Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 113

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 113
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 $2,615,623 $(164,343)(6.3)%0.2 %Cost of revenue (excluding amortization of intangible assets)1,697,166 1,675,472 21,694 1.3 %Selling, general and administrative249,097 263,770 (14,673)(5.6)%Amortization of intangible assets62,507 70,305 (7,798)(11.1)%Operating income$442,510 $606,076 $(163,566)(27.0)%0.6 %Operating income % of revenue18.1 %23.2 %(510) bps

DSA revenue decreased $164.3 million primarily due to decreased revenue in our Safety Assessment and Discovery Services businesses due to decreased study volume driven by softer demand as a result of more cautious client spending in the biopharmaceutical environment, and the impact of a recently divested site related to our Safety Assessment business which contributed $8.5 million to the decrease; partially offset by the effect of changes in foreign currency exchange rates.

DSA operating income decreased $163.6 million compared to fiscal year 2023. DSA operating income as a percentage of revenue for fiscal year 2024 was 18.1%, a decrease of 510 bps from 23.2% for fiscal year 2023. Operating income and 

49

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

operating income as a percentage of revenue decreased primarily due to the lower revenue described above, as well as higher severance related to recent restructuring activities, adjustments to contingent consideration associated with the acquisition of Noveprim, and higher third-party legal costs and a $27 million inventory charge to cost of revenue incurred in connection with the investigations by the U.S. government into the non-human primate supply chain compared to the corresponding period in 2023.

Manufacturing

Fiscal Year20242023$ change% changeImpact of FX(in thousands, except percentages)Revenue$769,332 $721,443 $47,889 6.6 %(0.2)%Cost of revenue (excluding amortization of intangible assets)440,511 441,411 (900)(0.2)%Selling, general and administrative132,803 146,311 (13,508)(9.2)%Amortization of intangible assets52,471 45,392