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Prenetics Announces First Quarter 2024 Financial Results

First Quarter Revenue Increased 30.2% and Gross Profit Increased 159.8% from Prior Year Quarter Confirms Strategic Pivot Targeting the U.S. Consumer Healthcare Market Reaffirms 2024 Revenue Range of US$33 million to US$36 million LOS ANGELES, June 18, 2024 (GLOBE NEWSWIRE) -- Prenetics Global Limited (NASDAQ:PRE) ("Prenetics" or the "Company"), a leading health sciences company, today announced unaudited financial results for the first quarter ended March 31, 2024, along with recent business updates. First Quarter 2024 Financial Highlights Revenue from continuing operations of US$6.4 million in the first quarter 2024, an increase of 30.2% as compared to the first quarter 2023. Gross profit from continuing operations of US$3.8 million in the first quarter 2024, an increase of 159.8% as compared to the first quarter 2023. Adjusted EBITDA from continuing operations of US$(4.1) million in the first quarter 2024, an improvement of 55.9% as compared to the first quarter 2023. Cash and other short-term assets1 of US$86.6 million as of March 31, 2024. Additionally, Insighta2, our 50/50 joint venture in early cancer detection with Professor Dennis Lo, had a cash balance of US$79.8 million in its balance sheet as of March 31, 2024. Danny Yeung, Chief Executive Officer and Co-Founder of Prenetics remarked: "The first quarter of 2024 marked a good start for our company, showcasing solid growth in revenue and gross profit. These results demonstrate firm governance of our financial position with no debt supported by a resilient and talented team. As we enter the second half of 2024, we are making significant strides in our strategic realignment with a keen focus on the consumer healthcare market in the USA. Our purpose remains dedicated to our science first approach in our pivot to consumer healthcare to broaden accessibility to science based health and wellness. To support this growth, we have established dual headquarters with a presence in the US which will position us to seize new opportunities both domestically and globally. We look forward to sharing more details on the new direction of Prenetics in the near future," concluded Mr. Yeung. Recent Business Updates Continued improvement on financial performance, achieving 30.2% increase in revenue from continuing operations, a 55.9% reduction in adjusted EBITDA loss, and ended the quarter with strong financial position of cash and short-term assets position of US$86.6 million as of March 31, 2024. Initiate a strategic realignment with an accelerated focus on the consumer healthcare sector, presenting vast global opportunities, beginning with the USA. Insighta, the Company's early cancer detection venture continues to show significant progress as initial pre-clinical data on Prostate cancer shows very promising results. Insighta has received all approvals necessary to move forward with a 1,500 person clinical trial with patient recruitment to begin in July 2024. ______________________________ 1 Represents current assets, including cash and cash equivalents and short-term deposits totaling US$54.5 million, financial assets at fair value through profit or loss of US$11.0 million, and trade receivables of US$4.1 million, amongst other accounting line items under current assets.2 As of March 31, 2024, we owned 50% shareholding in Insighta, which was accounted for under equity-accounted investee. Equity-accounted investees, totaling US$98.2 million as of March 31, 2024, were classified as non-current assets on our balance sheet. About PreneticsPrenetics (NASDAQ:PRE), a leading genomics-driven health sciences company, is revolutionizing prevention, early detection, and treatment. Our prevention arm, CircleDNA, uses whole exome sequencing to offer the world's most comprehensive consumer DNA test. Insighta, our $200 million joint venture with renowned scientist Prof. Dennis Lo, underscores our unwavering commitment to saving lives through pioneering multi-cancer early detection technologies. Lastly, ACT Genomics, our treatment unit, is the first Asia-based company to achieve FDA clearance for comprehensive genomic profiling of solid tumors via ACTOnco. Each of Prenetics' units synergistically enhances our global impact on health, truly embodying our commitment to ‘enhancing life through science'. To learn more about Prenetics, please visit Investor Relations Forward-Looking Statements This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's goals, targets, projections, outlooks, beliefs, expectations, strategy, plans, objectives of management for future operations of the Company, and growth opportunities are forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of the Company, which involve inherent risks and uncertainties, therefore they should not be relied upon as being necessarily indicative of future results. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: the Company's ability to further develop and grow its business, including new products and services; its ability to execute on its new business strategy in genomics, precision oncology, and specifically, early detection for cancer; the results of case control studies and/or clinical trials; and its ability to identify and execute on M&A opportunities, especially in precision oncology. In addition to the foregoing factors, you should also carefully consider the other risks and uncertainties described in the "Risk Factors" section of the Company's most recent registration statement and the prospectus therein, and the other documents filed by the Company from time to time with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. Basis of PresentationUnaudited 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 MeasuresTo 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 attributable to equity shareholders of Prenetics. These non-IFRS financial measures are not based on any standardized methodology prescribed by IFRS and are not necessarily comparable to similarly-titled measures presented by other companies. Management believes these non-IFRS financial measures are useful to investors in evaluating the Company's ongoing operating results and trends. 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 attributable to equity shareholders of Prenetics under IFRS and adjusted loss attributable to equity shareholders of Prenetics (Non-IFRS)" set forth at the end of this document. PRENETICS GLOBAL LIMITEDUnaudited consolidated statements of financial position(Expressed in United States dollars unless otherwise indicated)   March 31,   December 31,     2024     2023 Assets       Property, plant and equipment $ 4,585,957   $ 5,777,794 Intangible assets   13,169,672     13,424,648 Goodwill   29,170,123     29,170,123 Interests in equity-accounted investees   98,244,733     98,464,875 Financial assets at fair value through profit or loss   9,371,064     9,371,064 Deferred tax assets   27,630     27,680 Deferred expenses   1,483,348     3,530,756 Other non-current assets   948,811     743,173 Non-current assets   157,001,338     160,510,113 Deferred expenses   8,272,025     8,312,890 Inventories   2,815,607     3,126,776 Trade receivables   4,106,052     4,058,007 Deposits, prepayments and other receivables   5,708,610     5,284,848 Amount due from a related company   2,556     5,123 Amount due from an equity-accounted investee   126,177     132,114 Financial assets at fair value through profit or loss   11,034,200     11,034,200 Short-term deposits   —     16,000,000 Cash and cash equivalents   54,518,588     45,706,448 Current assets   86,583,815     93,660,406 Total assets $ 243,585,153   $ 254,170,519 Liabilities       Deferred tax liabilities $ 2,327,331   $ 2,614,823 Warrant liabilities   143,264     223,850 Lease liabilities   669,373     867,215 Other non-current liabilities   464,215     823,345 Non-current liabilities   3,604,183     4,529,233 Trade payables   1,637,568     1,671,019 Accrued expenses and other current liabilities   7,100,324     8,174,815 Contract liabilities   5,542,678     6,111,017 Lease liabilities   1,079,449     1,502,173 Liabilities for puttable financial instrument3   14,472,666     14,622,529 Tax payable   7,385,897     7,402,461 Current liabilities   37,218,582     39,484,014 Total liabilities   40,822,765     44,013,247 Equity       Share capital4   18,326     18,308 Reserves   199,425,243     206,339,490 Total equity attributable to equity shareholders of the Company   199,443,569     206,357,798 Non-controlling interests   3,318,819     3,799,474 Total equity   202,762,388     210,157,272 Total equity and liabilities $ 243,585,153   $ 254,170,519             PRENETICS GLOBAL LIMITEDUnaudited consolidated statements of profit or loss and other comprehensive income(Expressed in United States dollars unless otherwise indicated)   Three Months Ended     March 31,       December 31,       March 31,       2024