Evotec reported a strong set of Q1/2020 results, with revenues increasing 15% YoY vs. Q1/19 to €119.4m supported by growth in the base business for both the EVT Execute and EVT Innovate segments. Base revenue growth more than offset a lower contribution from milestones, upfront payments, and licenses (€5.4m Q1/2020 vs. €10.1m Q1/2019) with Evotec maintaining a stable adjusted EBITDA of €30m (Q1/2019: €30m). Despite the ongoing global pandemic, all Evotec sites have been able to continue operations during the first quarter, maintaining a capacity at more than 90% of total throughout. Evotec has maintained its 2020 outlook, relayed in April 2020, confirming that the company continues to expect little impact moving forward at this time. We continue to believe that Evotec remains a structural growth story in the mid to long term and maintain the opinion that the company will weather Covid-19 with minimal disruption. We reiterate both our OUTPERFORM recommendation and €28 target price.
15 May 2020
Evotec - Q1/2020 results review
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Evotec - Q1/2020 results review
Evotec SE (EVT:WBO) | 0 0 0.7% | Mkt Cap: 2,149m
- Published:
15 May 2020 -
Author:
Chris Redhead -
Pages:
5
Evotec reported a strong set of Q1/2020 results, with revenues increasing 15% YoY vs. Q1/19 to €119.4m supported by growth in the base business for both the EVT Execute and EVT Innovate segments. Base revenue growth more than offset a lower contribution from milestones, upfront payments, and licenses (€5.4m Q1/2020 vs. €10.1m Q1/2019) with Evotec maintaining a stable adjusted EBITDA of €30m (Q1/2019: €30m). Despite the ongoing global pandemic, all Evotec sites have been able to continue operations during the first quarter, maintaining a capacity at more than 90% of total throughout. Evotec has maintained its 2020 outlook, relayed in April 2020, confirming that the company continues to expect little impact moving forward at this time. We continue to believe that Evotec remains a structural growth story in the mid to long term and maintain the opinion that the company will weather Covid-19 with minimal disruption. We reiterate both our OUTPERFORM recommendation and €28 target price.