WuXi Biologics announces its unaudited interim results for the six months ended June 30, 2017.
"We delivered yet another strong performance for the first half of 2017, with revenues across each of our key geographies increasing significantly," said Dr. Ge Li, Chairman of WuXi Biologics. "With US$452 million of backlog and 134 ongoing integrated projects, the momentum of our business is stronger than ever. We continue to be confident that we will deliver 2017 full-year financials as we expected."
Revenue increased by 59.5% year-on-year to RMB654.0 million in the first half of 2017. The major revenue growth drivers are a continued increase in the number of customers and the strong growth in the number of integrated projects; marketing efforts by the Group, resulting in robust performance in China, United States and Europe.
Gross profit grew 41.6% year-on-year to RMB264.3 million while gross profit margin was 40.4%, compared to 45.5% and 39.3% for the first six months and full year of 2016 respectively. The lower gross profit margin compared to the first six months of 2016 was primarily due to higher milestone fees received during the first six months of 2016.
Adjusted EBITDA increased by 51.7% year-on-year to RMB266.1 million in the first half of 2017. Adjusted EBITDA margin was 40.7%, compared to 42.8% and 37.5% for the first six months and full year of 2016 respectively. The lower adjusted EBITDA margin compared to the first six months of 2016 was primarily due to higher milestone fees received during the first six months of 2016.
Net profit increased by 9.9% year-on-year to RMB92.2 million in the first half of 2017. Net profit margin was 14.1%, compared to 20.5% and 14.3% for the first six months and full year of 2016 respectively. The lower net profit margin compared to the first six months of 2016 was primarily due to a higher interest expense, impact of FX losses, and higher milestone fees received during the first six months of 2016.
Adjusted net profit, which excludes share-based compensation, FX gains or losses, and listing expenses increased 35.8% year-on-year to RMB152.8 million in the first half of 2017. Adjusted net profit margin was 23.4%, compared to 27.4% and 22.2% for the first six months and full year of 2016 respectively. The lower adjusted net profit margin compared to the first six months of 2016 was primarily due to higher interest expense and higher milestone fees received during the first six months of 2016.