Grifols (GRF) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record results, with revenue, EBITDA, and free cash flow all ahead of plan, building on 2024’s momentum and providing a strong foundation for the year.

• Revenue and EBITDA growth were driven by all business units, especially Biopharma's IG franchise, with net revenues rising 7.4% year-over-year to €1,786 million.

• Adjusted EBITDA increased 14.2% to €400 million, with margin improvement to 22.4%.

• Group profit surged 179% to €60 million compared to Q1'24.

• The company remains focused on deleveraging, free cash flow improvement, operational excellence, and advancing R&D and portfolio optimization initiatives.

Financial highlights

• Q1 2025 revenue reached €1,786 million, up 7.4% year-over-year on a constant currency basis; like-for-like revenue grew 10%.

• Adjusted EBITDA was €400 million, up 14.2% year-over-year; like-for-like EBITDA grew nearly 22%.

• Adjusted EBITDA margin improved by 80 basis points to 22.4% year-over-year.

• Profit before tax and group profit increased by 145% and 179%, respectively, year-over-year.

• Free cash flow pre-M&A improved by €209 million, mainly due to working capital management.

Outlook and guidance

• Guidance for 2025 is reaffirmed, with management maintaining a prudent approach amid macroeconomic and policy uncertainties.

• Sustained revenue growth is expected for 2025, led by immunoglobulin (IG) and supported by albumin, Alpha-1, and specialty proteins.

• Subcutaneous IG is projected to continue gaining share, and albumin revenue is expected to rebound after a temporary Q1 license renewal impact in China.

• Cost-per-liter and yield improvement initiatives are expected to further enhance margins.

• On track to launch Fibrinogen in Europe in Q4 2025 and in the U.S. in H1 2026, pending FDA approval.