Three-month interim report (Q1) 2024 (unaudited)
02 Mayo 2024 - 12:43PM
Company release No. 11/2024
ALK delivers 10%
organic revenue growth with operating profit up
41% in Q1 and upgrades outlookThe growth
in ALK's overall sales was primarily driven by the European tablet
sales, which were boosted by the inflow of new patients and
improved pricing. Sales outside Europe had a soft start to the
year, partly due to temporary sales fluctuations and phasing of
product shipments to International markets. Outlook for full-year
revenue growth now expected at 10-13% (previously 9-12%).
Performance highlights
Comparative figures for Q1 2023 are shown in brackets. Revenue
growth rates are stated in local currencies, unless otherwise
indicated.
- Total revenue increased by 10% in
local currencies to DKK 1,351 million (1,234).
- Tablet sales increased by 22% to DKK
706 million (581) on 28% growth in Europe, 20% growth in North
America and 1% growth in International markets which was impacted
by phasing of shipments to Japan.
- Combined SCIT and SLIT-drops sales
decreased 1% to DKK 500 million (510). Robust growth in European
sales was offset by fluctuations in SCIT shipments to China and
lower SCIT sales in North America.
- Sales of Other products and services
increased 1% to DKK 145 million (143). Jext® sales increased
by 10% and is normalising after the intermittent supply shortages
that impacted sales in Q2-Q4 2023.
- Revenue increased 18% in Europe and
2% in North America and decreased 18% in International
markets.
- Operating profit (EBIT) increased by
41% in local currencies to DKK 316 million (228), with an EBIT
margin of 23% (18%). Progress was driven by sales growth, improved
gross margin and prudent costs management leading to largely
unchanged capacity costs to R&D, Sales, Marketing and
Administration.
Financial performance for the first three months
2024
|
In DKKm |
3M 2024 |
3M 2023 |
Growth (local currencies) |
Growth (reported) |
Revenue |
1,351 |
1,234 |
10% |
9.5% |
EBIT |
316 |
228 |
41% |
39% |
EBIT margin – % |
23% |
18% |
|
|
Strategic highlights
- ALK made progress with its strategic
priorities in Q1. ALK is in the process of securing regulatory
approvals to expand the product approvals for its house dust mite
and tree pollen allergy tablets to include children. Launch
preparations continue to progress as planned ahead of the expected
launches in 2024/25.
- The strategy review is still ongoing
and ALK will present the updated strategy and new long-term
financial aspirations at a Capital Markets Day on June 4, 2024 at
the company’s headquarters in Denmark.
- ALK is implementing a number of
optimisation and prioritisation initiatives in 2024 to free up
approximately DKK 250 million in 2025 for strategic growth
investments and support of its earnings ambitions. These
initiatives are expected to entail one-off costs of approximately
DKK 60 million in 2024, that have been included in the earnings
outlook which is unchanged.
2024 full-year outlook
With reference to Company Announcement no 10/2024, released
earlier today, the full-year financial outlook has been upgraded
mainly to reflect the recent development in European tablet
sales:
- Revenue is now expected to grow by
10-13% (previously: 9-12%) organically in local currencies on
broad-based growth across sales regions and product groups.
European tablet sales remain key to growth.
- The EBIT margin is still expected to
improve to 17-19% (up from 14% last year) on sales growth,
efficiencies, and lower R&D costs. One-off costs of DKK ~60
million to optimisation efforts are now included in this
guidance.
Commenting on the Q1 results, CEO Peter Halling
said: “2024 started well for ALK. Revenue in Q1 was up
10%, and the operating profit increased significantly on
operational leverage and prudent cost management. We are pleased to
see European tablet sales continue to rebound adding to the good
momentum we established in the second half of 2023. As part of our
ongoing strategy review, we are implementing a number of
optimisation measures in order to free up resources to reinvest in
strategic growth initiatives without compromising our profitability
ambitions.”
Hørsholm, 02 May 2024
ALK-Abelló A/S
For further information, contact: Investor
Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261
2525Media: Maiken Riise Andersen, tel. +45 5054 1434
ALK is hosting a conference call for analysts and investors at
12.30 p.m. (CET) on 3 May 2024 at which Management
will review the financial results and the outlook. The conference
call will be audio cast on https://ir.alk.net where the relevant
presentation will be available shortly before the call begins.
To register for the conference call, please use this link
https://dpregister.com/sreg/10187885/fc17991254 and follow the
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you to register well in advance and to call in before
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