Abcam Provides FY24 Guidance & Confirms FY23 Outlook

Abcam PLC ABCM provided an FY24 outlook and reaffirmed FY23 guidance. 

FY24 Guidance: The company expects reported revenue of approximately £475 million to £525 million, representing a constant exchange rate (CER) CAGR of 11.3% to 13.4% and organic CAGR of 10.0% to 12.1% vs. FY19.

ABCM projects adjusted operating profit margins in the 32% to 36% range and adjusted EBITDA margins of 42% and 46%, including the ongoing cost improvement initiatives announced last month.

Notably, the company disclosed incremental cost refinement initiatives earlier last month, expecting to reduce annualized run rate operating expenses by over £15 million by 2024. 

The company anticipates reported ROCE of 14% to 18% and ROCE, excluding the impact of BioVision, of 15% to 19% in FY24, with incremental value expected in the coming years.

FY23 Outlook Reaffirmed: Abcam continues to expect revenues of around £420 million to £440 million, representing CER growth of 15% to 20%.

Also, the company reiterated its outlook for an adjusted operating profit margin of 27% to 28% and adjusted EBITDA margins in the 36.5% to 37% range. 

Last week, Abcam announced that its Board of Directors unanimously decided to initiate a process to explore strategic alternatives.

Also Read: Abcam Downgrade: Analyst Trims Expectations Amid Activist Investor Engagement and Potential Bid Anticipation

Price Action: ABCM shares closed lower by 2.09% at $22.49 on Monday.