Vistin Pharma (VISTN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NOK 106 million, nearly flat year-over-year, with currency-neutral growth of 1%.

• Record-high EBITDA of NOK 27.3 million in Q2 2024, up 40% from Q2 2023, driven by favorable product mix, lower material costs, and cost control.

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

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

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

Financial highlights

• Q2 2024 operating result (EBIT) was NOK 22.3 million, up from NOK 15.3 million in Q2 2023.

• Gross margin reached 64% in Q2, exceeding the 60% target and up from 23% to 26% margin year-over-year.

• Sales volume in Q2 was 1,250–1,280 tons, up 4% year-over-year; year-to-date volume at 2,500 tons, impacted by Q1 production stop.

• Net profit for Q2 2024 was NOK 19.2 million, up from NOK 7.1 million in Q2 2023.

• Profit before tax was NOK 24.6 million; taxes remain non-payable due to deferred tax assets.

Outlook and guidance

• Metformin market expected to grow at a 4%-6% CAGR; company well-positioned for growth as a leading global supplier.

• Remaining 2024 sales prices and volumes are already booked.

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

• Ambition to pay out 50% of net annual profit as dividends, balanced with growth needs.

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