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Six-month interim report (Q2) 2022
ALK reports Q2 revenue up 17%, EBITDA up 123%, and full-year outlook upgraded (unaudited)
Performance in Q2 was better than expected with double-digit growth in all regions and ALK reported its best-ever Q2 results. Total revenue was up 17% led by sales growth from tablets and Jext®. In Europe, ALK’s largest region, sales were up 14% and bounced back strongly after the COVID-led headwinds of Q1. Operating profit (EBITDA) increased 123% on sales growth and improved gross margin. Based on the strong sales momentum, ALK has upgraded its financial outlook for 2022.
Q2 2022 financial highlights
Total revenue was up 17% in local currencies to DKK 1,045 million (868). Currencies had a positive effect of 3 percentage points, resulting in reported growth of 20%. Revenue for the first six months was up 14% in local currencies (16% reported growth) with tablet sales growth of 21%.
Tablet sales grew 18% to DKK 480 million (401) on increasing uptake in Europe, where sales were up 21%. Global growth was softened by the phasing of product shipments to Japan.
Combined SCIT and SLIT-drops sales grew 4% on the recovery in Europe and higher revenue from China, while sales of other products grew due to significantly improved Jext® sales.
Gross margin improved to 61% (58) primarily on sales growth and efficiencies.
Operating profit (EBITDA) increased 123% in reported currency to DKK 107 million (48), on strong sales growth and improved gross margin, while R&D and sales and marketing expenses were largely as planned. EBITDA for the first six months was up 38% at DKK 379 million (274).
Key events and strategic progress
ALK continued to make good progress on its strategic priorities and remained resilient to other challenges. In Q2:
ALK initiated a Phase I clinical trial with its SLIT-tablet for the treatment of peanut allergy. The trial will assess the tolerability and safety of dosing with a SLIT-tablet against peanut allergy taken once daily.
ALK’s two pivotal, Phase III paediatric trials of its house dust mite and tree tablets remain on course for completion in 2023.
ALK signed an expanded agreement with contract manufacturer Catalent, which secures long-term manufacturing capacity for the SLIT-tablet portfolio to accommodate ALK’s strategic growth ambitions towards 2030.
2022 financial outlook
As announced on 4 August 2022, based on a strong sales momentum and the outlook for the remainder of the year, ALK has upgraded its full-year outlook:
Revenue is now expected to grow 10-13% in local currencies (previously: 8-12%).
EBITDA is now expected to increase to DKK 675-750 million (previously: 625-725).
Hørsholm, 11 August 2022
ALK-Abelló A/S
Comparative figures for 2021 are shown in brackets. Revenue growth rates are stated in local currencies, unless otherwise indicated
For further information, contact:
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjær, mobile +45 3050 2014
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 is 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. +44 808 101 1183 or +1 785 424 1226. Please use the Participant Pin Code: 35630#
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