Grifols (GRF) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 9.3% at constant currency to €1,818 million, driving H1 2024 revenue to €3,444 million, up 7.5% year-over-year, with all business units contributing.

• Adjusted EBITDA rose 28% at constant currency to €441 million in Q2, with a 24.2% margin; H1 adjusted EBITDA reached €791 million (23.0% margin), up 24.1% year-over-year.

• Net profit turned positive at €36.3 million in H1 2024, a €106 million improvement year-over-year, despite higher financial expenses.

• Completed sale of a 20% stake in Shanghai RAAS for €1.6 billion, with proceeds used to reduce debt and leverage ratio declining to 5.5x.

• Seamless CEO transition, new CFO joining September 2024, and enhanced governance with a streamlined executive committee.

Financial highlights

• H1 2024 total revenue: €3,444 million (+7.5% cc year-over-year); Q2 revenue: €1,818 million (+9.3% cc year-over-year).

• Adjusted EBITDA: €441 million in Q2 (+27.9% cc), €791 million in H1 (+24.1% cc); adjusted EBITDA margin: 24.2% in Q2, 23.0% in H1.

• Gross margin for H1 2024: 37.8%, up from 36.0% in H1 2023.

• Free cash flow: €57 million in Q2; H1 2024 FCF: €(196)m excluding SRAAS proceeds, €1,349 million including SRAAS transaction.

• Liquidity position: €915 million (excluding SRAAS proceeds); cash on hand: €568 million as of June 30, 2024.

Outlook and guidance

• Reaffirmed 2024 guidance: total revenue growth above 7%, Biopharma revenue growth 8–10%, adjusted EBITDA above €1,800 million, and adjusted EBITDA margin of 25–26%.

• Positive free cash flow for 2024 remains the target, with further improvement expected in 2025.

• Target leverage ratio of 4.5x by year-end, supported by business performance and cash flow improvements.

• Plasma supply expected to remain strong, with cost per liter stabilized and further efficiency gains anticipated.