Novacyt swings to profit on soaring Covid test sales

Covid-19 test maker Novacyt swung to a first-half profit driven by soaring sales during the current pandemic and said it expected core annual earnings to top €100m.

The company on Thursday reported pre-tax profit of €40.2m in the six months to June 30, compared with a loss of €2m a year ago. Revenue increased 900% to €72.3m in what Novacyt Graham Mullis called a “transformational” half.

Full-year revenue was forecast to exceed €150m.

Earnings before interest, taxes, depreciation and amortisation rose to €49.4m from €0.2m.

"Novacyt's near-term focus is to deliver strong organic revenue growth in the core business, where the directors believe demand for its products will continue to grow into at least the first half of 2021 as Covid-19 testing continues," the company said.

“The company expects this rate of financial performance to extend into the first half of 2021. The directors remain confident in and excited by the prospects of the business, not only for the short-term, but also for the longer-term.”