Prenetics Global Limited's (NASDAQ:PRE) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at Prenetics Global Limited's (NASDAQ:PRE) future prospects. Prenetics Global Limited, a health sciences company, focuses on advancing consumer health in Hong Kong, the United States, and internationally. The US$172m market-cap company posted a loss in its most recent financial year of US$46m and a latest trailing-twelve-month loss of US$51m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Prenetics Global will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Prenetics Global is bordering on breakeven, according to some American Healthcare analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$32m in 2027. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 112% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Prenetics Global's upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Prenetics Global

Before we wrap up, there’s one aspect worth mentioning. Prenetics Global currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Prenetics Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – Prenetics Global's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Historical Track Record: What has Prenetics Global's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Prenetics Global's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.