Almirall (ALM) Q2 2024 earnings summary

Executive summary

• Net sales grew 6.7% year-over-year to €497.2 million in H1 2024, driven by robust European dermatology performance, especially biologics like Ilumetri and Ebglyss, with further launches expected.

• EBITDA increased 3.2% to €104.5 million, with net income up 28.3% 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 and agreements with Novo Nordisk and Eloxx.

• Dividend paid as a flexible dividend, with 91.5% of shareholders opting for new shares.

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

Financial highlights

• Operating income reached €500.1 million, up 7.0% year-over-year, with gross margin at 65.1%.

• EBITDA totaled €104.5 million (+3.2% YoY); net income: €15.4 million (+28.3% YoY); normalized net income: €17.8 million (+53.1% YoY).

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

• 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.