ALK Abello: Six-month interim report (Q2) 2024

Company release No. 16/2024

ALK delivers 21% organic revenue growth with an operating profit margin of 19% in Q2 (unaudited)

Revenue growth was driven by a continued strong momentum in tablet sales, and improved performance of injection- and drop-based allergy immunotherapy products. ALK's European and International markets were key contributors to growth. The increase in operating profit (EBIT) of 189% is in-line with ALK's financial targets. Full-year outlook has been upgraded.

Q2 performance highlights

Comparative figures for Q2 2023 are shown in brackets. Revenue growth rates are stated in local currencies, unless otherwise indicated.

• Total revenue increased by 21% in local currencies to DKK 1,374 million (1,135) on broad-based growth.
• Tablet sales were up 32% to DKK 716 million (547) on double-digit growth in all sales regions. Europe was a key contributor with 35% growth.
• Combined SCIT and SLIT-drops sales grew by 16% to DKK 490 million (423) and saw robust growth in Europe and increasing SCIT shipments to China.
• Sales of Other products and services increased by 1% to DKK 168 million (165). Jext^® sales increased by 17% and is recovering from previous supply shortages while sales of other products declined.

• Operating profit (EBIT) increased by 189% in local currencies to DKK 264 million (97), with an EBIT margin of 19% (9%). Progress was driven by sales growth, gross margin improvements, and prudent cost management leading to lower total costs to R&D, Sales & Marketing and Administration. EBIT included one-off costs of DKK 38 million (0) associated with previously announced optimisation initiatives.
  
  

Financial highlights

				Growth							Growth
In DKKm	Q2 2024		l.c.			r.c.	H1 2024			l.c.			r.c.
Revenue	1,374		21%			21%	2,725			15%			15%
EBIT	264		189%			172%	580			84%			78%
EBIT margin - %	19%						21%
l.c.: local currency; r.c.: reported currenc

Progress on strategic priorities

• ALK launched its new strategy 'Allergy^+' on 03 June 2024 with new long-term financial ambitions for 2028. Implementation has started and is prioritising high-potential growth levers.
• The regulatory processes to secure approvals of the house dust mite and tree pollen allergy tablets for children in Europe and North America are ongoing. The 2024/25 launch preparations progress as planned. The clinical trial with the tablet for peanut allergy is on track and is still expected to report next set of results in H2 2024.
• Following its decision on 21 June to withdraw the license application for the house dust mite allergy tablet in China, ALK is working with the authorities on the documentation needed to obtain local approval.
• Optimisation activities are on track to free up resources for growth investments and support the 2025 earnings ambitions of a 25% EBIT margin.

2024 full-year outlook has been upgraded

With reference to Company Announcement no 15/2024, released earlier today, the full-year financial outlook has been upgraded to reflect current performance and outlook for the remainder of the year:

• Revenue is now expected to grow by 14-16% organically in local currencies (previously: 12-15%) on broad-based growth across sales regions and product groups. European tablet sales remain key to growth.

• The EBIT margin is now expected to improve to 19-21% (previously: 18-20%) (vs. 14% last year) mainly driven by the higher sales growth. One-off costs of DKK ~60 million related to optimisation efforts are included in the guidance.

Commenting on the Q2 results, CEO Peter Halling said: "Results in 2024 have so far exceeded expectations, and we are particularly encouraged by the continued robust tablet growth and the positive impact of the cost optimisation initiatives. The implementation of our new strategy 'Allergy+' is well underway and we have taken the first steps to effectively scale up ALK for future growth in revenue and earnings."

Hørsholm, 22 August 2024

ALK-Abelló A/S
For further information, contact:
Investor Relations: Per Plotnikof, tel. [phone], mobile [phone]
Media: Maiken Riise Andersen, tel. [phone]

ALK is hosting a conference call for analysts and investors at 1.30 p.m. (CEST) on 23 August 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.

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