Due to the overall high significance of biotechnological products, processes, and services for sustainable industrial processes, nutrition, health, and the environment, BRAIN anticipates a positive environment for the future of the sector as a whole. As a technology company active in the industrial biotechnology sector, BRAIN regards itself as in a position to contribute significant added value for industrial partners, as well as in the context of its own research and development, and as a product provider.

The original expectation of a positive business trend in the financial year under review with dynamic revenue growth and a further improvement in adjusted EBITDA was fully met in the past financial year. Revenue increased by 11.8 %. In organic terms, too, revenue posted growth. Adjusted EBITDA improved by € 0.5 million year-on-year, from € -0.1 million to € 0.4 million, despite the higher level of investments in genome editing activities.

For the 2023/24 financial year, the Management Board expects business growth with a further considerable increase in revenue and at least the same increase in adjusted EBITDA at Group level. For this indication, we assume that business activities will remain largely unchanged.

For the BioProducts and BioScience segments, in addition to revenue growth in the mid to high single-digit percentage range, a further improvement in positive adjusted EBITDA is forecast to at least the same extent. It is expected that the percentage increase in adjusted EBITDA can be realized at least in line with the percentage rate of growth in revenue. In the BioIncubator segment, R&D expenses in the mid seven-figure range are expected in relation to the new business development pipeline and the novel genome editing tool, with continued low revenue levels and a resultant negative adjusted EBITDA of approximately the same magnitude. Holding segment costs and the associated negative impact on adjusted EBITDA will remain at around the previous year’s level as planned.

BRAIN expects to continue to successfully realize milestones in important projects during the next financial year. This concerns both milestone payments and published progress reports on individual projects. Four milestones were reached in the financial year under review and the number is expected to remain the same or increase slightly during the next financial year.

Research and development expenses in the financial year under review remained at a high level. For the coming financial year, we will continue to invest heavily in research and development, further strengthening the company’s future potential.

As in the previous year, these forecasts are based on the assumption that the macroeconomic trends and sector-specific conditions for industrial biotechnology will continue to develop further in the next financial year as described in the section “Macroeconomic and sector-specific conditions”, that existing projects will not be cancelled unexpectedly and that further cooperation partners can be acquired for new projects. This forecast is also based on the assumptions that the effects of war and political actions will not have a significant impact on BRAIN’s planned revenue growth and associated earnings improvements, and that the general public will continue to exhibit an interest in sustainable products. The forecasts are also based on a permanently stable supply of natural gas, oil, and electricity at normal market prices. We expect inflationary pressure to remain in the area of primary products and labor costs, and that we will be able to pass these cost increases on to our customers as far as possible. We also assume that the company will continue to succeed in retaining and motivating employees and in successfully recruiting new talent in the future.