Faes Farma (FAE) Q3 2024 earnings summary

Executive summary

• Revenue growth continued in Q3 2024, 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 appointment of a new CEO.

Financial highlights

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

• EBITDA was €109.5M (+7.6%), EBIT €94.4M (+7.8%), and net profit €79.8M (+7.7%) compared to the same period last year.

• Ordinary sales income grew 10.6% year-over-year; gross margin improved by 8.8%.

• Cost of sales increased 8%, while personnel expenses rose 12.4% due to higher salaries and management reorganization.

• Growth in margins (EBITDA, EBIT, PBT) slightly exceeded expectations.

Outlook and guidance

• Year-end expected at the high end of 2024 forecast range for both revenues and EBITDA.

• Guidance: total income growth of 6–8% and EBITDA growth of 3–5% vs. 2023.

• Double-digit growth anticipated in LATAM & OMA regions and for 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.