Bio-Rad Laboratories, Inc. has recently released its 10-K report for the fiscal year ended December 31, 2024. The company, founded in 1952 and headquartered in Hercules, California, operates through two segments: Life Science and Clinical Diagnostics. Bio-Rad Laboratories manufactures and distributes a wide range of products and services for scientific research, healthcare, education, and government customers worldwide, offering over 12,000 products and services to its diverse client base.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Bio-Rad Laboratories outlined several critical accounting policies and estimates, including those related to income taxes, impairment of goodwill, revenue recognition, and fair value measurements. The company emphasized the ongoing impact of global economic and geopolitical conditions on its business, particularly noting the challenges in the biopharma market and small biotech companies.
In terms of financial performance, Bio-Rad Laboratories reported a 3.9% decrease in net sales for the year ended December 31, 2024, compared to the previous year. The Life Science segment experienced a 12.8% decrease in sales, driven by ongoing weakness in the biotech and biopharma end-markets, while the Clinical Diagnostics segment saw a 3.3% increase in sales, primarily due to increased demand for quality control and blood typing products.
The company's consolidated gross margin for the year ended December 31, 2024, was 53.7%, showing a slight increase from the previous year. Selling, general and administrative expenses decreased to 31.7% of sales, primarily due to lower restructuring costs and reduced discretionary spending. However, research and development expenses increased to 11.5% of sales, mainly driven by a one-time acquired in-process research and development expense and an increase in the fair value of contingent consideration.
In terms of non-operating results, Bio-Rad Laboratories reported interest expenses of $48.9 million, foreign currency exchange gains of $3.9 million, and significant losses from the change in fair market value of equity securities and loan receivable, amounting to $2.66 billion for the year ended December 31, 2024.
As a result of these announcements, the company's shares have moved -9.5% on the market, and are now trading at a price of $277.16. For more information, read the company's full 10-K submission here.
