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Investing.com - PolyPeptide Group AG (SIX:PPGN) saw its shares jump 6.5% after reporting robust first half 2025 results, with revenue soaring 23.7% YoY to €167.1 million, significantly outpacing analyst expectations by 12%.
The peptide-focused contract development and manufacturing organization (CDMO) has revised its full-year guidance toward the upper end of its previously announced range.
The strong performance was primarily driven by a 98.2% increase in metabolic therapeutics revenue and a 37.9% surge in commercial revenue, reflecting successful ramp-up of the company’s new large-scale solid phase peptide synthesis (SPPS) capacity at its Belgian site.
Despite the impressive top-line growth, EBITDA remained constrained at €4.4 million, up from €2.9 million in H1 2024 but below consensus estimates by €2.5 million.
"I’m pleased with PolyPeptide’s achievements to date in 2025, having increased revenue by 24% and successfully ramped up SPPS capacity at our Belgian site," said CEO Juan José González.
"We are in a strong position to continue participating in the dynamic global peptide market, which is driven by the attractive metabolic opportunity."
The company now expects full-year revenue growth of 13-20% at constant currency rates, up from its previous guidance of 10-20%, with an EBITDA margin in the high single-digit to low double-digit range.
Capital expenditures are projected at approximately €100 million for the year.
Operating cash flow showed dramatic improvement, reaching €49.7 million compared to just €0.5 million in the same period last year, bolstered by €27.7 million in customer prepayments.
The company also expanded its revolving credit facility by an additional €40 million to €151 million to enhance financial flexibility.
PolyPeptide confirmed its mid-term outlook of doubling its 2023 revenue by 2028 and approaching an EBITDA margin of 25% by that time.
The company also announced the appointment of Raoul Bernhardt as Chief Manufacturing and Supply Chain Officer, bringing over 30 years of industry experience to help drive operational excellence.
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