Why did CRL's operating profit drop sharply in Q4 2024?

Charles River Laboratories' (CRL) operating profit dropped sharply in Q4 2024 due to a combination of factors: 1. **Revenue Decline**: The company's revenue decreased by 1.1% year-on-year to $1.00 billion. This decline, although modest, contributed to the overall financial performance. 2. **Increased Expenses**: The company's operating income was negatively impacted by increased expenses. For instance, the cost of labor and services rose significantly. This increase in costs likely led to a compression of profit margins. 3. **Regulatory and Macro Pressures**: Charles River has faced significant regulatory and macro pressures, which could have affected its operational efficiency and profitability. The impact of these pressures might have been more pronounced in Q4 2024, contributing to the drop in operating profit. In summary, the decline in CRL's operating profit in Q4 2024 was likely a result of a combination of factors including revenue decline and increased expenses, with regulatory and macro pressures possibly playing a role.