ALK-Abelló (ALK) Q1 2025 earnings summary

Executive summary

• Q1 revenue grew 12% to DKK 1,522 million, with double-digit growth in all regions and 22% increase in tablet sales, driven by higher volumes and strong shipments to Japan.

• EBIT increased by 50% to DKK 469 million, with a margin of 31%, supported by cost savings and last year's optimization initiatives.

• Pediatric tablet launches and new indications contributed to growth, with strong initial market response and over 1,000 prescribers initiating treatment for children.

• Strategic progress made in respiratory allergy, neffy® rollout, and food allergy, with peanut program advancing to phase II.

• Free cash flow nearly tripled to DKK 330 million, providing financial flexibility for future partnerships and pipeline expansion.

Financial highlights

• Revenue up 12% year-over-year to DKK 1,522 million, driven by tablet sales.

• Gross profit reached DKK 1,016 million, with a gross margin of 67%, up from 66% last year.

• EBIT rose 50% to DKK 469 million; EBIT margin increased from 23% to 31%.

• Free cash flow: DKK 330 million (up from DKK 111 million); cash flow from operations: DKK 389 million.

• Net debt to EBITDA ratio reduced to 0.2; equity ratio stable at 69%.

Outlook and guidance

• Full-year 2025 revenue projected to grow 9–13%, mainly from higher volumes in all regions and product lines.

• EBIT margin forecast to rise by 5 percentage points to around 25%; gross margin to improve slightly.

• Double-digit tablet sales growth expected; neffy® to contribute from H2, with minor impact from new U.S. co-promotion agreement.

• R&D expenses to remain at ~10% of revenue; sales and admin costs to rise slightly due to neffy®.

• No one-off optimization costs included in guidance; 2025 expected to mark the seventh consecutive year of revenue and earnings growth.