Laboratorios Farmaceuticos Rovi (ROVI) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 2026 was €152.5 million, down 1.5% year-over-year, with total revenue stable at €154.7 million, mainly due to weaker heparin franchise performance.

• Gross profit rose 5% to €95.0 million, with gross margin improving by 3.8 percentage points to 62.3%.

• CDMO business grew 5% to €37.4 million, but full-year growth expectations have been revised down due to contract delays and demand uncertainty.

• Specialty pharma declined 3% year-over-year, but Okedi® sales surged 37% year-over-year and 10% sequentially.

• Acquisition and integration of the Phoenix, Arizona facility completed in April 2026, strengthening U.S. manufacturing and CDMO capabilities.

Financial highlights

• EBITDA fell to €20.3 million (13.3% margin), down from €30.3 million (19.6%) in Q1 2025.

• EBIT dropped to €12.1 million (8.0% margin), and net profit declined to €9.4 million.

• SG&A expenses increased 18% to €63.6 million, driven by higher personnel costs, new hires, and non-recurring write-offs.

• R&D expenses rose 79% to €11.2 million, mainly for phase III clinical trial preparations.

• CapEx in Q1 was €7.7 million; free cash flow was €5.6 million.

Outlook and guidance

• Operating revenue for 2026 expected to grow by a low- to mid-single-digit percentage versus 2025, but guidance revised down due to delayed manufacturing ramp-up and competitive pressures.

• LMWH sales projected to decline by a high single-digit percentage in 2026 due to lower partner orders and pricing pressure.

• SG&A (excluding Phoenix/US subsidiary) expected to rise mid- to high-single-digit percentage in 2026.

• R&D costs for 2026 projected near €60 million, at the higher end of previous guidance.

• Long-term CDMO sales target of €700 million by 2030 remains unchanged.