EQL Pharma (EQL) Q1 24/25 earnings summary

Executive summary

• Net sales for April–June 2024 reached SEK 82.8 million, up 47% year-over-year, driven by new product launches and expanded antibiotic sales.

• Operating profit (EBIT) rose 92% to SEK 15.2 million, with an 18% margin, despite SEK 2.1 million in one-off costs for NASDAQ uplisting and Red Sea shipping disruptions.

• Four new products were launched in Denmark, and Mellozzan was introduced in Germany and Austria, with approval in Switzerland post-quarter.

• The company was approved for trading on NASDAQ Stockholm, with trading commencing July 4, 2024.

Financial highlights

• Gross profit increased 41% to SEK 37.0 million; gross margin was 45% (down from 47% last year).

• EBITDA margin was 19% (18% last year).

• Earnings per share before and after dilution were SEK 0.36 (up from 0.23).

• Cash flow from operating activities was SEK -19.8 million, mainly due to increased inventory.

• Cash and cash equivalents at quarter-end were SEK 13.4 million.

Outlook and guidance

• Projected sales growth for full year 2024/25 is around 40%, in line with long-term targets.

• Targeted EBITDA margin of at least 25% by the last quarter of 2024/25.

• Continued expansion in Europe, with further launches of Mellozzan and other products planned.