Vistin Pharma Q1 2025 presentation: Record EBITDA amid strong metformin demand

Introduction & Market Context

Vistin Pharma ASA (OB:VISTN) presented its first quarter 2025 results on April 25, showcasing record EBITDA performance and continued growth in the metformin market. The Norwegian pharmaceutical company, which produces approximately 10% of the world’s metformin demand, continues to benefit from the expanding global diabetes treatment market.

Metformin remains the gold standard treatment for type 2 diabetes, a condition the International Diabetes Federation projects will affect 783 million people globally by 2045, representing a 50% increase from current levels. This growing market provides a solid foundation for Vistin’s business model as a pure-play metformin producer.

As shown in the following global diabetes growth projection map, different regions are expected to see varying increases in diabetes cases, with the Middle East & North Africa facing the highest growth rate at 134%:

Quarterly Performance Highlights

Vistin Pharma reported strong financial results for Q1 2025, with revenue reaching MNOK 115, an 11% increase compared to MNOK 104 in Q1 2024. The company achieved a record high EBITDA of MNOK 30, representing a substantial 48% year-over-year increase from MNOK 20 in Q1 2024.

Sales volumes increased by 14% compared to the same quarter last year, with 1,350 metric tons produced in the first quarter. The company’s EBITDA margin expanded to 26%, up from 20% in the comparable period, reflecting improved operational efficiency and favorable product mix.

The following chart illustrates Vistin’s consistent EBITDA growth over recent quarters, culminating in the Q1 2025 record:

The company’s income statement shows substantial improvement across all key metrics, with profit before tax more than doubling to MNOK 27.8 in Q1 2025 from MNOK 9.8 in Q1 2024:

Detailed Financial Analysis

Vistin Pharma has maintained a solid gross margin of 63% in Q1 2025, consistent with Q4 2024 and significantly higher than the 56% reported in Q1 2024. Management attributed this performance to stable production, favorable economies of scale in raw material purchasing, and ongoing cost optimization initiatives.

The quarterly revenue trend shows consistent performance with a slight upward trajectory over the past year:

The company’s balance sheet remains strong with an equity ratio of 80%. Total (EPA:TTEF) assets stood at MNOK 411.5 as of March 31, 2025, compared to MNOK 400.4 a year earlier. Vistin maintains a net positive cash position of MNOK 13, providing financial flexibility for future growth initiatives.

Looking at the longer-term revenue trend, Vistin has demonstrated consistent growth over the past decade, with revenue increasing nearly five-fold from MNOK 88 in 2010 to MNOK 430 in 2024:

Strategic Initiatives and Market Position

Vistin’s sales volumes have shown steady growth both quarterly and annually, reflecting the company’s successful execution of its capacity expansion strategy:

The company has invested MNOK 100 to increase its production capacity to approximately 7,000 metric tons, positioning it to capture additional market share as global metformin demand continues to grow. Management noted that freight lead times have stabilized compared to the volatility experienced in previous years, though they remain longer than pre-pandemic levels.

Vistin emphasized that it has not observed any changes in demand following US tariff announcements, suggesting resilience in its market position. The company continues to focus on operational improvements, with higher production run-rates compared to Q1 2024.

Forward-Looking Statements

Vistin Pharma maintains an optimistic outlook based on the projected 4-6% annual growth in the global metformin market. The company’s board has proposed a dividend of NOK 1.25 per share, reflecting confidence in its financial position and future prospects.

Management summarized the quarter’s performance and outlook with the following key points:

Vistin’s stock closed at NOK 23.60 on April 24, 2025, down 1.67% ahead of the earnings presentation. The shares have traded between NOK 20.70 and NOK 28.80 over the past 52 weeks.

As a pure-play metformin producer with approximately 10% global market share, Vistin Pharma appears well-positioned to benefit from the growing diabetes treatment market while continuing to focus on operational efficiency and strategic growth initiatives.

Full presentation:

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