Financial Highlights
- Revenue from continuing operations of
US$21.7 million in the full year 2023, an increase of 65.2% as compared to the full year 2022. - Revenue from continuing operations of
US$5.4 million in the fourth quarter 2023, an increase of 90.8% as compared to the fourth quarter 2022. - Adjusted EBITDA from continuing operations of
US$(24.8) million in the full year 2023. - Adjusted EBITDA from continuing operations of
US$(6.2) million in the fourth quarter 2023. - Cash and other short-term assets1 of
US$93.7 million as ofDecember 31, 2023 . Additionally, Insighta2, our 50/50 joint venture in early cancer detection with ProfessorDennis Lo , had a cash balance ofUS$79.1 million in its balance sheet as ofDecember 31, 2023 .
With this significant turnaround, we are confidently revising our revenue projections for the full year 2024 to be in the range of
This past year also marked the completion of a pivotal 500-person clinical trial with Insighta, our early cancer detection venture with Prof.
In summary, 2023 was a testament to our commitment to executing our strategic objectives and operational excellence. Looking ahead to 2024, with a strong cash position, no debt, a dedicated management team and potentially large opportunities in consumer healthcare, we are poised to build on our momentum and delivering long-term value to our shareholders. Stay tuned as we continue this exciting journey, with transformative developments on the horizon."
Recent Highlights
- ACT Genomics and CircleDNA business units achieved EBITDA breakeven (non-IFRS) in
December 2023 , the first time in the Company’s history. - The two units are expected to generate a combined revenue in the range of
US$33 million toUS$36 million , up fromUS$21.7 million in 2023. - Insighta’s 500-participants clinical trial for early cancer detection has been completed and is preparing for publication of full results which is expected by the end of 2024.
- Our management team is diligently pursuing significant new ventures within the consumer healthcare market, with more information to be revealed in the upcoming period.
_____________________
1 Represents current assets, including cash and cash equivalents and short-term deposits totaling
2 As of
Full Year 2023 Financial Results
Total revenue from continuing operations for the full year of 2023 was
Adjusted net loss attributable to equity shareholders of
About
Investor Relations Contact:
investors@prenetics.com
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Basis of Presentation
Unaudited Non-IFRS Financial Measures has been provided in the financial statements tables included at the end of this press release. An explanation of these measures is also included below under the heading “Unaudited Non-IFRS Financial Measures”.
Unaudited Non-IFRS Financial Measures
To supplement Prenetics’ consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), the Company is providing non-IFRS measures, adjusted EBITDA from continuing operations, adjusted gross profit from continuing operations and adjusted (loss)/profit attributable to equity shareholders of
Management is excluding from some or all of its non-IFRS results (1) Employee equity-settled share-based payment expenses, (2) depreciation and amortization, (3) finance income and exchange gain or loss, net, and (4) certain items that may not be indicative of our business, results of operations, or outlook, including but not limited to non-cash and/ or non-recurring items. These non-IFRS financial measures are limited in value because they exclude certain items that may have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on an IFRS basis as well as a non-IFRS basis and also by providing IFRS measures in the Company's public disclosures.
In addition, other companies, including companies in the same industry, may not use the same non-IFRS measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-IFRS measures as comparative measures. Because of these limitations, the Company's non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the non-IFRS reconciliations provided in the tables captioned “Reconciliation of loss from operations from continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS)”, “Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS)” and “Reconciliation of (loss)/profit attributable to equity shareholders of
Unaudited consolidated statements of financial position
(Expressed in
2023 | 2022 | ||||
Assets | |||||
Property, plant and equipment | $ | 5,777,794 | $ | 13,102,546 | |
Intangible assets | 13,424,648 | 14,785,875 | |||
29,170,123 | 33,800,276 | ||||
Interests in equity-accounted investees | 98,464,875 | 788,472 | |||
Financial assets at fair value through profit or loss | 9,371,064 | — | |||
Deferred tax assets | 27,680 | 243,449 | |||
Deferred expenses | 3,530,756 | 6,307,834 | |||
Other non-current assets | 743,173 | 1,292,462 | |||
Non-current assets | 160,510,113 | 70,320,914 | |||
Deferred expenses | 8,312,890 | 4,577,255 | |||
Inventories | 3,126,776 | 4,534,072 | |||
Trade receivables | 4,058,007 | 41,691,913 | |||
Deposits, prepayments and other receivables | 5,284,848 | 6,889,114 | |||
Amount due from a related company | 5,123 | — | |||
Amount due from an equity-accounted investee | 132,114 | — | |||
Financial assets at fair value through profit or loss | 11,034,200 | 17,537,608 | |||
Short-term deposits | 16,000,000 | 19,920,160 | |||
Cash and cash equivalents | 45,706,448 | 146,660,195 | |||
Current assets | 93,660,406 | 241,810,317 | |||
Total assets | $ | 254,170,519 | $ | 312,131,231 | |
Liabilities | |||||
Deferred tax liabilities | $ | 2,614,823 | $ | 3,185,440 | |
Warrant liabilities | 223,850 | 3,574,885 | |||
Lease liabilities | 867,215 | 3,763,230 | |||
Other non-current liabilities | 823,345 | 949,701 | |||
Non-current liabilities | 4,529,233 | 11,473,256 | |||
Trade payables | 1,671,019 | 7,291,133 | |||
Accrued expenses and other current liabilities | 8,174,815 | 15,611,421 | |||
Contract liabilities | 6,111,017 | 5,674,290 | |||
Lease liabilities | 1,502,173 | 2,882,933 | |||
Liabilities for puttable financial instrument3 | 14,622,529 | 17,138,905 | |||
Tax payable | 7,402,461 | 8,596,433 | |||
Current liabilities | 39,484,014 | 57,195,115 | |||
Total liabilities | 44,013,247 | 68,668,371 | |||
Equity | |||||
Share capital4 | 18,308 | 13,698 | |||
Reserves | 206,339,490 | 237,050,429 | |||
Total equity attributable to equity shareholders of the Company | 206,357,798 | 237,064,127 | |||
Non-controlling interests | 3,799,474 | 6,398,733 | |||
Total equity | 210,157,272 | 243,462,860 | |||
Total equity and liabilities | $ | 254,170,519 | $ | 312,131,231 |
Unaudited consolidated statements of profit or loss and other comprehensive income
(Expressed in
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(Restated) | (Restated) | ||||||||||||||
Continuing operations | |||||||||||||||
Revenue | $ | 5,428,460 | $ | 2,844,571 | $ | 21,742,675 | $ | 13,163,841 | |||||||
Direct costs | (2,758,288 | ) | (1,765,186 | ) | (12,912,788 | ) | (9,545,546 | ) | |||||||
Gross profit | 2,670,172 | 1,079,385 | 8,829,887 | 3,618,295 | |||||||||||
Other income and other net gain | 715,562 | 818,043 | 4,507,103 | 429,857 | |||||||||||
Selling and distribution expenses5 | (1,908,415 | ) | (1,203,237 | ) | (8,243,379 | ) | (4,738,099 | ) | |||||||
Research and development expenses5 | (2,586,477 | ) | (1,463,036 | ) | (11,661,760 | ) | (5,988,905 | ) | |||||||
Impairment loss of goodwill | (3,900,268 | ) | — | (3,900,268 | ) | — | |||||||||
Administrative and other operating expenses5 | (10,362,374 | ) | (10,942,029 | ) | (41,438,301 | ) | (59,341,636 | ) | |||||||
Loss from operations | (15,371,800 | ) | (11,710,874 | ) | (51,906,718 | ) | (66,020,488 | ) | |||||||
Fair value loss on financial assets at fair value through profit or loss | (3,190,379 | ) | (7,689,311 | ) | (7,134,786 | ) | (9,363,495 | ) | |||||||
Share-based payment on listing6 | — | — | — | (89,546,601 | ) | ||||||||||
Fair value loss on preference shares liabilities | — | — | — | (60,091,353 | ) | ||||||||||
Fair value gain on warrant liabilities | 671,550 | 6,498,365 | 3,351,035 | 3,196,538 | |||||||||||
Share of loss of equity-accounted investees | (688,183 | ) | — | (858,900 | ) | — | |||||||||
Other finance costs | 1,073 | (51,014 | ) | (119,662 | ) | (3,994,755 | ) | ||||||||
Loss before taxation | (18,577,739 | ) | (12,952,834 | ) | (56,669,031 | ) | (225,820,154 | ) | |||||||
Income tax (expense)/credit | (10,678 | ) | (150,282 | ) | 269,359 | 244,816 | |||||||||
Loss from continuing operations | (18,588,417 | ) | (13,103,116 | ) | (56,399,672 | ) | (225,575,338 | ) | |||||||
Discontinued operation | |||||||||||||||
(Loss)/profit from discontinued operation, net of tax7 | (1,026,983 | ) | 14,711,059 | (8,377,660 | ) | 35,121,951 | |||||||||
(Loss)/profit for the period/year | (19,615,400 | ) | 1,607,943 | (64,777,332 | ) | (190,453,387 | ) | ||||||||
Other comprehensive income for the period/year | |||||||||||||||
Item that may be reclassified subsequently to profit or loss: | |||||||||||||||
Exchange difference on translation of foreign operations | 1,118,149 | 2,759,672 | 1,795,623 | (4,842,932 | ) | ||||||||||
Total comprehensive income for the period/year | $ | (18,497,251 | ) | $ | 4,367,615 | $ | (62,981,709 | ) | $ | (195,296,319 | ) | ||||
(Loss)/profit attributable to: | |||||||||||||||
Equity shareholders of | $ | (19,047,124 | ) | $ | 1,607,942 | $ | (62,723,871 | ) | $ | (190,453,333 | ) | ||||
Non-controlling interests | (568,276 | ) | 1 | (2,053,461 | ) | (54 | ) | ||||||||
$ | (19,615,400 | ) | $ | 1,607,943 | $ | (64,777,332 | ) | $ | (190,453,387 | ) | |||||
Total comprehensive income attributable to: | |||||||||||||||
Equity shareholders of | $ | (18,677,610 | ) | $ | 4,367,614 | $ | (61,112,335 | ) | $ | (195,296,265 | ) | ||||
Non-controlling interests | 180,359 | 1 | (1,869,374 | ) | (54 | ) | |||||||||
$ | (18,497,251 | ) | $ | 4,367,615 | $ | (62,981,709 | ) | $ | (195,296,319 | ) | |||||
(Loss)/earnings per share: | |||||||||||||||
Basic | $ | (1.57 | ) | $ | 0.21 | $ | (5.58 | ) | $ | (37.57 | ) | ||||
Diluted | (1.57 | ) | 0.21 | (5.58 | ) | (37.57 | ) | ||||||||
Loss per share - Continuing operations: | |||||||||||||||
Basic | (1.49 | ) | (2.07 | ) | (4.83 | ) | (44.50 | ) | |||||||
Diluted | (1.49 | ) | (2.07 | ) | (4.83 | ) | (44.50 | ) | |||||||
Weighted average number of common shares: | |||||||||||||||
Basic | 12,114,922 | 7,692,436 | 11,246,010 | 5,069,315 | |||||||||||
Diluted | 12,114,922 | 7,692,436 | 11,246,010 | 5,069,315 |
Unaudited Non-IFRS Financial Measures
(Expressed in
Reconciliation of loss from operationsfrom continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS)
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(Restated) | (Restated) | ||||||||||||||
Loss from operations from continuing operations under IFRS | $ | (15,371,800 | ) | $ | (11,710,874 | ) | $ | (51,906,718 | ) | $ | (66,020,488 | ) | |||
Employee equity-settled share-based payment expenses | 2,055,858 | 3,557,088 | 10,588,944 | 26,154,915 | |||||||||||
Depreciation and amortization | 1,564,816 | 526,005 | 6,671,022 | 2,076,858 | |||||||||||
Other strategic financing, transactional expense and non-recurring expenses | 6,263,188 | 2,647,418 | 14,081,833 | 14,130,281 | |||||||||||
Finance income, exchange gain or loss, net | (673,740 | ) | (419,881 | ) | (4,253,472 | ) | 191,126 | ||||||||
Adjusted EBITDA from continuing operations (Non-IFRS) | $ | (6,161,678 | ) | $ | (5,400,244 | ) | $ | (24,818,391 | ) | $ | (23,467,308 | ) |
Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS)
Three Months Ended | Year Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
(Restated) | (Restated) | ||||||||||
Gross profit from continuing operations under IFRS | $ | 2,684,103 | $ | 1,079,385 | $ | 8,843,818 | $ | 3,618,295 | |||
Employee equity-settled share-based payment expenses | 11,522 | — | 11,522 | — | |||||||
Depreciation and amortization | 309,812 | 188,154 | 1,435,709 | 501,786 | |||||||
Adjusted gross profit from continuing operations (Non-IFRS) | $ | 3,005,437 | $ | 1,267,539 | $ | 10,291,049 | $ | 4,120,081 |
Reconciliation of (loss)/profit attributable to equity shareholders of
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(Restated) | (Restated) | ||||||||||||||
(Loss)/profit attributable to equity shareholders of | $ | (19,047,124 | ) | $ | 1,607,942 | $ | (62,723,871 | ) | $ | (190,453,333 | ) | ||||
Employee equity-settled share-based payment expenses | 2,055,858 | 3,241,872 | 10,588,944 | 31,580,384 | |||||||||||
Other strategic financing, transactional expense and non-recurring expenses | 8,248,151 | 1,269,453 | 19,984,232 | 13,675,709 | |||||||||||
Share-based payment on listing | — | — | — | 89,546,601 | |||||||||||
Fair value loss on preference shares liabilities | — | — | — | 60,091,353 | |||||||||||
Fair value gain on warrant liabilities | (671,550 | ) | (6,498,365 | ) | (3,351,035 | ) | (3,196,538 | ) | |||||||
Fair value loss on financial assets at fair value through profit or loss | 3,190,379 | 7,689,311 | 7,134,786 | 9,363,495 | |||||||||||
Restructuring costs | — | 2,709,143 | — | 30,378,741 | |||||||||||
Adjusted (loss)/profit attributable to equity shareholders of | $ | (6,224,286 | ) | $ | 10,019,356 | $ | (28,366,944 | ) | $ | 40,986,412 |
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3 In connection with the acquisition of ACT Genomics, the remaining shareholders of ACT Genomics - representing 25.61% of the fully diluted shareholding of ACT Genomics that
4 Represents number of authorized and issued shares as follows:
2023 | 2022 | ||
Number of authorized shares of | 33,333,333 | 500,000,000 | |
Number of issued shares | 12,205,200 | 136,983,110 |
5 Includes equity-settled share-based payment expenses (excluding share-based payment on listing) from continuing operations as follows:
Three Months Ended | Year Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Restated) | (Restated) | |||||||||||
Direct costs | $ | 11,522 | $ | — | $ | 11,522 | $ | — | ||||
Selling and distribution expenses | (632 | ) | 43,257 | 99,929 | 122,910 | |||||||
Research and development expenses | 675,928 | 321,235 | 2,812,174 | 1,980,010 | ||||||||
Administrative and other operating expenses | 1,339,419 | 3,152,921 | 7,572,081 | 23,810,797 | ||||||||
Total equity-settled share-based payment expenses (excluding share-based payment on listing) | $ | 2,026,237 | $ | 3,517,413 | $ | 10,495,706 | $ | 25,913,717 |
6 The acquisition of the net assets of
7 We ceased our COVID-19 testing business entirely in 2023 Q2, and other DNA testing operations in the EMEA regions in 2023 Q4. As a result, COVID-19 testing business and the operations in the EMEA regions are reported as a discontinued operation under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. In accordance with IFRS 5, the results of the discontinued operation have been presented separately from the continuing operations in the consolidated statements of profit or loss and other comprehensive income. The comparative information in the consolidated statements of profit or loss and other comprehensive income has also been re-presented to show the results of discontinued operation separately.
Source:
2024 GlobeNewswire, Inc., source