EQL Pharma (EQL) Q3 24/25 earnings summary

Executive summary

• Net sales for Oct–Dec 2024 reached SEK 92.2 million, up 31% year-over-year; operating profit (EBIT) rose 52% to SEK 14.8 million.

• Full-year sales growth for 2024/25 is projected at around 40%, in line with long-term targets.

• A significant acquisition of four niche original pharmaceuticals was completed, expected to add SEK 51 million in annual sales and SEK 28 million in EBITDA.

• Financing for the acquisition was secured via a heavily oversubscribed SEK 350 million bond issue.

Financial highlights

• Gross profit for Oct–Dec 2024 was SEK 37.7 million, up 13% year-over-year; gross margin declined to 41% from 48% due to higher transport costs.

• Operating margin for the quarter was 16% (14% last year); EBITDA margin was 19% (18%).

• Earnings per share before dilution were SEK 0.35 (0.22) for the quarter; SEK 1.03 (0.62) for Apr–Dec 2024.

• Cash flow from operating activities for the quarter was SEK 7.6 million; cash and cash equivalents at period end were SEK 15.6 million.

• Equity per share at period end was SEK 7.16, up from SEK 5.95 a year earlier.

Outlook and guidance

• Sales growth for the full year 2024/25 is forecasted at approximately 40%.

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

• New strategic plan and refined financial goals to be presented at the March 7, 2025 Capital Markets Day.