EQL Pharma (EQL) Q1 26/27 earnings summary

Executive summary

• Net sales for Q1 2026/27 were SEK 106.9m, flat year-over-year, with gross margin dropping to 17% (35% excluding SEK 20m scrapping/write-downs), and EBITDA margin at -6% (12% adjusted); OPEX increased to SEK 31.5m.

• The quarter was impacted by scrapping in the hospital segment due to overestimated demand and supply disruptions, but management expects recovery as inventory and stock-out issues are resolved.

• Management maintains a 15% full-year sales growth outlook, expecting improvements in Q2 and Q3 as inventory and order book improvements support recovery.

• The product portfolio expanded to 49, with 44 in the pipeline, and several launches and approvals are planned for the remainder of the year in multiple markets.

• Cash position at quarter-end was SEK 61.1m, with unutilized credit of SEK 26–27m.

Financial highlights

• Net sales: SEK 106.9m (SEK 107.2m last year), 0% growth; gross margin: 17% (43% last year), 35% excluding scrapping/write-downs.

• EBITDA margin: -6% (24% last year), adjusted 12%; OPEX: SEK 31.5m, up from SEK 25.7m.

• CapEx was SEK 16–16.2m, much lower than the same quarter last year.

• Operating profit (EBIT): SEK -13.6m (SEK 20.5m last year); earnings per share: SEK -0.57 (SEK 0.34 last year).

• Cash flow from operations: SEK -10.3m (SEK -3.2m last year).

Outlook and guidance

• Full-year sales growth guidance remains at 15%, requiring strong performance in Q2–Q4; long-term targets to be reassessed in autumn.

• Inventory levels have improved, reducing stock-outs and supporting optimism for Q2 and Q3.

• Order books for key products Memprex and Mellozzan are strong for the rest of the year.

• Launch challenges are seen as temporary, with less complex products in the future pipeline.

• Targeting seven launches in 2026/27, then 10–15 per year.