Pharmanutra (PHN) H1 2025 earnings summary

Executive summary

• Consolidated revenues for H1 2025 reached €61.9 million, up 10.4% year-over-year, with net profit at €9.2 million and EPS at €0.96.

• Growth was driven by both domestic (+9%) and foreign markets (+13%), with new initiatives in the USA, Spain, and Cetilar® Nutrition contributing marginally but showing strong potential.

• Operating margin and EBITDA margin were slightly reduced due to €4 million in development costs for new projects; adjusted EBITDA margin would have been about 32%.

• Net financial position turned negative at -€5.1 million, mainly due to dividend distribution, Akern's earn-out payment, and working capital changes.

• Dividend distribution and Akern's earn-out payment significantly impacted the net financial position.

Financial highlights

• EBITDA reached €16.5 million, up 1.6% year-over-year, with a margin of 26.6% on net revenues; adjusted EBITDA margin would be about 32%.

• Net result margin stood at 14.8% of net revenues.

• Operating expenses rose in line with higher revenues, mainly due to investments in new subsidiaries and marketing.

• Net working capital increased to €22.4 million from €13.3 million at year-end 2024.

• Capital expenditures totaled €1.4 million, mainly in R&D and intangible assets.

Outlook and guidance

• Organic growth is expected to continue in 2025, with substantial revenue increases anticipated in the US and China.

• Margins are projected to remain stable, with ongoing investments in new projects and R&D expected to slightly reduce margins in 2025 and beyond.

• Revenue development anticipated in the American and Chinese markets, with minimal impact from new EU-US customs duties.

• Geopolitical and macroeconomic uncertainties are acknowledged, but no significant impact on business is expected.