UCB (UCB) H1 2024 earnings summary

Executive summary

• Net sales grew 11% year-over-year (+13% at constant exchange rate), reversing last year's decline and marking a strong inflection point for growth.

• Double-digit revenue and net sales growth in H1 2024, driven by strong launches and portfolio expansion, especially for BIMZELX®, FINTEPLA®, RYSTIGGO®, ZILBRYSQ®, and EVENITY®.

• Substantial investments in new product launches and pipeline advancement, with 10 clinical programs and multiple regulatory submissions and approvals.

• ESG performance improved, with top 10% global pharma ranking and expanded access in low- and middle-income countries.

• Profit dropped 33% to €208M; core EPS was €2.09, down from €2.63 in H1 2023.

Financial highlights

• H1 2024 net sales: €2.64bn (+11%; +13% CER); revenue: €2.79bn (+8%; +10% CER); adjusted EBITDA: €652m (down 19% year-over-year), margin 23%.

• Operating expenses rose 23%, mainly due to increased marketing, sales, and R&D investments.

• Gross margin stable at 77%; adjusted EBIT declined 31% to €334M.

• Dividend of €1.36/share paid, totaling €259M.

• Net debt increased to €2,614M, with a net debt/adjusted EBITDA ratio of 2.2x.

Outlook and guidance

• 2024 revenue expected at the upper end of €5.5–5.7bn; adjusted EBITDA margin 23.0–24.5%; core EPS €3.70–4.40.

• 2025 targets reaffirmed: revenue of at least €6bn, EBITDA margin in the low- to mid-30% range, and improved gross margin.

• Continued investment in launches and pipeline, with focus on maximizing operating leverage and cost discipline.

• Tax rate expected around 15–16%.