- Pharmaceutical product maker Probiotec (PBP) increased in value by more than a tenth today on the back of its latest revenue guidance
- The company says it is predicting between $118 million and $122 million in revenue for the 2021 financial year — an increase on the $107 million in FY20
- The revenue boost is supported by Probiotec’s $52.5 million buyout of packing company Multipack at the end of 2020
- Meanwhile, PBP Chairman Sandy Beard announces his resignation as of the end of the 2021 financial year, to be replaced by director Jonathan Wernig
- Shares in PBP are up 12.31 per cent and trading at $2.19 each just before market close
Pharmaceutical company Probiotec (PBP) has spiked on the ASX today after releasing its revenue guidance for the 2021 financial year.
The company said while COVID-19 certainly impacted the sale of some of its pharmaceutical products, demand has already started to return to pre-pandemic levels and is expected to keep improving over the rest of 2021.
As such, Probiotec is predicting full-year revenue for the 2021 financial year to land between $118 million and $122 million. For reference, PBP tabled $107 million in revenue over the 2020 financial year.
Further to this, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is predicted to come in between $21 million and $22 million compared to the $16.9 million earned last year.
However, to give a stronger indication of how future revenue might look for the business, Probiotec also issued a pro-forma revenue guidance based on the assumption it owned its subsidiary, Multipack, for the entire year.
The Multipack purchase
Probiotec announced its $52.5 million buyout of Multipack in November last year.
Multipack is one of the biggest contract packers in Australia, offering packing services for pharmaceutical, cosmetic, and consumer healthcare products, among others; the same type of products Probiotec manufactures and sells through its core business.
Probiotec officially completed the Multipack purchase on December 31 — meaning the new business has been contributed to group revenue since the start of 2021.
Today, Probiotec said that had Multipack been a part of PBP from the start of the 2021 financial year, final annual revenue would have landed between $159 million and $163 million.
Similarly, EBITDA would be between $29 million and $30 million for the full year on this pro-forma basis.
Looking ahead, Probiotec said it plans to drive its next phase of growth by leveraging the capabilities of the Multipack business and its customer base.
Board shuffle
Announced alongside the revenue guidance is an upcoming change of Chairman for PBP.
Company management said Chairman Sandy Beard will be stepping down from his role at the end of the 2021 financial year to be replaced by company director Jonathan Wenig.
Probiotec cited “significant new business commitments” as the reason for Mr Beard’s resignation.
The company said Mr Wenig was a “clear choice” for the role of new Chairman given his leadership, commercial acumen, and work ethic since joining the PBP board.
Probiotec said it will now begin looking for a new director to replace Mr Wernig.
Shares in PBP were up 12.31 per cent and trading at $2.19 each just before market close.