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BNN — BRAIN Biotech AG News Story

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Germany's BRAIN Biotech 9M revenue falls 10.5% on core unit weakness

Germany's BRAIN Biotech 9M revenue falls 10.5% on core unit weakness


Overview

  • Germany specialty enzymes provider's 9M revenue fell 10.5% yr/yr to €34.6 mln

  • Adjusted EBITDA for 9M declined to €-0.7 mln, mainly due to lower group revenues

  • Company cut outlook for BRAINBiocatalysts, raised forecast for BRAINBioIncubator segment


Outlook

  • BRAIN Biotech lowers forecast for BRAINBiocatalysts segment, now seeing revenue below prior-year level

  • Company expects BRAINBiocatalysts segment EBITDA margin below 10% for the year

  • BRAIN Biotech raises BRAINBioIncubator segment revenue forecast to around €6.0 mln, EBITDA at least €1.0 mln


Result Drivers

  • CORE SEGMENT WEAKNESS - Revenue decline driven by lower sales in BRAINBiocatalysts, especially baking enzymes, and production interruptions from facility relocation

  • MILESTONE PAYMENT IMPACT - BRAINBioIncubator segment benefited from a €1 mln milestone payment for the deucrictibant project, boosting revenue and margins

  • COST DISCIPLINE - Strict cost controls helped offset a larger negative earnings impact from lower revenue


Company press release: ID:nEQ51khHXa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

EUR 34.60 mln

9M Adjusted EBITDA

-EUR 700,000

9M EBITDA

-EUR 2 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy."

  • Wall Street's median 12-month price target for BRAIN Biotech AG is €5.00, about 78.6% above its August 26 closing price of €2.80


Reuters Recommended Reads

  • Aug 26 - German government cost cutting and red tape drive research abroad, chemical lobby says

  • Aug 26 - Germany's elumeo H1 revenue falls; EBITDA turns positive on cost cutting

  • Aug 25 - Molecular Partners H1 net loss narrows on lower R&D expenses


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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