Faes Farma (FAE) Q3 2024 earnings summary

Executive summary

• Revenue growth continues in Q3, driven by strong Pharma performance in Spain and international markets.

• Positive cash generation after dividend payment and near completion of new industrial plant investments.

• R&D milestones include approvals for calcifediol in multiple countries and positive clinical trial results for Mesalazine.

• Senior management changes with the creation of a Global Executive Team following the new CEO's appointment.

Financial highlights

• Total income reached €392.9M, up 8.5% year-over-year for the first nine months of 2024.

• EBITDA rose 7.6% to €109.5M; EBIT increased 8% to €94.4M; net profit grew 7.7% to €79.8M.

• Ordinary sales income up 10.6% to €379.5M; gross margin improved 8.8% to €270.2M.

• Personnel expenses increased 12.4% due to higher salaries and management reorganization.

• Cost of sales contained due to improved sales mix and lower supply prices.

Outlook and guidance

• Expecting to end 2024 at the high end of forecast ranges for both revenues and EBITDA.

• Projected total income growth of 6–8% and EBITDA growth of 3–5% versus 2023.

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

• Mid-single-digit growth expected in Spain's Medical Visit, Healthcare, and Consumer businesses.

• Key impacts include increased personnel costs, yen depreciation, and end of bilastine exclusivity in Canada.