Kamada (KMDA) Q2 2024 earnings summary

Executive summary

• Achieved strong financial and operational momentum in Q2 and H1 2024, with 18% year-over-year revenue growth and a 68% increase in adjusted EBITDA, validating the growth strategy focused on organic growth, M&A, plasma collection expansion, and late-stage clinical development.

• Growth was driven by increased U.S. market share for KEDRAB and higher demand for CYTOGAM, as well as expansion of the commercial portfolio and biosimilar launches.

• Four main growth pillars: commercial portfolio expansion, M&A, plasma collection centers, and phase 3 clinical trial for inhaled AAT.

• Continued progress in pivotal Phase 3 InnovAATe clinical trial for inhaled Alpha-1 Antitrypsin therapy.

• Cash position at Q2 2024 was $56.6M, supporting ongoing growth initiatives.

Financial highlights

• Q2 2024 revenue rose 13% year-over-year to $42.5M; H1 2024 revenue up 18% to $80.2M.

• Q2 2024 gross profit was $19.0M (45% margin), up from $14.4M (39%) in Q2 2023; H1 2024 gross profit was $35.7M (45% margin), up from $26.3M (39%).

• Adjusted EBITDA for Q2 was $9.1M (up 51% YoY); H1 Adjusted EBITDA was $16.6M (up 68% YoY), with a 21% margin.

• Q2 net income was $4.4M (8 cents/share), up from $1.8M (4 cents/share) YoY; H1 net income was $6.8M (12 cents/share), versus negligible prior year.

• Cash provided by operating activities was $15.0M in H1 2024; ended Q2 with $56.6M in cash.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $158–$162M; Adjusted EBITDA guidance at $28–$32M.

• Expect H2 2024 financial cadence consistent with H1 performance.

• Double-digit top and bottom line growth rates anticipated beyond 2024, supported by business development and M&A.

• Biosimilar portfolio in Israel expected to drive growth, with peak annual sales of $30–$34M.

• Inhaled AAT pivotal study and new plasma collection centers expected to contribute to future growth.