Evotec Cuts 2023 Guidance Due To Impact Of Cyber-attack

Evotec SE (EVO) said that it cut its guidance for the fiscal year 2023 due to the impact of the cyber-attack.

The company lowered its annual group revenues to a range of 750 million euros – 790 million euros from the prior estimation of 820 million euros – 840 million euros.

The company now projects annual adjusted EBITDA to be between 60 million euros and 80 million euros compared to the previous outlook of 115 million euros – 130 million euros.

A strong start to the year with revenues exceeding 210 million euros and more than 30% revenue growth in the first quarter of 2023 proves that underlying business dynamics in a challenging environment are intact.

However, due to the discovery of a criminal cyber-attack on 6 April 2023, productivity was affected throughout the entire second quarter. The company re-started operations at the end of April with productivity reaching about 50% in May and more than 80% in June.

Revenues for the first six months are expected to exceed 370 million euros. Due the nature of Evotec’s collaborations with often long-term contracts, parts of missed revenues of at least 70 million euros (net) – but not all – are expected to be recoverable still in the second-half of 2023. Overall market circumstances are not expected to improve for the remainder of 2023.

While one-off items exceeding 90 million euros are affecting the outlook for 2023, additional optimization measures are set to unfold their positive impact over to course of 2024 and beyond. Action Plan 2025 stays unchanged, targeting revenues of more than 1 billion euros and an adjusted EBITDA of more than 300 million euros.

Source: Read Full Article