Laboratorios Farmaceuticos Rovi (ROVI) Q4 2024 earnings summary

Executive summary

• Operating revenue declined 7.9% to €763.7M in 2024, mainly due to lower CDMO revenues from reduced COVID-19 vaccine manufacturing and plant preparation activities for Moderna.

• Specialty pharma sales grew 2% to €427.5M, with Okedi® sales doubling to €28.8M and Neparvis® up 13%.

• EBITDA decreased 15% to €207.4M, and net profit dropped 20% to €136.9M.

• Gross margin improved by 3.7 points to 62.7%, driven by higher-margin specialty pharma and reduced low-margin CDMO activities.

• ESG performance improved, ranking fifth globally in the pharmaceutical sector by Sustainalytics.

Financial highlights

• CDMO sales declined 18% to €336.2M, reflecting lower COVID-19 vaccine-related revenues.

• SG&A expenses increased 12% to €245.2M, mainly due to wage increases and Okedi's European launch.

• R&D expenses rose 3% to €25.8M, reflecting ongoing clinical trials and new product development.

• Free cash flow increased 27% to €76.2M; cash flow from operating activities up 22% to €138.3M.

• CapEx rose 13% to €62.2M, focused on facility investments and new filling lines.

Outlook and guidance

• 2025 operating revenue expected to decrease by a mid-single-digit percentage versus 2024.

• Flat or slightly declining enoxaparin sales expected; Bemiparin to see growth, especially from China, Greece, and Turkey.

• Ex-Moderna CDMO sales expected to slightly decrease in 2025 due to production timing shifts.

• Gross margin expected to benefit by 2-3 percentage points in 2025 from lower heparin raw material prices.

• SG&A projected to grow mid-single-digit in 2025; R&D growth dependent on clinical trial progress.