NEUCA (NEU) Q1 2025 earnings summary

Executive summary

• Sales revenues grew 6.4% year-over-year in Q1 2025, reaching PLN 3.37 billion, with stable profitability and a 28.7% market share in pharmacy wholesale.

• Net profit declined 15.1% year-over-year to PLN 50.6 million, mainly due to negative financial results and subsidiary performance.

• All major business segments, including pharmaceuticals, medical operator, insurance, and clinical trials, reported revenue growth.

• The Group maintained high customer satisfaction (NPS 67) and expanded partnership programs, with 1,919 pharmacies participating.

• Clinical trials segment revenues rose 12% to PLN 117.2 million, though operating profit turned negative due to US expansion and project mix.

Financial highlights

• Gross profit on sales increased 7.7% year-over-year to PLN 390.7 million, with a margin of 11.6%.

• EBIT fell 7.7% to PLN 79.3 million, and EBITDA decreased 3.9% to PLN 110.5 million, with no one-time items affecting results.

• Net profit margin was 1.5% in Q1 2025, down from 1.9% in Q1 2024.

• Net cash from operating activities was PLN 102.7 million, up from PLN 60.1 million in Q1 2024.

• Net debt/EBITDA stood at 1.64 (1.77 excluding lease amortization); 1.93 including reverse factoring.

Outlook and guidance

• The Board recommends a dividend of PLN 16 per share for 2025, totaling approximately PLN 72.7 million.

• The Group expects continued growth in pharmaceuticals, medical services, and clinical trials, supported by demographic trends and regulatory changes favoring independent pharmacies.

• Ongoing cost pressures from energy, fuel, and wages are being managed through optimization and green solutions.

• No financial forecasts were published for 2025.