January - March 2025

• Consolidated sales during the fourth quarter, January to March amounted to SEK 113.3 (78.1) million, an increase of 45%.
• Gross profit amounted to SEK 46.5 (31.5) million, an increase of 48%.
• Operating profit (EBIT) amounted to SEK 23.0 (8.4) million, an increase of 174%. The operating margin was 20% (11%).
• EBITDA amounted to SEK 28.0 (10.8) million and EBITDA margin was 25% (14%).
• Earnings per share before dilution were SEK 0:45 (0:16) for the quarter. Earnings per share after dilution were SEK 0:44 (0:16).
• Cash flow from operating activities amounted to SEK -13.9 (-2.9) million.
• Cash and cash equivalents were SEK 82.4 (20.5) million at the end of the quarter.

April 2024 - March 2025

• Consolidated sales during the period April to March amounted to SEK 373.5 (264.2) million, an increase with 41%.
• Gross profit amounted to SEK 156.0 (115.0) million, an increase of 36%.
• Operating profit (EBIT) amounted to SEK 67.4 (32.6) million, an increase with 107%. The operating margin was 18% (12%).
• EBITDA amounted to SEK 78.3 (42.2) million and EBITDA margin was 21% (16%).
• Earnings per share were SEK 1:48 (0:78). Earnings per share after dilution were SEK 1:44 (0:76).
• Cash flow from operating activities amounted to SEK -24.7 (-11.4) million.
• Cash and cash equivalents were SEK 82.4 (20.5) million at the end of the period.

CEO's comments

The fourth quarter of 2024/25 was successful for EQL Pharma. The first acquisition of a more significant nature was completed, sales grew by 45% and operating profit by 174%. We thus met the goals of our ambitious five-year plan. During the quarter, a record number of 11 new products were added to the pipeline. In addition, the first major non-European deal was closed in the form of a distribution agreement with Pharmalink for Mellozzan in the Gulf countries. The ambitions for the coming four-year period were presented at EQL's first Capital Markets Day in March. Sales growth for the full year 2025/26 is forecast to be around 30%.

Financial Overview for the fourth quarter

During the quarter, sales rose to SEK 113.3 million, an increase of 45% from SEK 78.1 million in the previous year. Operating profit (EBIT) increased by 174% to SEK 23.0 million compared to SEK 8.4 million in the previous year, with an EBITDA margin of 25%. Continued transport disruptions in the Red Sea pushed the gross margin to 41% (40%).

There were no significant sales of Covid-19 tests during the quarter, which means that the entire growth was driven by increased pharmaceutical sales.

Liquid funds amounted to SEK 82.4 million (20.5) at the end of the quarter. In addition, there is an unutilised working capital credit facility of SEK 26.6 (10.0) million.

CAPEX was SEK 209.3 million during the quarter, which of course is primarily due to the completion of the Medilink acquisition. In general, a higher CAPEX is expected in 2025/26 than before as a result of the pipeline growing, which is also the reason why the cash position is relatively large.

Leverage amounted to 3.5x EBITDA.

Financial targets and forecasts for the current financial year

As sales grew by 45% and the EBITDA margin amounted to 25%, EQL has passed the "graduation year" and thus the targets set out in our five-year plan 2020/21 - 2024/25. This means that EQL has delivered on its, relatively speaking, very aggressive five-year targets for the second period in a row.

During the quarter, a new five-year plan was presented (with four full years). 2024/25 - 2028/29, the goal is to grow by an average of 30%; stabilizing the EBITDA margin initially at 25%; then over 25%. Our peak leverage shall be a maximum of 4.0x EBITDA, with a target to strive for 2.5x. Sales growth for the coming full year 2025/26 is forecast to around 30%.

Product launches and market dynamics

During the quarter, six new products were launched. The portfolio thus grows from 40 to 46 launched products. Four of the products come from the Medilink acquisition, which was completed on January 31. The remaining two products, Testonur and Amotaks, are retail products with the main market in Sweden and Denmark.

For our key strategic product Mellozzan, a distribution agreement was signed with Pharmalink for the Gulf Cooperation Council (GCC) region during the quarter. Pharmalink will distribute Mellozzan in the Region but EQL will be the holder of the marketing authorization. In addition, the rights for France were transferred from HAC to Medice, in order to simplify and harmonize the construction of the brand in Europe. 

During the quarter, 11 new niche generics were added to our pipeline, which thus grows to 44. The reason we were able to add a relatively large number of products during the quarter is that we completed a major tender containing a portfolio of development products.

Other

The situation for our carriers in the Red Sea has not changed since the last quarter.

EQL has no exposure to the US or direct impact from American potential tariffs. On the contrary, new trade agreements between Asia and Europe, as a result of American tariffs, could benefit EQL. Sales of our medicines are also non-cyclical, which means that we stand steady, even in a more uncertain global environment.

The work of the last few quarters has been characterized by delivering the previous five-year plan. We are now entering a phase where great focus is on ensuring that EQL can deliver on the new plan in the long term. This means concretely adding more new products and territories, working actively with the cost base and ensuring progress in our various development projects and launches.