Selvita (WSE: SLV) – one of the largest preclinical contract research organizations in Europe continues its dynamic development. Following the acquisition of Fidelta, Selvita Group achieved in the three quarters of 2021 over a two-fold increase in sales revenue comparing to the corresponding period of the previous year.
Increase in the scale of operations along with a very good margin
Selvita Group continued dynamic development in each segment of its activity. Commercial revenues from services executed in Poland amounted to EUR 22.8 million and were 23% higher compared to the three quarters of 2020, when these amounted to EUR 19.1 million. In the third quarter alone, those revenues increased by as much as 32% y/y to EUR 8.5 million. Such dynamic growth is the result of developments in the area of drug discovery services and stabilization of the regulatory studies market.
Fidelta, representing the segment of services executed in Croatia, recorded EUR 20.0 million in revenues from clients in the first three quarters of 2021, with EBITDA of EUR 6.1 million (30.5% margin). In the third quarter of 2021, Fidelta achieved EUR 7.0 million in sales revenues (an increase of 34% y/y), and EBITDA of EUR 2.2 million (a margin of 31.4%).
The bioinformatics segment (Ardigen) closed the three quarters of 2021 with EUR 4.8 million in revenue from clients, as compared to EUR 2.8 million, in the corresponding period of 2020, indicating an increase of 72% EBITDA amounted to EUR 1.2 million (23.8% margin) and was 53% higher than in the previous year. In the third quarter of 2021 alone, revenues from clients amounted to EUR 1.9 million (an increase of 57% y/y), and EBITDA of EUR 0.6 million (a margin of 31.4%).
The reported period highlights a continued growth of services’ sales on foreign markets. With the acquisition of Fidelta, we observe a significant increase in revenues from sales to the customers in the EU and Switzerland, where the Croatian company generates most of its revenues. At the same time, the continued organic development of Selvita and Ardigen was responsible for the significant increase in revenues from sales to the customers in the United States and United Kingdom.
After three quarters of 2021, revenues from the U.S., the most competitive market in the world, increased by 89% y/y and amounted to EUR 13.5 million. Selvita Group also recorded a significant increase in sales revenues in the U.K., which rose by 128% y/y.
– The first nine months of 2021 were an intense period for us. Since the beginning of the year, we have been working on integration of Selvita and Fidelta services’ offer. We want to make the most of the experience and capabilities that we gained as a result of Fidelta’s acquisition, in order to further develop the Group’s portfolio of services.
We are satisfied with the financial results achieved in all business segments. In the third quarter, revenues from services executed in Poland increased by 32% y/y, Fidelta maintains high profitability, and Ardigen maintains the highest growth dynamics in the Group – comments Bogusław Sieczkowski, co-founder, significant shareholder and Chief Executive Officer of Selvita.
In order to ensure the continued dynamic development of the Company in the coming years, we are constantly strengthening our team and investing in research infrastructure. In July this year, we have initiated the construction of Selvita Research Center in Krakow, at the same time, the adaptation of an additional over 2 000 sq m in Zagreb is close to completion, and we also plan to increase the space in our current locations in Krakow and Poznan. We continue to strengthen our research and sales teams because we are convinced that the best employees are key to our success and further development.
Strong growth in contracting across all business segments allows us to be optimistic about the future. We have no intention to slow down and plan to continue to grow organically, as well as through acquisitions, adds Sieczkowski.
Selvita Group’s backlog for 2021 currently sums up to EUR 65.1 million, which indicates an increase of 22% y/y, including the organic backlog (excl. Fidelta) which grew by 29% compared to the same period last year.
