Almirall SA (WBO:ALM) Q1 2025 Earnings Call Highlights: Strong Sales Growth and Strategic ...

In This Article:

  • Net Sales Growth: 15% increase year on year, with a 10% growth excluding out-licensing impact.

  • Ilumetri Sales: EUR 55 million in Q1 2025, up 13% year on year.

  • EMIs Sales: EUR 19.4 million in Q1 2025, a 52% increase quarter on quarter.

  • Gross Margin: 66.9%, slightly up from 2024.

  • EBITDA: EUR 70.9 million in Q1 2025, up 35% versus Q1 2024.

  • SG&A Expenses: EUR 122.8 million, up 9.6% year on year.

  • R&D Investment: Up 34% year on year, representing 12.5% of net sales.

  • Net Debt-to-EBITDA Ratio: 0.1x, indicating strong financial positioning.

  • Operating Cash Flow: EUR 26.4 million in Q1 2025.

Release Date: May 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Almirall SA (WBO:ALM) reported a strong start to 2025 with a 15% increase in net sales year-on-year, aligning with their full-year guidance.

  • The company's dermatology portfolio, particularly Ilumetri and Eblys, showed robust growth, with Ilumetri's net sales up 13% year-on-year.

  • Almirall successfully launched Eblys in key European markets, achieving strong brand awareness and favorable reimbursement pricing.

  • The company maintained a solid gross margin of 66.9% in Q1 2025, aided by a strategic out-licensing transaction.

  • Almirall's R&D investment increased by 34% year-on-year, supporting pipeline advancement and future growth strategies.

Negative Points

  • The US business experienced a slight decline, with ongoing generic pressure affecting legacy products.

  • Almirall's SG&A expenses increased by 9.6% to EUR122.8 million, driven by investments in recent and upcoming launches.

  • The effective tax rate remains high, influenced by the inability to offset US tax losses against profitable European operations.

  • There is anticipated gross margin pressure for the full year due to sales mix and higher royalty tiers as Ilumetri sales increase.

  • The company's exposure to potential tariffs on imports and exports could pose risks, although currently deemed marginal.

Q & A Highlights

Q: Could you provide insight into physician and patient feedback on Elis, especially in comparison to Dupixent? Also, should we expect more divestments to streamline the business and enhance R&D? A: Feedback on Elis has been extremely positive, with physicians appreciating its use in various patient types, including difficult-to-treat cases. It shows a fast onset of symptom relief, positioning it as a first-line treatment for atopic dermatitis. Regarding divestments, we do not anticipate significant transactions. We expect minor non-derma value maximization activities, with projected income of EUR20 million to EUR25 million this year.