EQL Pharma (EQL) Q2 24/25 earnings summary

Executive summary

• Net sales for Q2 2024/25 rose 43% year-over-year to SEK 85.2 million, with operating profit (EBIT) up 117% to SEK 14.3 million and an operating margin of 17%.

• Growth was driven by recent product launches and sales of previously backordered antibiotics, despite logistical challenges in the Red Sea impacting gross margin.

• No new products were launched in the quarter, but four new generics were added to the pipeline, now totaling 35 development projects.

• Mellozzan received marketing approval in Switzerland, with launches ongoing in several European countries and preparations underway for the UK.

Financial highlights

• Q2 net sales: SEK 85.2 million (up 43% year-over-year); gross profit: SEK 34.7 million (up 45%); EBIT: SEK 14.3 million (up 117%).

• Gross margin for Q2 was 41% (40% last year); EBITDA margin was 20% (14%).

• Earnings per share before and after dilution: SEK 0.33 (SEK 0.16 last year).

• Cash flow from operations for Q2: SEK 1.4 million (SEK 1.0 million last year); cash and cash equivalents at quarter-end: SEK 11.8 million.

• For April–September 2024, net sales: SEK 168.0 million (up 45%); EBIT: SEK 29.6 million (up 104%); EPS: SEK 0.69 (SEK 0.40 last year).

Outlook and guidance

• Projected sales growth for full year 2024/25 is around 40%, in line with the company’s five-year plan.

• Targeting an EBITDA margin of at least 25% in the last quarter of 2024/25.

• Number of product launches for 2025/26 adjusted downward due to longer regulatory lead times, but no significant negative impact on next year’s growth expected.