Laboratorios Farmaceuticos Rovi (ROVI) Q1 2025 earnings summary

Executive summary

• Operating revenue in Q1 2025 rose 2% year-over-year to €154.9M, driven by 18% growth in specialty pharma and 24% in the heparin franchise, while CDMO sales declined 29% due to lower vaccine-related revenue and plant upgrades.

• Okedi® sales surged 133% year-over-year and 48% sequentially to €12.6M, with strong international expansion; bemiparin sales grew 38%.

• Net profit increased 21% to €18.1M, and EBITDA rose 17% to €30.3M, with EBITDA margin up 2.4pp to 19.6%.

• ROVI continues to invest in production capacity, R&D (notably ISM® technology), and internationalization, with new clinical trials for Letrozole SIE and quarterly risperidone set to begin in Q4 2025.

Financial highlights

• Gross margin improved by 1.8pp to 58.5%, mainly due to higher-margin Okedi® sales and a 28% drop in LMWH raw material prices.

• SG&A expenses rose 1% to €54.0M, while R&D expenses increased 2% to €6.2M; employee benefit costs up 8%, other operating expenses down 8%.

• Capex was €8.3M, focused on plant expansions, new filling lines, and ISM® industrialization; free cash flow rose 63% to €10.7M.

• Net debt decreased to €77.1M as of March 31, 2025, from €85.1M at year-end 2024; gross cash position increased to €31.2M.

• Cash flow from operating activities increased 21% to €18.8M.

Outlook and guidance

• Operating revenue for 2025 is expected to decrease by a mid-single-digit percentage compared to 2024, reflecting uncertainty in vaccine demand and CDMO recovery.

• Full-year enoxaparin sales are projected to decline slightly, while bemiparin sales are expected to grow modestly.

• Key growth levers include specialty pharma launches, LMWH franchise, new product licenses, and expanded CDMO capacity.

• Long-term targets include doubling CDMO sales and significant Okedi® global sales growth by 2030.