Eckert & Ziegler (EUZ) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 17% year-over-year to €215.5 million, driven by strong growth in both Medical and Isotope Products segments.

• Adjusted EBIT increased 24% to €46.7 million, with margin reaching 22% and EPS from continuing operations at €1.40.

• Medical segment exceeded €100 million in sales for the first time in nine months, with 26% growth; Isotope Products up 10%.

• Major operational highlights include European approval for GalliaPharm®, expansion of CMO activities, and the opening of a new engineering facility in Dresden.

• The Pentixapharm spin-off became legally effective in October 2024, separating it from the combined results.

Financial highlights

• Net sales increased 17% year-over-year to €215.5 million; FX-adjusted growth was 20%.

• Radiopharmaceuticals segment grew 42% year-over-year; Medical up 26%, Isotope Products up 10%.

• Adjusted EBIT up 24% to €46.7 million; net income impacted by hyperinflation in Argentina and currency effects.

• Gross profit increased to €106.9 million, with margin improvements despite higher depreciation and personnel costs.

• Cash and cash equivalents rose to €97.6 million, with loan liabilities reduced to €21.5 million and equity ratio at 52%.

Outlook and guidance

• 2024 guidance reaffirmed: expected revenue of €265 million and adjusted EBIT of €55 million.

• Order book for early next year is full and production at capacity; radiopharmaceutical sales expected to reach €150 million by year-end.

• Generator business expected to remain a key growth driver, with further expansion into Japan and China anticipated by 2026.

• Product mix in Isotope Products expected to weaken in Q4, with full-year gross margin anticipated at 2023 levels.

• No risks identified that threaten the company’s continued existence.