Company: CRL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001100682-25-000034
Chunk: 31

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 31
---
Manufacturing

Three Months EndedJune 28, 2025June 29, 2024$ change% changeImpact of FX(in thousands, except percentages)Revenue$200,835 $192,309 $8,526 4.4 %1.5 %Cost of revenue (excluding amortization of intangible assets)110,026 110,498 (472)(0.4)%Selling, general and administrative32,416 33,813 (1,397)(4.1)%Amortization of intangible assets46,332 10,768 35,564 330.3 %Operating income$12,061 $37,230 $(25,169)(67.6)%0.5%Operating income % of revenue6.0 %19.4 %(1,340) bps

Manufacturing revenue increased $8.5 million primarily due to increased revenue in our Microbial Solutions business, driven by an increase in identification services revenue and endotoxin product revenue and the effect of changes in foreign currency exchange rate; partially offset by lower revenue for Biologics Testing services.

Manufacturing operating income decreased $25.2 million during the three months ended June 28, 2025 compared to the corresponding period in 2024. Manufacturing operating income as a percentage of revenue for the three months ended June 28, 2025 was 6.0%, a decrease of (1,340) bps from 19.4% for the corresponding period in 2024. Operating income and operating income as a percentage of revenue decreased primarily due to accelerated amortization expense as a result of a decrease in the remaining useful life of certain client relationships due to a loss of key customers within the CDMO business, and restructuring activities, including asset impairments and site consolidation charges, compared to the corresponding period in 2024; partially offset by the higher revenue described above.

Unallocated Corporate

Three Months EndedJune 28, 2025June 29, 2024$ change% changeImpact of FX(in thousands, except percentages)Unallocated corporate$70,494 $53,902 $16,592 30.8 %0.7 %Unallocated corporate % of revenue6.8 %5.3 %150 bps

Unallocated corporate costs consist of selling, general and administrative expenses that are not directly related or allocated to the reportable segments. The increase in unallocated