Almirall (ALM) Q3 2024 earnings summary

Executive summary

• Net sales grew 7.9% year-over-year to €727.6 million for the first nine months of 2024, driven by strong European dermatology performance, especially IlumetriⓇ and EbglyssⓇ, and successful product launches.

• EBITDA rose 2.9% to €142.2 million, in line with expectations, despite higher SG&A and R&D costs.

• IlumetriⓇ net sales grew 24.8% to €152.5 million; EbglyssⓇ achieved €20.4 million in its first full reporting period, mainly from Germany.

• 2024 guidance is reaffirmed, reflecting confidence in continued growth and execution.

• Pipeline progress includes launches, regulatory milestones, and new asset acquisitions in dermatology.

Financial highlights

• Net sales: €727.6 million (+7.9% YoY); EBITDA: €142.2 million (+2.9% YoY); gross margin: 64.8%.

• SG&A expenses increased 9% to €345 million, mainly due to EbglyssⓇ launch investments and salary pressures.

• R&D investment rose 14.9% year-over-year to €90.1 million, representing 12.4% of net sales.

• Net debt-to-EBITDA ratio stands at 0.3x, supporting future licensing or bolt-on M&A.

• Net income was €7.2 million, down 47.1% year-over-year, mainly due to higher operating expenses.

Outlook and guidance

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

• Sales growth is expected to accelerate in 2025, with margin accretion anticipated.

• Mid-20s EBITDA margin targeted within three to four years as SG&A growth moderates.

• EbglyssⓇ peak sales guidance remains at €450 million.

• Continued focus on pipeline development and inorganic growth opportunities.