Prenetics Announces Fourth Quarter and Full Year 2023 Financial Results
HONG KONG, April 01, 2024 (GLOBE NEWSWIRE) -- Prenetics Global Limited (NASDAQ: PRE) ("Prenetics" or the "Company"), a leading genomics-driven health sciences company, today announced unaudited financial results for the fourth quarter and full year ended December 31, 2023, along with recent business updates.
Financial Highlights
-- Revenue from continuing operations of US$21.7 million in the full year
2023, an increase of 65.2% as compared to the full year 2022.
-- Revenue from continuing operations of US$5.4 million in the fourth
quarter 2023, an increase of 90.8% as compared to the fourth quarter
2022.
-- Adjusted EBITDA from continuing operations of US$(24.8) million in the
full year 2023.
-- Adjusted EBITDA from continuing operations of US$(6.2) million in the
fourth quarter 2023.
-- Cash and other short-term assets1 of US$93.7 million as of December 31,
2023. Additionally, Insighta2, our 50/50 joint venture in early cancer
detection with Professor Dennis Lo, had a cash balance of US$79.1 million
in its balance sheet as of December 31, 2023.
Danny Yeung, Chief Executive Officer and Co-Founder of Prenetics said: "As we reflect on the past year, we knew that 2023 was set to be a challenging yet transformational period for Prenetics, especially as we emerged from the shadow of COVID. Our focus remained unwaveringly on driving our existing business units, ACT Genomics and CircleDNA, towards growth and profitability. I am proud to announce that for the first time in our history, both units achieved profitability in December 2023, while increasing full year revenue from continuing operations by 65.2%, setting a precedent for a promising fiscal trajectory into 2024.
With this significant turnaround, we are confidently revising our revenue projections for the full year 2024 to be in the range of US$33 million to US$36 million with profitability being a major focus. This progress is not just a milestone but also a catalyst that empowers us to judiciously invest our capital and resources into new business ventures. We foresee vast opportunities within the consumer healthcare sector and look forward to sharing more about our strategic initiatives in due course.
This past year also marked the completion of a pivotal 500-person clinical trial with Insighta, our early cancer detection venture with Prof. Dennis Lo, yielding very positive results. We expect to publish these findings towards the end of 2024, and we are gearing up for an even more extensive overseas clinical trial beginning in Q3 of this year. Details of this will be shared in the next earnings update.
In summary, 2023 was a testament to our commitment to executing our strategic objectives and operational excellence. Looking ahead to 2024, with a strong cash position, no debt, a dedicated management team and potentially large opportunities in consumer healthcare, we are poised to build on our momentum and delivering long-term value to our shareholders. Stay tuned as we continue this exciting journey, with transformative developments on the horizon."
Recent Highlights
-- ACT Genomics and CircleDNA business units achieved EBITDA breakeven
(non-IFRS) in December 2023, the first time in the Company's history.
-- The two units are expected to generate a combined revenue in the range of
US$33 million to US$36 million, up from US$21.7 million in 2023.
-- Insighta's 500-participants clinical trial for early cancer detection has
been completed and is preparing for publication of full results which is
expected by the end of 2024.
-- Our management team is diligently pursuing significant new ventures
within the consumer healthcare market, with more information to be
revealed in the upcoming period.
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(1) Represents current assets, including cash and cash equivalents and short-term deposits totaling US$61.7 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 December 31, 2023, we owned 50% shareholding in Insighta, which was accounted for under equity-accounted investee. Equity-accounted investees, totaling US$98.5 million as of December 31, 2023, were classified as non-current assets on our balance sheet.
Full Year 2023 Financial Results
Total revenue from continuing operations for the full year of 2023 was US$21.7 million, representing an increase of 65.2% from the previous year.
Adjusted net loss attributable to equity shareholders of Prenetics was US$(28.4) million for the year ended December 31, 2023. The difference between adjusted net loss of US$(28.4) million and net loss for the year of US$(63.0) million are primarily attributable to non-cash and non-recurring adjustments, including: (i) non-cash impairment loss of goodwill of US$3.9 million; (ii) non-cash fair value changes on financial assets at fair value through profit or loss of US$7.1 million; (iii) non-recurring restructuring charges of US$2.4 million and loss from discontinued products; and (iv) non-cash equity-settled share-based payment expenses of US$10.6 million, offset by non-cash fair value gain on warrant liabilities of US$3.4 million. While such non-cash charges increase our reported net loss in the year, in our view such charges had no impact on the Company's cash balance and were not representative of our overall financial health.
About Prenetics
Prenetics (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 www.prenetics.com.
Investor Relations Contact:
investors@prenetics.com
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 Presentation
Unaudited 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 Measures
To 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)/profit 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.
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