Lavipharm (LAVI) Q2 2025 earnings summary

Executive summary

• Consolidated sales from continuing operations rose 5.7% year-over-year to €31.0m; after rebates and clawbacks, sales were €26.7m, up 6.8% from H1 2024.

• Gross profit slightly decreased by 1.6% to €12.4m, while pre-tax profit was €3.3m, nearly flat year-over-year.

• Net profit dropped to €2.6m from €7.7m due to a one-off deferred tax asset in H1 2024; excluding this, net profit rose 32%.

• Adjusted EBITDA for the Group increased 29.4% to €7.7m; margin improved to 28.5%.

• Major events: sale of Pharma PLUS subsidiary, strategic agreement with iNova Pharmaceuticals, new transdermal production line, and sale of investment property.

Financial highlights

• Group sales: €26.7m (H1 2025) vs €25.0m (H1 2024); gross profit: €12.4m vs €12.7m.

• Group net profit: €2.6m vs €7.7m; Company net loss: €1.0m vs profit €7.8m.

• Adjusted EBITDA: Group €7.7m (28.5% margin), Company €2.0m (13.0% margin).

• EBIT margin: Group 15.5%, Company -1.2%.

• Net debt: Group €27.5m, Company €21.6m.

• Dividend of €0.02/share approved post-period.

• Stock option and award plan valuation impacted EBITDA by €480k, lower than €675k in H1 2024.

Outlook and guidance

• Full-year Company sales expected to match 2024 levels despite H1 delays in international sales.

• International sales expected to increase significantly in H2 2025 based on current orders.

• Substantial growth anticipated in the pharmaceutical cannabis sector in the second half.

• Strategic focus on international expansion, new product launches, and leveraging new production capacity.

• New OTC antiseptic product launch in Q4 2025 via iNova partnership.