Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into the impact of the US academic and government accounts on your 2024 revenues? A: Achim Von Leoprechting, CEO: In 2024, US academic and government accounts represented about 5% to 6% of our revenues, translating to approximately CHF50 million. This was split between our life sciences and partnering business divisions. The uncertainty in these accounts has affected our order patterns, and we are working to understand the implications for 2025.
Q: How did your largest customer perform in 2024, and what are your expectations for 2025? A: Achim Von Leoprechting, CEO: In 2024, sales to our largest customer were around CHF170 million, 16% above 2022 levels. The decline in 2024 was due to normalized demand patterns and a model transition. For 2025, we expect stable sales levels, and we anticipate significant growth in the future due to our strong relationship and preferred supplier status.
Q: What is your outlook for the biopharma segment in 2025? A: Achim Von Leoprechting, CEO: We expect a gradual improvement in biopharma throughout 2025. The segment has been impacted by strategic shifts and political decisions, but we are seeing increased engagement from pharma companies for automation systems. AI-driven drug discovery and humanized disease models present growth opportunities for us.
Q: Can you elaborate on the impact of the NIH budget developments on your business? A: Achim Von Leoprechting, CEO: The NIH budget reductions and overall budget uncertainty in US academic and governmental accounts could significantly impact our revenues. We expect consumables and service sales to continue normally, but equipment sales may be affected. Our guidance accounts for these uncertainties.
Q: How did the cost reduction measures impact your financial performance in 2024, and what are your expectations for 2025? A: Tania Micki, CFO: In 2024, we implemented cost reduction measures that started showing impact in the second half, contributing to a better-than-expected earnings performance. For 2025, we expect annualized savings of around CHF10 million, with additional efficiency improvements planned.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.