On August 26, 2024, Lifecore Biomedical Inc (LFCR, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year 2024. Lifecore Biomedical Inc is a fully integrated contract development and manufacturing organization (CDMO) that offers differentiated capabilities in the development, filling, and finishing of complex sterile injectable pharmaceutical products in syringes and vials. It manufactures injectable-grade Hyaluronic Acid and recognizes revenue in two different product categories: CDMO and fermentation.
Fiscal Year 2024 Financial Highlights
Lifecore Biomedical Inc (LFCR, Financial) reported a strong fiscal year 2024 with revenues of $128.3 million, marking a 24.2% increase year-over-year. The company also achieved a gross profit of $41.9 million, up by 49.5% from the previous year. Net income from continuing operations was $9.3 million, a significant turnaround from a net loss of $64.2 million in fiscal year 2023. Adjusted EBITDA for the year was $20.2 million, an 82.2% increase from the prior year.
Fourth Quarter 2024 Financial Highlights
For the fourth quarter of fiscal 2024, Lifecore Biomedical Inc (LFCR, Financial) reported revenues of $37.9 million, a 21.6% increase year-over-year. The gross profit for the quarter was $17.3 million, up by 122.0% from the same period last year. The net loss from continuing operations was $7.1 million, a significant improvement from a net loss of $37.0 million in the prior year period. Adjusted EBITDA for the quarter was $10.4 million, an increase of 180.1% year-over-year.
Performance Analysis
The revenue growth in both the fourth quarter and the full fiscal year was primarily driven by increased demand in Lifecore's hyaluronic acid (HA) raw material manufacturing (fermentation) business and its CDMO business. The HA raw material manufacturing revenue saw a 21.2% increase in the fourth quarter and an 18% increase for the full year, primarily due to higher demand from existing customers. The CDMO business experienced a 21.8% increase in the fourth quarter and a 27% increase for the full year, driven by new commercial launches and revised contract negotiations.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | Change (%) |
|---|---|---|---|
| Revenues | $37.9 million | $31.1 million | 21.6% |
| Gross Profit | $17.3 million | $7.8 million | 122.0% |
| Net Loss from Continuing Operations | $(7.1) million | $(37.0) million | 80.8% |
| Adjusted EBITDA | $10.4 million | $3.7 million | 180.1% |
Corporate Developments and Strategic Initiatives
Lifecore Biomedical Inc (LFCR, Financial) has made significant strides in expanding its capabilities and capacity. The company expects its new 5-head isolator filler to be GMP-ready in September 2024, which will more than double its current theoretical capacity. Additionally, Lifecore has added resources to its business development team and increased marketing spend to expand its reach into key pharmaceutical and biotech regions.
Commentary from Leadership
"Operationally, fiscal 2024 was a strong year for the Company as we recorded $128.3 million in revenues, representing a 24.2% increase over fiscal 2023," stated Paul Josephs, president & chief executive officer of Lifecore. "We are exceedingly pleased with this performance and top line growth. I am proud of the progress made by the Company to overcome its recent challenges and very pleased to have submitted our fiscal 2024 10-K today, bringing us current with all SEC filings."
Outlook for Fiscal 2025
Lifecore Biomedical Inc (LFCR, Financial) has provided guidance for fiscal year 2025, expecting revenues to be in the range of $126.5 million to $130 million and adjusted EBITDA to be between $19 million and $21 million. Capital expenditures are anticipated to be in the range of $10 million to $14 million, excluding capitalized interest.
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Explore the complete 8-K earnings release (here) from Lifecore Biomedical Inc for further details.
