Abcam plc

For full-year 2022, Abcam reported revenue of GBP361.7 million, up approximately 15% on a reported basis and approximately 8% at constant exchange rates. Adjusted gross margin was 75.5%, up 330 basis points from 72.2% in 2021, adjusted operating margin was 21.1%, up 190 basis points year over year, and adjusted diluted EPS was GBP0.249, up 21%. Management said ERP implementation and COVID-19 in China together reduced sales by about GBP30 million and negatively impacted revenue growth by about 10% reported and 9% constant currency. Looking ahead to 2023, the company reiterated 15% to 20% constant-currency revenue growth, which implies approximately GBP420 million to GBP440 million of reported revenue at current FX, with slower H1 growth, modest China growth, and a stronger H2; it also reiterated ongoing adjusted operating margin expansion toward 2024 targets.

Alan Hirzel framed 2022 as a year of meaningful strategic progress despite a difficult second half. He emphasized Abcam’s shift toward a more internally developed portfolio, stronger influence in life sciences, and the move from tools for discovery research toward products that can travel into clinical applications. He sounded optimistic that the heavy lifting of major transformation work is largely behind the company, and said 2023 and 2024 should be years of refinement and performance improvement.

Michael Baldock focused on the numbers and the operational drivers behind them. He said the GBP361.7 million revenue result included about 7% of reported growth from FX tailwinds, while ERP and China issues together created about GBP30 million of headwind; in-house revenue grew 18% constant currency and now makes up 67% of total sales. He highlighted adjusted gross margin of 75.5%, adjusted operating margin of 21.1%, and adjusted diluted EPS of GBP0.249, and noted depreciation should rise from GBP32.8 million in 2022 to about GBP40 million in 2023 as ERP-related investments come through. He also said operating expense growth is moderating and that the company remains focused on margin expansion and operating leverage toward 2024 goals.

Analysts pressed on the China recovery, the ERP rollout, and whether the 2023 outlook implied a lingering demand or execution hangover. Management said China began improving after Lunar New Year but is still hard to predict, and Tommy Thomas clarified that full-year China growth is expected to be mid-teens. On ERP, management said the main issue was shipping product rather than a collapse in demand, and that ordering is now returning to normal with no expectation of a big catch-up surge. Analysts also asked about margin cadence, capital allocation, and assay growth; management said 2023 margin expansion should track toward 2024 targets, acquisitions remain possible but only at the right fit and price, and the assay opportunity is being driven by early biomarker insight and partnerships rather than a stand-alone multiplex platform push.