Vistin Pharma (VISTN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was NOK/MNOK 106, nearly flat year-over-year, with currency-neutral revenue up 1%.

• Record-high Q2 EBITDA of NOK/MNOK 27, up 40% from Q2 2023, driven by favorable product mix, lower material costs, and cost control.

• Net profit for Q2 was NOK/MNOK 19.2, positively impacted by NOK/MNOK 2.5 in unrealized FX gains.

• Year-to-date revenue reached NOK/MNOK 210, and EBITDA NOK/MNOK 48, both showing growth over the prior year.

• Cash dividend of NOK 0.50 per share paid in June; another NOK 0.50 planned for Q4.

Financial highlights

• Q2 sales volume was 1,250–1,280 tons, up 4% year-over-year; year-to-date sales volume nearly 2,500 tons, affected by Q1 production stop.

• Gross margin reached 64% in Q2, exceeding the 60% target and up from prior periods.

• EBIT for Q2 was NOK/MNOK 22.3 after NOK 5 million in depreciation.

• Net profit for Q2 was NOK/MNOK 19.2, up from NOK/MNOK 7.1 in Q2 2023.

• Equity ratio at 73% as of June 2024, reflecting strong financial position.

Outlook and guidance

• Metformin market expected to grow 4–6% CAGR; company well positioned for growth as new capacity is utilized.

• Sales prices and volumes for the rest of 2024 are already booked.

• Freight prices expected to rise due to Suez Canal disruptions, but production remains unaffected due to safety stock.

• Long-term renewable energy agreement with Statkraft ensures stable, green power supply until 2032.

• Company aims to ramp up production to 7,000MT annual output and expand customer base.