Novolog (NVLG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 11.6% YoY to ₪506.9m, while adjusted EBITDA including IFRS 16 fell 13% to ₪33.6m; SAP implementation disruption in logistics weighed on profitability.

• Healthcare logistics, health services and digital health each remained profitable on an adjusted EBITDA basis.

Financial highlights

• Gross profit including IFRS 16 was ₪31.6m, down 34.6%; operating profit was ₪3.4m versus ₪20.5m, and net income was ₪1.2m versus ₪13.2m YoY.

• Adjusted EBITDA including IFRS 16 was ₪33.6m versus ₪38.6m; adjusted EBITDA margin was 6.6% versus 8.5%.

• Cash stood at ₪111.2m at March 31, 2025; the balance sheet was described as strong and stable, with no debt.

Outlook and guidance

• Estimated 2025 profit impact from SAP-related disruption is ₪18m–₪22m, including ₪12.2m in one-time Q1 expense; most of the remaining impact is expected from lower ongoing revenue.

• Service and delivery levels returned to normal; priorities include retaining and winning customers and identifying logistics efficiencies.