Trinity Biotech plc Q4 FY2023 earnings call

• New financial guidance targets ~$20M annualized run-rate EBITDASO by Q2 2025 based on ~$75M revenue from existing businesses. - Acquired Waveform Technologies' biosensor technology to enter the CGM market, with plans to update and launch an affordable CGM. - Transformation plan for existing business includes consolidating manufacturing, reducing SG&A, and optimizing supply chain. - Progress in HIV testing manufacturing to scale for Kenya's program, completed development of new diabetes HbA1c Column System with cost and convenience benefits, and optimized components in Hemoglobin Instrument business.

In Q4 2023, revenues were $13.4 million, down from $15.7 million in Q4 2022. Key segments: Hemoglobin business declined by $1M QoQ due to deferred year-end shipments; Autoimmune business declined by $0.6M QoQ from loss of transplant testing; COVID-19 VTM products declined by $0.2M; Point of care had a $0.5M decline in Uni-Gold test sales but $0.4M from TrinScreen. Full year 2023 revenue was $56.8M, down ~9% from 2022. Gross margin for Q4 2023 was 34%, and for full year 2023 was 34.2%. The biosensor business is not included in current guidance as it's a newly acquired asset.

• Targets ~$20M annualized run-rate EBITDASO by Q2 2025 based on ~$75M revenue from existing businesses. - 2024 is off to a strong start, increasing confidence in the outlook. - Guidance excludes revenue from the newly acquired biosensor business.

• Regulatory challenges in entering new markets for products like CGM. - Execution risks in implementing the transformation plan for cost reduction and operational efficiency. - Legal challenges affecting HIV testing orders in Kenya, though focus remains on delivering ordered tests for the program.

Q: Are the new diabetes business products approved and ready for market?

A: Local registrations may be required, but they are variants of existing approved products with no regulatory risk for testing performance.

Q: Progress of TrinScreen in other African markets?

A: Working on entering other African markets, but it takes time as it involves national algorithms and competitive processes.

Q: Does the guidance for 2025 include CGM revenue?

A: No, the guidance is built upon the existing business, excluding revenue from the biosensor (CGM) business.

Q: Target gross margin for 2025?

A: Targeting ~50% gross margin through procurement efficiencies, outsourcing less complex manufacturing, and consolidating manufacturing sites.

Q: Growth source between point-of-care and lab?

A: More on point-of-care, particularly with TrinScreen due to its higher volume potential in screening markets.

Q: Hemoglobin growth in U.S. vs international?

A: More growth expected in international markets, especially in regions with high hemoglobin variant and growing diabetes.

Q: Growth of Sjogren's test?

A: Continues to grow as autoimmune issues remain relevant.

Q: CGM segment spending in EBITDA guidance?

A: CGM spend is capitalized under IFRS and is optional, only continued if returns are seen from the development.