing a 26% increase, as compared to EUR 5.8 million achieved in the corresponding period of 2020.
Selvita’s Bioinformatics segment – Ardigen S.A., continues its dynamic growth after the record-breaking 2020. Ardigen’s commercial revenues increased by 117% y/y and amounted to EUR 1.4 million. EBITDA amounted to EUR 0.4 million, showing a 226% y/y increase and a 26.3% margin.
In Q1 2021, Selvita dynamically developed its international sales. Revenues from services from the most significant market, i.e., the United States, increased by 58% y/y and already constitute 33% of the revenues from the Services executed in Poland. Increasing customer recognition related to the high quality of services and expertise, strengthen Selvita’s position on the largest global biotechnology markets and results in further contracts.
After the breakthrough events of 2020, 2021 has also started in a very promising and positive way. From the very beginning of the year, we have been working together with Fidelta to strengthen the position of Selvita Group among global CRO companies. I am delighted with the good financial results achieved by our Croatian company. Business activities executed in Poland also experienced dynamic growth, both in the laboratory services and bioinformatics areas. We are optimistic about the subsequent quarters of 2021 – comments Bogusław Sieczkowski, Chief Executive Officer at Selvita.
Selvita Group’s backlog for 2021 currently amounts to EUR 43.5 million, showing an increase of 108%, as compared to compared to EUR 21.8 million in the corresponding period of 2020.
On the path for further development
Selvita Group has been consistently fulfilling the assumptions of the Development Strategy for 2020-2023 which assumed further organic growth supported with acquisitions.
After the acquisition of Fidelta, the Group’s revenues in Q1 2021 have more than doubled as compared to the previous year. This is the joint result of solid financial results of the Croatian company and the increased scale of operations of the companies based in Poland. It clearly shows that the Group can continue its dynamic development thanks to acquisitions, along with a consistent organic growth.
Selvita is becoming more recognizable and is strengthening its position not only among customers but also on the capital market. On March 19, 2021, the company was included in the mWIG40 index, a group of 40 leading mid-cap companies listed on the Warsaw Stock Exchange. This has contributed to expansion of the investor base for whom Selvita may be an interesting investment asset.
On March 16, Selvita was named the Stock Company of the Year 2020 in a competition organized by Puls Biznesu, one of the largest business daily publication in Poland. In addition to the main ranking, capital market professionals awarded Selvita in the categories: "The Management Board Competencies" and "Development Perspectives."
Significant milestones before the report date
One of the key elements of the development strategy is securing its own research space. In April 2021, Selvita has obtained a building permit for the construction of a 4,000 m2 Selvita Research Center in Krakow and raised the funding for the investment, which includes a EUR 9.3 million grant and a bank loan.
In May 2021, the Extraordinary General Shareholders Meeting of the Company, by resolution, adopted a non-diluting incentive program based on the existing shares of its main shareholder, Paweł Przewięźlikowski. The program will cover all employees of Selvita, which distinguishes it from among the existing incentive programs ever announced by Warsaw Stock Exchange stock listed companies. In Selvita’s opinion, the program is a very strong foundation for its further long-term development and an increase in shareholder value.