Vistin Pharma (VISTN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was NOK 106 million, down 12% from Q3 2023, due to lower sales volume, safety stock build, and lower global Metformin prices.

• Record high EBITDA of NOK 29 million in Q3 2024, up from NOK 27 million in Q3 2023, driven by favorable product mix, material costs, and cost control.

• All-time high production volume of 1,500 metric tons achieved, reflecting strong operational utilization.

• Cash dividend of NOK 1.25 per share distributed YTD 2024, with an additional NOK 0.50 per share to be distributed in Q4.

Financial highlights

• Year-to-date revenue at NOK 316 million, compared to NOK 328 million last year.

• Year-to-date EBITDA of NOK 76.6 million, up 26% from NOK 61 million in the same period last year.

• Gross margin in Q3 was 68%, well above the 60% target, attributed to economies of scale and stable production.

• Net profit for Q3 was NOK 16.6 million, down from NOK 23.5 million in Q3 2023, impacted by negative net finance.

• Equity ratio at 80% as of September 2024, with no interest-bearing debt.

Outlook and guidance

• Metformin market expected to grow 4%-6% annually; company aims to maintain a 10% global market share with full capacity.

• Sales prices and volumes for the rest of 2024 are booked; long-term renewable energy agreement with Statkraft ensures predictable, green energy supply until 2032.

• Ambition to pay out 50% of net annual profit as dividend, subject to financial capability and growth needs.

• Attractive growth potential as new manufacturing capacity becomes fully utilized.

• Higher manufacturing and sales volumes anticipated to increase working capital needs; further CAPEX required for growth and sustainability.