Blau Farmacêutica (BLAU3) Q2 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 465 million in Q2 2024, up 28% year-over-year, with strong growth in both hospital (+23%) and retail/aesthetics/plasma (+62%) segments.

• Gross margin improved to 36.5%, up 320bps, and EBITDA margin reached 19.6%, with recurring EBITDA at BRL 91 million.

• Recurring net income reached BRL 52 million, up 23% sequentially, but down 26% year-over-year due to higher provisions and financial expenses.

• Launched five new drugs in Brazil in 2024, with 46 submissions and 28 approvals in Brazil and Latin America in H1 2024.

• Continued investment in R&D, with BRL 149 million invested in the last 12 months.

Financial highlights

• Net revenue grew 28% year-over-year in Q2 2024; organic growth (excluding Bergamo acquisition) was 16%.

• Gross profit rose 12% year-over-year to BRL 170 million, with margin expansion driven by lower replacement costs and higher volumes.

• Recurring EBITDA was BRL 91 million, up 86% year-over-year, with margin at 19.6%.

• Recurring net income was BRL 52 million, up 100% year-over-year and 23% sequentially.

• LTM revenue reached nearly BRL 1.6 billion, already matching full-year consensus for 2024.

Outlook and guidance

• Management expects continued margin improvement and revenue growth, supported by new product launches, operational efficiency, and international expansion.

• No reliance on public sector immunoglobulin sales for 2024 growth; focus remains on private market expansion.

• Ongoing investments in R&D, capacity, and international diversification to support future growth.

• Pipeline for 2024 includes launches with a total addressable market of BRL 714 million.