Bio-Rad reports 3Q 2021 financial results

Bio-Rad Laboratories, Inc., a global leader of life science research and clinical diagnostic products, today announced financial results for the third quarter ended September 30, 2021.

Third-quarter 2021 net sales were $747.0 million, an increase of 15.4 percent compared to $647.3 million reported for the third quarter of 2020. On a currency-neutral basis, quarterly sales increased 13.8 percent compared to the same period in 2020. Third-quarter gross margin was 58.6 percent compared to 56.7 percent during the third quarter in 2020.

Life Science segment net sales for the third quarter were $373.5 million, an increase of 15.3 percent compared to the same period in 2020. On a currency-neutral basis, Life Science segment sales increased by 13.9 percent compared to the same quarter in 2020. Currency-neutral sales growth was primarily attributed to sales of our Droplet Digital PCR® and Process Media product lines, as well as back royalties from a legal settlement. On a geographic basis, Life Science currency-neutral year-over-year sales grew across the Americas and Asia but declined in Europe. Excluding COVID-19-related sales, European region revenue posted a double-digit percent increase from the year ago period.

Clinical Diagnostics segment net sales for the third quarter were $372.2 million, an increase of 15.5 percent compared to the same period in 2020. On a currency-neutral basis, net sales increased 13.7 percent versus the same quarter last year. Currency-neutral sales were up for all product lines and across all regions, primarily driven by higher utilization in lab operations as businesses recover from the COVID-19 pandemic.

Income from operations during the third quarter of 2021 was $156.8 million versus $109.6 million during the same quarter last year.

Net income for the third quarter of 2021 was $3,928.0 million, or $129.96 per share on a diluted basis, versus $1,314.8 million, or $43.64 per share on a diluted basis, during the same period in 2020. Net income for the third quarter of 2021 and 2020 was impacted by the recognition of changes in the fair market value of equity securities, primarily related to the holdings of our investment in Sartorius AG. The effective tax rate for the third quarter of 2021 was 21.8 percent, compared to 21.9 percent for the same period in 2020. The tax rates for both periods were driven by the large unrealized gain in equity securities.

“We are pleased with our performance in the third quarter, which reflected strength across many product lines,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “During the quarter, demand continued for products associated with COVID-19 testing and research, though at a more moderate level,” he said.

Non-GAAP net income and non-GAAP diluted income per share (non-GAAP EPS) are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Non-GAAP Reporting.”

Non-GAAP net income for the third quarter of 2021 was $112.2 million, or $3.71 per share on a diluted basis, compared to $90.3 million, or $3.00 per share on a diluted basis, during the same period in 2020.

The non-GAAP effective tax rate for the third quarter of 2021 was 18.0 percent, compared to 22.5 percent for the same period in 2020. The lower rate in 2021 was driven by the geographic mix of earnings. In addition, the effective tax rate was lower as a result of an increase in compensation related tax deductions.

On a reported basis, net sales for the first three quarters of 2021 increased 24.7 percent to $2,189.8 million compared to $1,755.8 million for the same period in 2020. On a currency-neutral basis, net sales grew 21.2 percent.

Year-to-date net income for 2021 was $5,819.6 million, or $192.76 per share on a fully diluted basis, compared to $2,967.2 million, or $98.46 per share during the same period in 2020. The COVID-19 pandemic positively impacted overall results for the first three quarters of the year. On a non-GAAP basis net income for the first three quarters of 2021 was $376.2 million, or $12.46 per share, compared to $196.2 million, or $6.51 per share during the same period in 2020.

“Throughout the year we adapted well to challenges posed by the COVID-19 pandemic, supporting our customers and ensuring the safety of our employees while continuing to make progress on our core strategies,” Mr. Schwartz said. “As we head into the end of 2021, we will continue to build on the progress we’ve made during the first three quarters and expect to generate improved operating profit over 2020,” he added. Business Wire