SOBI (SOBI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached SEK 5,442M, up 11% year-over-year (12% reported), with underlying growth of 26% excluding Doptelet China sales.

• Strategic portfolio accounted for 41% of sales, up 74% at CER, with strong contributions from Doptelet (+61% ex-China), Aspaveli/Empaveli (+77%), and Vonjo.

• Major pipeline milestones: Altuvoct approved in Europe, SEL-212 BLA submitted to FDA, Aspaveli approved in EU for 1L PNH, and Gamifant received FDA Fast Track Designation.

• Upgraded 2024 outlook: revenue to grow by low double-digit percentage at CER, with adjusted EBITA/EBITDA margin in the mid-30s percent.

• Robust cash flow from operations and continued focus on pipeline and product launches.

Financial highlights

• Q2 revenue: SEK 5,442M, up 11% at CER (12% reported); H1 revenue: SEK 11,698M, up 16%.

• Adjusted EBITA/EBITDA margin improved to 28% (from 26%); adjusted gross margin rose to 77% (from 71%).

• Operating cash flow reached SEK 2,329M, up 552% year-over-year.

• Net debt reduced to SEK 16,028M (from 19,265 at Dec 2023), with net debt/EBITDA at approximately 2x.

• EPS before dilution was SEK 0.66, down from SEK 0.71 year-over-year.

Outlook and guidance

• 2024 revenue expected to grow by a low double-digit percentage at constant exchange rates.

• Adjusted EBITA/EBITDA margin anticipated in the mid-30s percent of revenue.

• Growth in H2 expected to moderate due to tougher year-over-year comparisons.

• Continued high R&D activity expected into 2025, supporting launches and pipeline development.