ALK delivers 11 % revenue growth with operating profit up 120 % in Q2 (unaudited)
ALK’s revenue grew by 11% in Q2 2023, driven by 17% growth in tablet sales and double-digit growth in combined SCIT/SLIT-drops sales. Operating profit (EBIT) increased by 120% in local currencies on sales growth and gross margin improvements.
Q 2 2023 financial highlights
Comparative figures for Q 2 2022 are shown in brackets. Revenue g rowth rates are stated in local currencies, unless otherwise indicated
- Revenue increased by 11% to DKK 1,135 million (1,045), equalling 12% growth when disregarding the one-year mandatory rebate increase in Germany. Currencies lowered reported growth by 2 percentage points.
- Revenue increased by 64% in International markets, by 10% in North America, and by 2% in Europe.
- Tablet sales increased by 17% to DKK 547 million (480), with an increase of 97% in International markets (mainly driven by product shipments to Japan), and 20% in North America. As expected, growth in tablet sales in Europe was flat.
- Global SCIT and SLIT-drops sales increased by 13% to DKK 423 million (380) driven by Europe and China, while sales of Other products and services decreased by 8% to DKK 165 million (185) on declining Jext ® sales.
- Q2 operating profit (EBIT) increased by 120% in local currencies, which equates to 98% in reported currency, on sales growth and gross margin improvements, which were partly offset by a minor increase in capacity costs. EBIT was DKK 97 million (49) with an EBIT-margin of 9% (5), resulting in a 14% (12) EBIT-margin for the first half year.
Financial performance for the first six months (H1) 2023
In DKKm | H1 2023 | H1 2022 | Growth ( local currencies ) | Growth ( reported ) |
Revenue | 2,369 | 2,200 | 9% | 8% |
EBIT | 325 | 264 | 33% | 23% |
E BIT margin - % | 14% | 12% |
P rogress on strategic priorities
- Based on the strong results from the paediatric MT-12 Phase 3 trial, ALK has started preparing a registration application for authorities in Europe and North America to expand the indications for the house dust mite (HDM) tablet to include children aged five to 11. The MT-12 trial met its primary endpoint and all key secondary endpoints.
- Top-line results from the TT-06 paediatric Phase 3 trial with the tree tablet are still expected in Q4 2023.
- First readouts from the Phase 1 trial of tablet treatment for peanut allergy are still expected end-2023.
- The regulatory review of the Biologics Licence Application for ALK’s HDM tablet in China is ongoing and is still expected to complete in 2024.
- The government in Japan, one of the world’s largest allergy immunotherapy tablet markets, has launched a comprehensive action plan to further combat respiratory allergy. ALK and its partner Torii are currently assessing how to best support the government’s plan.
2023 revenue outlook is narrowed; earnings outlook remains unchanged
The full-year revenue outlook has been narrowed to mainly reflect the year-to-date progress and intermittent supply shortages affecting Jext ® . The full-year earnings outlook is unchanged:
- Revenue is now expected to grow by 8-10% organically in local currencies (previously: 7-11%), which is equivalent to 9-11% growth, disregarding the one-year temporary mandatory rebate increase for prescription drugs in Germany.
- Tablets sales and SCIT/SLIT-drops sales are still expected to grow by double digits respectively in the second half of the year. Full-year tablet growth is still expected within the previously communicated range.
- Earnings margin (EBIT margin) is still expected to increase from 10% in 2022 to 13-15% on sales growth, efficiencies, economies of scale and lower R&D costs.
Hørsholm, 24 August 2023
ALK- Abelló A/S
For further information, contact:
Investor Relations : Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Maiken Riise Andersen, tel. +45 5054 1434
Today, ALK is hosting a conference call for analysts and investors at 1.30 p.m. (CEST) 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. Please call in before 1.25 p.m. (CEST). Danish participants should call in on tel. +45 7877 4197 and international participants should call in on tel. +44 0 808 101 1183 or +1 785 424 1102 . Please use the Participant Pin Code: 55214#
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