Company: CRL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001100682-25-000034
Chunk: 35

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 35
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 %Cost of revenue (excluding amortization of intangible assets)842,050 836,876 5,174 0.6 %Selling, general and administrative125,563 111,338 14,225 12.8 %Amortization of intangible assets26,292 31,442 (5,150)(16.4)%Operating income$216,733 $253,215 $(36,482)(14.4)%1.9 %Operating income % of revenue17.9 %20.5 %(260) bps

DSA revenue decreased $22.2 million primarily due to lower volume driven by continued cautious client spending as a result of the current demand environment, partially offset by the effect of changes in foreign currency exchange rates.

DSA operating income decreased $36.5 million compared to the corresponding period in 2024. DSA operating income as a percentage of revenue for the six months ended June 28, 2025 was 17.9%, a decrease of 260 bps from 20.5% for the corresponding period in 2024. Operating income and operating income as a percentage of revenue decreased primarily due to the lower revenue described above, restructuring activities, including asset impairments and site consolidation charges, and certain third-party legal costs incurred in connection with the investigations by the U.S. government into the non-human primate supply chain compared to the corresponding period in 2024.

Manufacturing

Six Months EndedJune 28, 2025June 29, 2024$ change% changeImpact of FX(in thousands, except percentages)Revenue$379,321 $377,510 $1,811 0.5 %0.1 %Cost of revenue (excluding amortization of intangible assets)217,023 218,378 (1,355)(0.6)%Selling, general and administrative66,448 66,660 (212)(0.3)%Amortization of intangible assets92,409 21,561 70,848 328.6 %Operating income$3,441 $70,911 $(67,470)(95.1)%(0.3)%Operating income % of revenue0.9 %18.8 %(1,790) bps

Manufacturing revenue increased $1.8 million primarily due to an increase in our Microbial Solutions business driven by higher product revenue associated with endotoxin product