Faes Farma (FAE) Q2 2024 earnings summary

Executive summary

• Total revenue reached €273.6M (+8% to +8.2% YoY), driven by strong performance in Spain and international markets.

• International revenues now represent 58% of total, with robust growth in both Spain and abroad.

• Cash generation improved as major industrial investments near completion; dividend payments in January and July will impact Q3 cash.

• Key product approvals: weekly calcifediol in 19 European countries, monthly in Australia and Greece; innovation advances in mesalazine and new product development.

• Gross investments exceeded €20M, significantly lower than 2023 as plant construction nears completion.

Financial highlights

• Ordinary revenues: €261.2M (+10.6% YoY); total revenues: €273.6M (+8% YoY); EBITDA: €78.5M (+10% YoY); EBIT: €68.4M (+10% YoY); Net income: €58.3M (+10% YoY).

• International revenue rose 11% to €157.9M; top 3 molecules contributed €111.7M (+7%).

• Gross margin increased 8.8% to €190.4M; operating expenses grew in line with revenue.

• Net cash position: €60.7M (+77.1% YoY); operating cash flow: €56.4M (+8.9% YoY); gross investment: €20.7M (-66.4% YoY).

• Basic EPS: €0.187 (vs. €0.172 in H1 2023).

Outlook and guidance

• 2024 guidance maintained: total revenue growth of 6–8%, EBITDA growth of 3–5%.

• Continued cash generation expected as major industrial investments conclude.

• Dividend policy shifted to fully cash payments; July dividend will impact Q3 cash.

• Double-digit growth expected in LATAM & OMA regions and in calcifediol and mesalazine licenses.

• Anticipated improvement in animal nutrition segment in H2 2024.