EX-99.1 2 ex991-2024q1.htm EX-99.1 Document
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Prenetics Announces First Quarter 2024 Financial Results

First Quarter Revenue Increased 30.2% and Gross Profit Increased 159.8% from Prior Year Quarter

Confirms Strategic Pivot Targeting the U.S. Consumer Healthcare Market

Reaffirms 2024 Revenue Range of US$33 million to US$36 million

LOS ANGELES, June 18, 2024 – Prenetics Global Limited (NASDAQ: PRE) (“Prenetics” or the “Company”), a leading health sciences company, today announced unaudited financial results for the first quarter ended March 31, 2024, along with recent business updates.

First Quarter 2024 Financial Highlights
•Revenue from continuing operations of US$6.4 million in the first quarter 2024, an increase of 30.2% as compared to the first quarter 2023.
•Gross profit from continuing operations of US$3.8 million in the first quarter 2024, an increase of 159.8% as compared to the first quarter 2023.
•Adjusted EBITDA from continuing operations of US$(4.1) million in the first quarter 2024, an improvement of 55.9% as compared to the first quarter 2023.
•Cash and other short-term assets1 of US$86.6 million as of March 31, 2024. Additionally, Insighta2, our 50/50 joint venture in early cancer detection with Professor Dennis Lo, had a cash balance of US$79.8 million in its balance sheet as of March 31, 2024.

Danny Yeung, Chief Executive Officer and Co-Founder of Prenetics remarked: “The first quarter of 2024 marked a good start for our company, showcasing solid growth in revenue and gross profit. These results demonstrate firm governance of our financial position with no debt supported by a resilient and talented team.

As we enter the second half of 2024, we are making significant strides in our strategic realignment with a keen focus on the consumer healthcare market in the USA. Our purpose remains dedicated to our science first approach in our pivot to consumer healthcare to broaden accessibility to science based health and wellness. To support this growth, we have established dual headquarters with a presence in the US which will position us to seize new opportunities both domestically and globally. We look forward to sharing more details on the new direction of Prenetics in the near future," concluded Mr. Yeung.

Recent Business Updates
•Continued improvement on financial performance, achieving 30.2% increase in revenue from continuing operations, a 55.9% reduction in adjusted EBITDA loss, and ended the quarter with strong financial position of cash and short-term assets position of US$86.6 million as of March 31, 2024.
•Initiate a strategic realignment with an accelerated focus on the consumer healthcare sector, presenting vast global opportunities, beginning with the USA.
•Insighta, the Company’s early cancer detection venture continues to show significant progress as initial pre-clinical data on Prostate cancer shows very promising results.
•Insighta has received all approvals necessary to move forward with a 1,500 person clinical trial with patient recruitment to begin in July 2024.


1 Represents current assets, including cash and cash equivalents and short-term deposits totaling US$54.5 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 March 31, 2024, we owned 50% shareholding in Insighta, which was accounted for under equity-accounted investee. Equity-accounted investees, totaling US$98.2 million as of March 31, 2024, were classified as non-current assets on our balance sheet.


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
PRE@mzgroup.us

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 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.

Management is excluding from some or all of its non-IFRS results (1) Employee equity-settled share-based payment expenses, (2) depreciation and amortization, (3) finance income and exchange gain or loss, net, and (4) certain items that may not be indicative of our business, results of operations, or outlook, including but not limited to non-cash and/ or non-recurring items. These non-IFRS financial measures are limited in value because they exclude certain items that may have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on an IFRS basis as well as a non-IFRS basis and also by providing IFRS measures in the Company’s public disclosures.
In addition, other companies, including companies in the same industry, may not use the same non-IFRS measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-IFRS measures as comparative measures. Because of these limitations, the Company's non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the non-IFRS reconciliations provided in the tables captioned “Reconciliation of loss from operations from continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS)”, “Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS)” and “Reconciliation of loss attributable to equity shareholders of Prenetics under IFRS and adjusted loss attributable to equity shareholders of Prenetics (Non-IFRS)” set forth at the end of this document.



PRENETICS GLOBAL LIMITED
Unaudited consolidated statements of financial position
(Expressed in United States dollars unless otherwise indicated)

March 31,December 31,
20242023
Assets
Property, plant and equipment$4,585,957 $5,777,794 
Intangible assets13,169,672 13,424,648 
Goodwill29,170,123 29,170,123 
Interests in equity-accounted investees98,244,733 98,464,875 
Financial assets at fair value through profit or loss9,371,064 9,371,064 
Deferred tax assets27,630 27,680 
Deferred expenses1,483,348 3,530,756 
Other non-current assets948,811 743,173 
Non-current assets157,001,338 160,510,113 
Deferred expenses8,272,025 8,312,890 
Inventories2,815,607 3,126,776 
Trade receivables4,106,052 4,058,007 
Deposits, prepayments and other receivables5,708,610 5,284,848 
Amount due from a related company2,556 5,123 
Amount due from an equity-accounted investee126,177 132,114 
Financial assets at fair value through profit or loss11,034,200 11,034,200 
Short-term deposits— 16,000,000 
Cash and cash equivalents54,518,588 45,706,448 
Current assets86,583,815 93,660,406 
Total assets$243,585,153 $254,170,519 
Liabilities
Deferred tax liabilities$2,327,331 $2,614,823 
Warrant liabilities143,264 223,850 
Lease liabilities669,373 867,215 
Other non-current liabilities464,215 823,345 
Non-current liabilities3,604,183 4,529,233 
Trade payables1,637,568 1,671,019 
Accrued expenses and other current liabilities7,100,324 8,174,815 
Contract liabilities5,542,678 6,111,017 
Lease liabilities1,079,449 1,502,173 
Liabilities for puttable financial instrument3
14,472,666 14,622,529 
Tax payable7,385,897 7,402,461 
Current liabilities37,218,582 39,484,014 
Total liabilities40,822,765 44,013,247 
Equity
Share capital4
18,326 18,308 
Reserves199,425,243 206,339,490 
Total equity attributable to equity shareholders of the Company199,443,569 206,357,798 
Non-controlling interests3,318,819 3,799,474 
Total equity202,762,388 210,157,272 
Total equity and liabilities$243,585,153 $254,170,519 



PRENETICS GLOBAL LIMITED
Unaudited consolidated statements of profit or loss and other comprehensive income
(Expressed in United States dollars unless otherwise indicated)

Three Months Ended
March 31,December 31,March 31,
202420232023
(Restated)
Continuing operations
Revenue$6,413,397 $5,428,460 $4,924,035 
Direct costs(2,630,751)(2,758,288)(3,467,939)
Gross profit3,782,646 2,670,172 1,456,096 
Other income and other net gain747,891 715,562 1,077,091 
Selling and distribution expenses5
(1,898,473)(1,908,415)(2,501,274)
Research and development expenses5
(2,731,050)(2,586,477)(3,233,538)
Impairment loss of goodwill— (3,900,268)— 
Administrative and other operating expenses5
(9,059,929)(10,362,374)(11,689,809)
Loss from operations(9,158,915)(15,371,800)(14,891,434)
Fair value loss on financial assets at fair value through profit or loss— (3,190,379)— 
Fair value gain on warrant liabilities80,586 671,550 1,260,276 
Share of loss of equity-accounted investees(216,245)(688,183)(112,751)
Other finance (costs)/income(16,339)1,073 (43,844)
Loss before taxation(9,310,913)(18,577,739)(13,787,753)
Income tax credit/(expense)285,938 (10,678)80,655 
Loss from continuing operations(9,024,975)(18,588,417)(13,707,098)
Discontinued operation
(Loss)/profit from discontinued operation, net of tax6
(26,615)(1,026,983)2,733,358 
Loss for the period(9,051,590)(19,615,400)(10,973,740)
Other comprehensive income for the period
Item that may be reclassified subsequently to profit or loss:
Exchange difference on translation of foreign operations(430,444)1,118,149 (636,502)
Total comprehensive income for the period$(9,482,034)$(18,497,251)$(11,610,242)
Loss attributable to:
Equity shareholders of Prenetics$(8,568,095)$(19,047,124)$(10,398,430)
Non-controlling interests(483,495)(568,276)(575,310)
$(9,051,590)$(19,615,400)$(10,973,740)
Total comprehensive income attributable to:
Equity shareholders of Prenetics$(9,001,379)$(18,677,610)$(10,495,918)
Non-controlling interests(480,655)180,359 (1,114,324)
$(9,482,034)$(18,497,251)$(11,610,242)
Loss per share:
Basic$(0.70)$(1.57)(0.99)
Diluted(0.70)(1.57)(0.99)
Loss per share - Continuing operations:
Basic(0.70)(1.49)(1.25)
Diluted(0.70)(1.49)(1.25)
Weighted average number of common shares:
Basic12,215,904 12,114,922 10,522,621 
Diluted12,215,904 12,114,922 10,522,621 



PRENETICS GLOBAL LIMITED
Unaudited Non-IFRS Financial Measures
(Expressed in United States dollars unless otherwise indicated)

Reconciliation of loss from operations from continuing operations under IFRS and adjusted EBITDA from continuing operations (Non-IFRS)

Three Months Ended
March 31,December 31,March 31,
202420232023
(Restated)
Loss from operations from continuing operations under IFRS$(9,158,915)$(15,371,800)$(14,891,434)
Employee equity-settled share-based payment expenses1,937,268 2,055,858 2,940,984 
Depreciation and amortization1,719,555 1,564,816 1,796,990 
Other strategic financing, transactional expense and non-recurring expenses2,096,563 6,263,188 1,847,131 
Finance income, exchange gain or loss, net(700,589)(673,740)(1,000,131)
Adjusted EBITDA from continuing operations (Non-IFRS)$(4,106,118)$(6,161,678)$(9,306,460)

Reconciliation of gross profit from continuing operations under IFRS and adjusted gross profit from continuing operations (Non-IFRS)

Three Months Ended
March 31,December 31,March 31,
202420232023
(Restated)
Gross profit from continuing operations under IFRS$3,782,646 $2,670,172 $1,456,096 
Employee equity-settled share-based payment expenses581 11,522 — 
Depreciation and amortization279,561 309,812 384,326 
Adjusted gross profit from continuing operations (Non-IFRS)$4,062,788 $2,991,506 $1,840,422 

Reconciliation of loss attributable to equity shareholders of Prenetics under IFRS and adjusted loss attributable to equity shareholders of Prenetics (Non-IFRS)

Three Months Ended
March 31,December 31,March 31,
202420232023
(Restated)
Loss attributable to equity shareholders of Prenetics under IFRS$(8,568,095)$(19,047,124)$(10,398,430)
Employee equity-settled share-based payment expenses1,937,268 2,055,858 3,124,189 
Other strategic financing, transactional expense and non-recurring expenses2,096,563 8,248,151 3,161,638 
Fair value gain on warrant liabilities(80,586)(671,550)(1,260,276)
Fair value loss on financial assets at fair value through profit or loss— 3,190,379 — 
Adjusted loss attributable to equity shareholders of Prenetics (Non-IFRS)$(4,614,850)$(6,224,286)$(5,372,879)




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3 In connection with the acquisition of ACT Genomics, the remaining shareholders of ACT Genomics - representing 25.61% of the fully diluted shareholding of ACT Genomics that Prenetics does not own - were granted put options which allow these remaining shareholders to put their remaining shares to Prenetics under certain conditions. The liabilities arising from such put option are recorded as liabilities for puttable financial instrument, and are valued at the present value of the exercise price of the put option.

4 Represents number of authorized and issued shares as follows:
March 31,December 31,
20242023
Number of authorized shares of $0.0015 each33,333,333 33,333,333 
Number of issued shares12,217,226 12,205,200 

5 Includes equity-settled share-based payment expenses from continuing operations as follows:
Three Months Ended
March 31,December 31,March 31,
202420232023
(Restated)
Direct costs$581 $11,522 $— 
Selling and distribution expenses1,053 (632)45,255 
Research and development expenses758,394 675,928 486,507 
Administrative and other operating expenses1,155,752 1,339,419 2,391,044 
Total equity-settled share-based payment expenses$1,915,780 $2,026,237 $2,922,806 

6 We ceased our COVID-19 testing business entirely in 2023 Q2, and other DNA testing operations in the EMEA regions in 2023 Q4. As a result, COVID-19 testing business and the operations in the EMEA regions are reported as a discontinued operation under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. In accordance with IFRS 5, the results of the discontinued operation have been presented separately from the continuing operations in the consolidated statements of profit or loss and other comprehensive income. The comparative information in the consolidated statements of profit or loss and other comprehensive income has also been re-presented to show the results of discontinued operation separately.