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CRL NYSE· Charles River Laboratories International Inc
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CRL NYSE· Charles River Laboratories International Inc
Earnings report Q4 2023

Charles River Laboratories International, Inc. Reports 3.9% Increase in Revenue in Fiscal Year 2023

Segments of Revenue

In fiscal year 2023, Charles River Laboratories International, Inc. (CRL) reported total revenue of $4.1 billion, representing a 3.9% increase compared to the previous fiscal year. This growth was primarily driven by increased volume and pricing within the Safety Assessment business and the recent acquisition of Explora BioLabs. However, this growth was partially offset by the divestiture of the Avian business and the impact of changes in foreign currency exchange rates.

Strengths

CRL's revenue growth can be attributed to several factors. Firstly, the company's Safety Assessment business experienced increased volume and pricing, indicating strong demand for its services. Additionally, the acquisition of Explora BioLabs contributed to the revenue growth, expanding CRL's capabilities and customer base. Furthermore, the company's flexible outsourcing solutions and broad scientific capabilities have positioned it well to meet the evolving needs of its clients. CRL's Insourcing Solutions business, particularly its CRADL™ operations, performed well, driven by clients' adoption of the flexible model to access vivarium space without significant infrastructure investments.

Challenges

Despite the overall revenue growth, CRL faced challenges in certain areas. The divestiture of the Avian business had a negative impact on revenue. Moreover, changes in foreign currency exchange rates affected the company's revenue when compared to the previous fiscal year. Additionally, the company highlighted that its quarterly operating results may fluctuate due to various factors, including changes in the global economy, cyclical buying patterns of clients, and the financial performance of strategic and venture capital investments. These factors pose potential challenges to CRL's future financial performance.

Noteworthy

It is noteworthy that CRL's revenue growth was primarily driven by increased volume and pricing within the Safety Assessment business and the acquisition of Explora BioLabs. The company's expansion of CRADL™ operations, both organically and through the acquisition of Explora BioLabs, demonstrates its commitment to meeting client demand and enhancing its research model services. CRL remains confident that research models and services will continue to be essential tools for its clients' drug discovery and early-stage development efforts.

Summary

Charles River Laboratories International, Inc. reported a 3.9% increase in revenue in fiscal year 2023, reaching $4.1 billion. This growth was driven by increased volume and pricing in the Safety Assessment business, as well as the acquisition of Explora BioLabs. The company's flexible outsourcing solutions and broad scientific capabilities have positioned it well to meet client needs. However, challenges such as the divestiture of the Avian business and changes in foreign currency exchange rates impacted the revenue. CRL's expansion of CRADL™ operations and its confidence in the continued importance of research models and services highlight its commitment to innovation and client satisfaction.

Source documents

Form 10-K  filed on Feb 14, 2024
100 pages scanned

Reference data

Company financials Q4 revenue 1.01B
Analyst estimates Q4 EPS beat by 2.40%
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