EQL Pharma (EQL) investor relations material

Executive summary

• Achieved record quarterly sales of nearly SEK 190 million, a 29% year-over-year increase, rebounding from Q2 stock-outs and inventory issues.

• EBITDA grew by 44% to SEK 24.9 million, with gross margin at 42% and EBITA margin at 21%, reflecting improved supply and margin management.

• Supply issues persisted for some products in Q3 but are expected to ease in Q4, with several products returning to stock.

• Significant launches and process upgrades are planned for next year, aiming to support growth and operational resilience.

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

Financial highlights

• Net sales for Q3 reached nearly SEK 190 million, up 29% year-over-year, setting a new quarterly record.

• Gross margin reached 42%, up from previous quarters, though still below long-term targets.

• EBITDA margin was 21% in Q3, up from 19% year-over-year.

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

• CapEx for the year is now expected at SEK 65–70 million, down from earlier guidance due to project delays.

Outlook and guidance

• Full-year sales growth outlook remains at 15%, with EBITDA margin expected around 20%.

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

• Multiple major launches, including Memprex in France and Germany, are planned for next year, supporting growth ambitions.

• OpEx increases are expected to be marginal next year, with most investments already made.

• Some scrapping of Covid-19 tests expected to negatively impact Q4 by 3–4 percentage points.