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Investing.com -- ALK-Abello (CSE:ALKb) shares jumped roughly 6% after the company posted stronger-than-expected second-quarter results, lifted by robust tablet sales and higher profitability, and lifted its revenue outlook.
Revenue rose 12% year-on-year to DKK 1.53 billion, ahead of the DKK 1.50 billion consensus cited by Jefferies, driven by double-digit growth in Europe and North America. International markets were flat due to shipment timing.
Tablet sales advanced 16% to DKK 831 million, beating estimates, with Europe up 17% and North America up 32%. International tablet sales increased 9%.
By contrast, SCIT/SLIT-drops fell 1% to DKK 481 million, missing the DKK 504 million forecast, as lower shipments to China weighed.
Sales of other products and services climbed 30% to DKK 215 million, including a 56% jump in anaphylaxis revenue from higher Jext demand.
Operating profit rose 41% to DKK 375 million, topping expectations of DKK 359 million, as margins expanded to 24.6% from 23.9% expected. The company cited sales growth, improved gross margins, and efficiency gains from last year’s initiatives as drivers.
Free cash flow improved to DKK 216 million, supported by earnings growth, while investing cash flow was DKK 104 million.
ALK-Abello had already preannounced a guidance upgrade, now targeting 2025 revenue growth of 12–14% at constant exchange rates, up from 9–13% previously.
EBIT margin guidance was reaffirmed at around 25%, broadly in line with consensus.
"The updated outlook reflects stronger 2Q revenue in Europe and an improved outlook for 2H, driven by both strong Acarizax growth and some tailwinds from Jext, plus likely including a de-risking of potential European tablet pricing headwinds," Jefferies analyst Benjamin Jackson said in a note.
"As a result of improved performance, management will allocate additional funds to strategic growth investments in 2H, expected to support the launches of neffy and paediatric tablets, which we believe should aid continued growth momentum into the midterm," he added.