Bioton's 3Q23 Financial Performance: Below Expectations with Production Downtime Impact

Bioton – (Last valuation: 5.41 PLN/share as of 19.09.2023) 3Q23 results - below our expectations, slightly negative

Revenues in 3Q23 amounted to PLN 50.7 million (vs. PLN 50 million of our forecast), EBIT amounted to PLN -2 million (vs. PLN -1 million of our forecast), and EBITDA amounted to PLN 3.9 million (vs. PLN 10.6 million - we assumed depreciation and amortization at PLN 11.5 million, and in the end it turned out to be much lower at PLN 5.9 million), net result amounted to PLN -4.4 million (vs. PLN -2.9 million of our forecast).

In line with our expectations, Q3 2022 was a high base both in terms of revenue and margins - the company made more export sales with higher profitability during this period. The result on the operating level in 3Q23 was further supported by a positive balance on other operating activities of +3.8 million PLN. Adjusted for this factor, the operating result in 3Q23 was PLN -5.8 million.

The company additionally pointed to the negative impact of production downtime on profitability. In a management commentary, the company said it had called on Yifan to pay PLN 8.8 million for work done on the Glargine project, including the cost of the API plant shutdown during its modification. We view the results slightly negatively.

 

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