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Trinity Biotech projects Q2 revenue growth, UK deal

EditorBrando Bricchi
Published 08/02/2024, 09:52 AM
TRIB
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DUBLIN - Trinity Biotech plc (NASDAQ:TRIB), a company specializing in human diagnostics and diabetes management solutions, has reported preliminary revenue expectations for the second quarter of 2024. The company anticipates revenues to be in the range of $15.5 to $16.0 million, marking a year-over-year increase from $13.9 million in the same quarter of the previous year. The expected gross margin percentage is projected to align with figures reported in the second quarter of 2023.

Trinity Biotech has also announced the commencement of a distribution agreement with MedScience, a subsidiary of Pharmed Group, effective as of August 1, 2024. This partnership aims to distribute Trinity Biotech's products, including clinical chemistry, infectious disease, and autoimmune products, within the United Kingdom.

John Gillard, President and CEO of Trinity Biotech, expressed optimism about the company's revenue growth, attributing it to the successful sales of their new HIV screening product, TrinScreen HIV. He also highlighted the company's plans to publish a comprehensive earnings report in mid-August, which will provide further updates on their business activities, including the Comprehensive Transformation Plan and the continuous glucose monitor (CGM) program.

MedScience's Chief Commercial Officer, John Gannon, welcomed the partnership, anticipating a fruitful relationship between the two companies.

In addition to these developments, Trinity Biotech reaffirmed its financial guidance, aiming to achieve approximately $20 million of annualized run-rate EBITDASO on annualized run-rate revenues of around $75 million by the second quarter of 2025.

Trinity Biotech's forward-looking statements in the press release address various factors that could influence the company's financial performance, including market acceptance of new products, recurring revenues, and operational results. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

This news report is based on information provided in a press release statement from Trinity Biotech plc.

In other recent news, Trinity Biotech has seen significant developments in its operations. The company has announced the appointment of Louise Tallon as its new Chief Financial Officer, who will assume her role in August 2024. Tallon's arrival comes with expectations of supporting Trinity Biotech's strategic growth and the launch of its next-generation continuous glucose monitoring (CGM) device.

In earnings and revenue results, Trinity Biotech reported a substantial quarter-on-quarter growth in its Point-of-Care revenues for the first quarter of 2024, primarily driven by the scaling of their rapid HIV test, TrinScreen. Despite a drop in overall revenue compared to the same period last year, the company remains focused on its growth strategy, which includes expanding its HIV test production and developing a new CGM device.

The company plans to manufacture four times as many TrinScreen HIV tests in May compared to the previous year and expects to enter pivotal clinical trials for its CGM device by summer 2025. However, the company reported a net loss from continuing operations for Q1 2024. These are recent developments that reflect Trinity Biotech's commitment to capturing market opportunities.

InvestingPro Insights

As Trinity Biotech plc (NASDAQ:TRIB) looks to the future with its new distribution agreement and revenue growth, a glance at the company's financial health through InvestingPro data reveals some challenges and opportunities. With a market capitalization of approximately $26.93 million, the company's financials reflect a period of transition. The gross profit margin for the last twelve months as of Q1 2024 stands at 34.21%, indicating a stable ability to maintain a profit on every dollar of revenue. However, it's notable that the company experienced a decline in revenue growth of -23.3% during the same period, emphasizing the importance of the new distribution partnership and product launches in reversing this trend.

InvestingPro Tips highlight that Trinity Biotech operates with a significant debt burden and is quickly burning through cash, which could be areas of concern for potential investors. Analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. On the brighter side, the company has seen a strong return over the last month and three months, with price total returns of 40.15% and 69.35%, respectively. These returns could be indicative of investor confidence in the company's strategic initiatives and the potential for future growth.

Notably, Trinity Biotech does not pay a dividend to shareholders, which is a common practice for companies focusing on reinvestment and growth. For those interested in deeper analysis, there are additional InvestingPro Tips available, providing further insights into Trinity Biotech's financials and performance metrics. These tips can be accessed through the dedicated InvestingPro product page for Trinity Biotech at https://www.investing.com/pro/TRIB.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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