On October 26, 2023, Bio-Rad Laboratories Inc (BIO, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a decrease in total net sales and a significant increase in net income compared to the same period in 2022.
Financial Performance
Third-quarter 2023 total net sales were $632.1 million, a decrease of 7.1 percent compared to $680.8 million reported for the third quarter of 2022. On a currency-neutral basis, quarterly sales decreased 7.9 percent compared to the same period in 2022. COVID-related sales were approximately $0.3 million in the third quarter of 2023 versus approximately $17.2 million in the year ago period. Excluding COVID-related sales, revenue decreased 5.5 percent on a currency-neutral basis.
Segment Performance
Life Science segment net sales for the third quarter were $263.5 million, a decrease of 17.1 percent compared to the same period in 2022. On a currency-neutral basis, Life Science segment sales decreased by 17.8 percent compared to the same quarter in 2022. Excluding COVID-related sales, Life Science revenue decreased 13.7 percent.
Clinical Diagnostics segment net sales for the third quarter were $368.1 million, an increase of 1.7 percent compared to the same period in 2022. On a currency-neutral basis, net sales increased 1.0 percent versus the same quarter last year. Excluding COVID-related sales, Clinical Diagnostics revenue increased 1.4 percent year over year, on a currency-neutral basis.
Income and Net Income
Income from operations during the third quarter of 2023 was $90.9 million versus $94.6 million during the same quarter last year. Net income for the third quarter of 2023 was $106.3 million, or $3.64 per share, on a diluted basis, versus a net loss of $162.8 million, or $5.48 per share, on a diluted basis, during the same period in 2022.
CEO Commentary
“Our third quarter results came in below our expectations and were primarily impacted by further deterioration in biopharma and early biotech customer spending, as well as a challenging macroeconomic environment in China,” said Norman Schwartz, Bio-Rad’s President and Chief Executive Officer. “Given the uncertain pace of the biopharma sector’s recovery and the ongoing macro challenges, we are lowering our full-year 2023 outlook but remain confident about our overall strategy framework and long-term market opportunities.”
Updated 2023 Financial Outlook
Bio-Rad is updating its financial outlook for full-year 2023. The company currently expects its non-GAAP revenue to decline by approximately 3.5 percent on a currency-neutral basis compared to its previous estimate of a 0.8 percent revenue growth. Bio-Rad also estimates a non-GAAP operating margin of about 14.5 percent versus the company’s prior estimate of approximately 16 percent.
Explore the complete 8-K earnings release (here) from Bio-Rad Laboratories Inc for further details.
