Charles River Laboratories International, Inc. reported total revenue of $4.0 billion for the fiscal year ending December 28, 2024, a decrease of 1.9% from $4.1 billion in the previous year. The decline was primarily attributed to lower volumes in the Discovery and Safety Assessment (DSA) segment, which faced reduced client spending amid a challenging biopharmaceutical demand environment. Operating income also fell significantly to $227.3 million, down 63.2% from $617.3 million in fiscal 2023, largely due to a $215 million goodwill impairment charge in the Manufacturing segment and restructuring costs.
The company undertook several strategic initiatives during the year, including the acquisition of a controlling interest in Noveprim Group, a supplier of non-human primates, which contributed positively to the Research Models and Services (RMS) segment. RMS revenue increased by 4.7% to $829.4 million, bolstered by higher pricing for small research models. Conversely, the DSA segment saw a revenue decline of 6.3% to $2.45 billion, reflecting a cautious approach from clients regarding early-stage R&D spending. The Manufacturing segment reported a revenue increase of 6.6% to $769.3 million, driven by growth in biologics quality-control testing services.
Operationally, the company reduced its workforce by approximately 8% since the end of 2023 as part of its restructuring efforts to align with current demand levels. As of December 28, 2024, Charles River employed around 20,100 individuals, with a significant portion of its workforce located in North America. The company also reported a backlog of approximately $2.0 billion in the DSA segment, down from $2.5 billion the previous year, indicating a decrease in anticipated future revenue from ongoing and upcoming projects.
Looking ahead, Charles River Laboratories remains focused on optimizing its global footprint and enhancing operational efficiencies to navigate the current market conditions. The company anticipates that the long-term value of strategic outsourcing will continue to drive demand for its services, despite the near-term challenges. Management is committed to implementing further restructuring actions and expects to achieve approximately $225 million in annualized cost savings as a result of these initiatives.
About CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.