Laboratorios Farmaceuticos Rovi (ROVI) Q3 2024 earnings summary

Executive summary

• Operating revenue for the first nine months of 2024 was €564.6 million, down 5% year-over-year, mainly due to lower CDMO revenues from COVID-19 vaccine manufacturing and plant preparation activities for Moderna.

• Okedi® sales surged 126% to €20.3 million, Neparvis® sales rose 13% to €38.1 million, and bemiparin sales increased 6%, while the heparin franchise declined 2%.

• Gross margin improved by 4.7 percentage points to 63.6%, driven by higher-margin products and reduced low-margin CDMO activities.

• Net profit decreased by 4% to €113.5 million, with EBITDA down 2% to €167.2 million and EBIT down 4% to €146.6 million.

• Decision made not to launch Risvan® in the U.S. due to commercial, regulatory, and market challenges; focus shifted to European Okedi® and CDMO business.

Financial highlights

• Operating revenue: €564.6 million (-5% YoY); Specialty pharma up 1% to €311.4 million, CDMO down 12% to €253.2 million.

• Gross profit: €359.0 million (+2% YoY); gross margin: 63.6% (+4.7 pp).

• EBITDA: €167.2 million (-2% YoY); EBITDA margin: 29.6% (+0.8 pp).

• Net profit: €113.5 million (-4% YoY); net margin: 20.1% (+0.1 pp).

• CapEx totaled €33.8 million, focused on facility expansion, ISM industrialization, and new production lines.

Outlook and guidance

• Operating revenue expected to decrease by a mid-single-digit percentage in both 2024 and 2025 compared to prior years.

• Guidance reflects lower expected revenue from CDMO adaptation works and conservative assumptions on new client contributions.

• SG&A expected to grow at a low single-digit rate in 2025, with continued investment in R&D and Okedi® launches.

• Okedi® global sales potential estimated at €100–200 million in coming years.

• Uncertainty remains regarding future vaccine demand and the impact of ongoing capacity expansions in CDMO.