Lavipharm (LAVI) Q2 2024 earnings summary

Executive summary

• Consolidated sales for H1 2024 reached €26.3m, up 1.6% year-over-year, with gross profit at €12.1m, up 0.4% from H1 2023.

• Net profit after tax surged to €7.7m, mainly due to a €5.7m deferred tax asset recognized on the impairment of subsidiaries.

• Adjusted EBITDA from continuing and discontinued operations was €5.9m, slightly down from €6.1m in H1 2023, impacted by non-cash stock option expenses.

• Major product launches included locally produced medical cannabis and new pharmaceuticals (Lonarid N®, Lonalgal®, Flagyl®) acquired in late 2023, with sales starting in May–June.

• Discontinued third-party logistics operations and initiated liquidation of two subsidiaries.

Financial highlights

• Group sales: €26.3m (H1 2024) vs €25.9m (H1 2023), +1.6%.

• Gross profit: €12.1m vs €12.0m, +0.4%.

• Net profit after tax: €7.7m vs €2.2m, driven by deferred tax asset recognition.

• Adjusted EBITDA: €5.9m vs €6.1m; impacted by non-cash stock plan expenses.

• Net debt/borrowing: €22.5m as of June 30, 2024.

Outlook and guidance

• Strategic focus on expanding sales of transdermal clonidine patch in Italy and other EU markets.

• Full potential of newly acquired products and investments expected to be realized in H2 2024.

• Ongoing investment in new product development, production capacity, and international expansion.

• Extended partnership with Tikun Olam for medical cannabis distribution until December 2033.

• Plans for further product launches in Consumer Health and generics.