H. Lundbeck (LUN) Q2 2024 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in H1 2024 to DKK 10.7bn, with strategic brands comprising 73% of revenue and growing 19% CER, led by Vyepti (+78%), Rexulti (+13%), and Brintellix/Trintellix (+11%).

• Adjusted EBITDA rose 5% to DKK 3,365 million, with margin at 31.3%, reflecting strong brand performance but impacted by higher costs and currency effects.

• Net profit increased 20% to DKK 1,776 million; adjusted EPS up 7% to DKK 2.64.

• Raised full-year 2024 guidance for revenue (11–14%) and adjusted EBITDA (15–20%) due to robust demand and performance.

• Advanced R&D pipeline with progress in anti-PACAP, anti-alpha-synuclein, anti-ACTH, and new regulatory filings.

Financial highlights

• Revenue reached DKK 10,741m in H1 2024, up 10% year-over-year; gross margin improved to 80.8%.

• Adjusted EBITDA was DKK 3,365m (up 5%), with a margin of 31.3%.

• Net profit increased 20% to DKK 1,776m; adjusted EPS rose 7% to DKK 2.64.

• Free cash flow was DKK 1,933m, supporting a net cash position of DKK 1,852m at period end.

• EBIT margin improved to 21.2% (from 20.8%); ROIC at 11.8%.

Outlook and guidance

• Full-year 2024 revenue growth guidance raised to 11–14% CER; adjusted EBITDA growth to 15–20% CER.

• Adjusted gross margin expected at 88–89%; R&D costs guided at DKK 3.9–4.1bn; effective tax rate 22–24%.

• Guidance reflects higher expectations for Rexulti and Vyepti in the U.S. and Brintellix/Trintellix in Europe and Asia.

• Net cash expected between DKK 4.2–4.7bn by year-end.

• Includes significant pre-commercial investment for PTSD indication.