Bio-Rad reports first-quarter 2024 financial results

Bio-Rad Laboratories, Inc. announced financial results for the first quarter ended March 31, 2024.

First-quarter 2024 total net sales were $610.8 million, a decrease of 9.8 percent compared to $676.8 million reported for the first quarter of 2023. On a currency-neutral basis, quarterly sales decreased 9.6 percent compared to the same period in 2023.

Life Science segment net sales for the first quarter were $241.7 million, a decrease of 25.3 percent compared to the same period in 2023. On a currency-neutral basis, Life Science segment sales decreased by 25.2 percent compared to the same quarter in 2023. The currency-neutral year-over-year sales decrease was broad-based and was primarily driven by ongoing weakness in the biotech and biopharma end-markets and the economic environment in China.

Clinical Diagnostics segment net sales for the first quarter were $368.6 million, an increase of 4.7 percent compared to the same period in 2023. On a currency-neutral basis, net sales increased 4.8 percent versus the same quarter last year. The currency-neutral year-over-year sales increase was primarily driven by an increased demand for quality control, blood typing, and diabetes products.

First-quarter gross margin was 53.4 percent compared to 53.5 percent during the first quarter of 2023.

Income from operations during the first quarter of 2024 was $44.7 million versus $61.9 million during the same quarter last year.

Net income for the first quarter of 2024 was $383.9 million, or $13.45 per share, on a diluted basis, versus net income of $69.0 million, or $2.32 per share, on a diluted basis, during the same period in 2023. Net income amounts for the first quarter of 2024 and 2023 were primarily impacted by the recognition of changes in the fair market value of equity securities related to the holdings of the company’s investment in Sartorius AG.

The effective tax rate for the first quarter of 2024 was 21.8 percent, compared to 18.7 percent for the same period in 2023. The effective tax rate reported in these periods was primarily affected by the accounting treatment of our equity securities.

“Our first quarter results were largely in line with expectations,” said Norman Schwartz, Bio-Rad’s President and Chief Executive Officer. “The ongoing weakness in the biotech and biopharma markets impacted sales of our life science research products while increased demand for our clinical diagnostics products drove year-over-year growth for this business. We are cautiously optimistic about a gradual biopharma market recovery in the second half of the year and remain confident in our overall strategy and long-term market opportunities.”

The non-GAAP financial measures discussed below exclude certain items detailed later in this press release under the heading “Use of Non-GAAP and Currency-Neutral Reporting.” A reconciliation between historical GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this press release.

Non-GAAP gross margin of 54.2 percent for the first quarter of 2024 was unchanged compared to 54.2 percent during the first quarter of 2023.

Non-GAAP income from operations during the first quarter of 2024 was $59.0 million versus $84.2 million during the comparable prior-year period.

Non-GAAP net income for the first quarter of 2024 was $65.2 million, or $2.29 per share, on a diluted basis, compared to $99.4 million, or $3.34 per share, on a diluted basis, during the same period in 2023.

The non-GAAP effective tax rate for the first quarter of 2024 was 22.3 percent, compared to 20.9 percent for the same period in 2023. The higher rate in 2024 was driven by geographical mix of earnings and change in valuation allowance related to our deferred tax assets.

Full-year 2024 financial outlook
Bio-Rad is maintaining its financial outlook for the full year 2024. The company continues to expect non-GAAP, currency-neutral revenue growth of approximately 1.0 to 2.5 percent and an estimated non-GAAP operating margin of approximately 13.5 to 14.0 percent.
MB Bureau