Faes Farma (FAE) Q2 2024 earnings summary

Executive summary

• Revenue growth continued in Q2 2024, with net sales reaching €261.2M, up nearly 11% year-over-year, and total revenues at €273.6M, exceeding guidance, driven by strong Pharma performance in Spain and international markets.

• International revenues now represent 58% of total, reflecting robust growth both domestically and abroad.

• Solid cash generation as industrial investments near completion; gross investments exceeded €20M, significantly lower than 2023.

• R&D milestones include approvals for calcifediol in Europe, Australia, and Greece, and progress in mesalazine and methocarbamol innovation.

• Shareholder remuneration included €12.1M interim dividend in January and €36M paid in July.

Financial highlights

• Total income reached €273.6M, up 8% year-over-year; ordinary revenues were €261.2M (+10.6% YoY).

• EBITDA rose 10% to €78.5M; EBITDA margin stable at 30.1%.

• Net profit increased 10% to €58.3M compared to H1 2023; basic EPS was €0.187.

• Gross margin improved 8.8% to €190.4M, slightly outpacing revenue growth.

• Cash at June 30, 2024, stood at €60.7M, up from €34.6M at year-end 2023.

Outlook and guidance

• 2024 guidance targets 6–8% total income growth and 3–5% EBITDA growth versus 2023.

• Continued cash generation expected as major industrial investments conclude.

• Double-digit growth expected in LATAM and MEA regions, and for calcifediol and mesalazine licenses.

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

• Anticipated improvement in animal nutrition segment in H2 2024.