Solid progress in H1 2024 – Upgrade of 2024 full year guidance – Mid term target to double 2023 revenue by 2028

Baar, 13 August 2024 - PolyPeptide Group AG (SIX: PPGN), a focused global CDMO for peptide-based active pharmaceutical ingredients, today announced its results for H1 2024, upgraded guidance for 2024 and mid-term outlook:

• Revenue of EUR 135.0 million, +2.4% versus H1 2023 or +2.9% at constant currency rates, driven by commercial activities
• EBITDA of EUR 2.9 million versus EUR -19.4 million with operational improvements leading to a higher utilization and favorable product mix
• Capex of EUR 20.5 million or 15.2% of revenue (14.7% in H1 2023); advancing capacity expansion projects in Belgium, Sweden, France and the United States; large-scale SPPS capacity on track for production ramp-up to start during H2 2024
• Upgrade of guidance for the full year 2024: now expecting high single-digit revenue growth versus 2023 at constant currency rates with positive mid single-digit EBITDA margin, operating at a net loss
• Sharpened growth strategy, taking into consideration large commercial agreements communicated in December 2022 and March 2024, as well as exposure in fast growing therapeutic areas, particularly the emerging GLP-1 market
• New mid-term outlook: target to double revenue reported for 2023 by 2028; revenue growth projections supported by commitments and supply forecasts of existing customers
• EBITDA margin expected to approach 25% by 2028, driven by growth initiatives, improving profitability in the existing base business with higher asset utilization and efficiency as well as operating leverage
• Advanced capacity expansion roadmap, focusing on the potential for modular solutions with plan to build additional capacity in phases, linked to customer projects
• Capital expenditures of 15% to 20% of revenue required to ensure capacity also beyond 2028
• Audio webcast and conference call will take place today at 9:30 am CEST

Juan José González, CEO of PolyPeptide: "We made solid progress during H1 2024 with improved profitability and cash flow. In parallel, we undertook further transformational steps to strengthen our organization with additional industrial-scale manufacturing and commercial capabilities. We sharpened our growth strategy to be the most innovative peptides CDMO. The signing of the large commercial agreements communicated earlier anchors the new mid-term outlook: we now target to double revenue reported for 2023 by 2028 with the EBITDA margin approaching 25%."

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