EQL Pharma (EQL) investor relations material

Executive summary

• Achieved record quarterly sales of SEK 118.9 million, a 29% year-over-year increase, rebounding from prior supply chain challenges.

• Gross margin improved to 42%, and EBITA/EBITDA margin reached 21%, both showing recovery from previous disruptions.

• Supply chain improvements and better product availability, especially for Memprex, drove performance.

• Strategic focus shifting from rapid growth to profitability and operational efficiency.

• Two new management team members recruited to enhance international commercial and financial capabilities.

Financial highlights

• Net sales for Q3: SEK 118.9 million, up from SEK 92.2 million year-over-year; April–December: SEK 312.5 million, up from SEK 260.3 million.

• Gross margin increased to 42%; EBITA/EBITDA margin at 21%, below the 25% target but a significant rebound.

• Pipeline investments totaled nearly SEK 12 million in Q3, similar to last year.

• CapEx for the year expected to be SEK 65–70 million, lower than initial guidance due to project delays.

• Cash and cash equivalents at period end: SEK 72.7 million, up from SEK 15.6 million year-over-year.

Outlook and guidance

• Full-year growth outlook maintained at 15% with an EBITA/EBITDA margin target of 20%.

• Q4 expected to be strong in absolute terms, but year-over-year comparison is challenging due to a strong Q4 last year.

• Some scrapping of Covid-19 tests expected to negatively impact Q4 margins by 2–4 percentage points.

• Multiple major product launches planned for next year, including Memprex in France and Germany.

• No significant OpEx increase anticipated next year; cost-saving initiatives underway.