PolyPeptide Group Ltd

Latest Results (07.03.2026):

PolyPeptide Group Ltd — Q4 2024 (reporting full‑year 2024 results). For the year ended 31 December 2024 PolyPeptide reported revenue of EUR 336.8m (+5.1% vs 2023), a return to positive EBITDA of EUR 25.4m (7.5% margin) and an improved net result of EUR -19.6m. The group generated strong operating cash flow (EUR 89.4m) while investing heavily in capacity (capex EUR 87.8m, 26.1% of revenue). Management reiterates a mid‑term target to double 2023 revenue by 2028 and expects 2025 revenue growth of 10–20% with elevated capex funded in part by customer support.

Revenue mix and pipeline

Revenue: EUR 336.8m (+5.1% y/y; +7.1% excluding 2023 COVID‑related sales). Commercial revenue rose 31.8% while development revenue fell 23.5%. Metabolic therapeutics represented 40% of sales and oncology 17%. Active custom projects at year‑end: 201 projects (32 in Phase III).

Profitability recovery

EBITDA improved to EUR 25.4m (7.5% margin) versus EBITDA of EUR -6.0m in 2023 (an improvement of ~EUR 31.3m), driven by operational gains and a more favorable product mix. EBIT was EUR -7.4m (vs -36.5m in 2023); net result improved to EUR -19.6m (vs -51.4m).

Cash flow, liquidity and balance sheet

Operating cash flow: EUR 89.4m (2023: EUR 36.5m). Free cash flow: EUR 2.4m. Year‑end cash: EUR 68.3m (down from EUR 95.7m). Inventories rose by EUR 17.0m; contract liabilities showed net inflows of EUR 89.9m reflecting customer pre‑payments. EUR 30m remains outstanding under a short‑term shareholder facility; EUR 61m available under a EUR 111m committed RCF.

Capex and capacity expansion

Capital expenditure: EUR 87.8m (26.1% of revenue) as Group ramps industrial SPPS capacity. Key developments: production started at large‑scale SPPS site in Braine‑l’Alleud (Belgium); Torrance (CA) upstream/downstream debottlenecked; construction to double SPPS in Strasbourg (France) expected online end‑2025; Malmö (Sweden) SPPS doubling construction launched (c. EUR 100m planned investment).

Guidance and mid‑term targets

2025 guidance: expected revenue growth of 10–20% (subject to ramp of new commercial production) and continued EBITDA margin improvement, with capex around 20% of revenue. Mid‑term target: double 2023 revenue by 2028 and approach an EBITDA margin of ~25% by 2028. No dividend proposed for AGM 2025 while investing in growth.

Sustainability and governance

PolyPeptide finalized a climate strategy and will submit GHG reduction targets to SBTi in 2025. Near‑term targets: reduce Scope 1 & 2 emissions by 42% by 2030 vs 2023; Scope 3 intensity target -61% by 2033 vs 2022. CDP score improved to “B” in 2024. The Board and committees have reinforced ESG oversight and the company is preparing CSRD/ESRS disclosures for 2025.

Key financial ratios and risks to monitor

Equity ratio at year‑end 47.2% (down from 55.3%); capital intensity and working capital rose due to heavy capex and inventory build. Management is relying on customer pre‑payments, credit facilities and improved operating cash flow to fund expansion. Execution risk on modular capacity projects, ramp timing and solvent/complexity shifts in product mix remain key operational and financial risks.