Almirall (ALM) Q2 2024 earnings summary

Executive summary

• H1 2024 net sales reached €497.2 million, up 6.7% year-over-year, driven by strong European dermatology performance, especially from Ilumetri, Ebglyss, Klisyri, and Wynzora, with further launches planned.

• EBITDA totaled €104.5 million, a 3.2% increase year-over-year, in line with expectations.

• Net profit increased 28.1% to €15.4 million, supported by improved financial results and positive derivative valuations.

• Pipeline expansion continued with new rights acquisitions and regulatory milestones, including FDA approval for Klisyri large field.

• 2024 guidance reaffirmed: high single-digit net sales growth and EBITDA between €175 million–€190 million.

Financial highlights

• Net sales: €497.2 million (+6.7% YoY); operating income: €500.1 million (+7.0% YoY); EBITDA: €104.5 million (+3.2% YoY).

• Gross margin was 65.1%, slightly down from 2023 due to higher Ilumetri royalties, but improved sequentially in Q2.

• R&D expenses rose 8.2% to €56.8 million, representing 11.4% of net sales.

• SG&A expenses increased by 7.9% to €231.6 million, mainly due to Ebglyss launch investments.

• Net debt/EBITDA ratio stood at 0.4x as of June 30, 2024.

Outlook and guidance

• Full-year guidance reiterated, with expectations to reach the upper end of the range and high single-digit net sales growth.

• Anticipate continued growth from Ilumetri, Ebglyss, Klisyri, and Wynzora, with further launches planned in Europe.

• R&D spending expected to remain around 12% of net sales in the near term.

• Management remains focused on opportunistic M&A aligned with strategy and prudent financial management.

• R&D progress anticipated in early-stage projects and regulatory approvals, including Sarecycline in China.