Laboratorios Farmaceuticos adds 4% after solid Q1 results

Published 08/05/2025, 09:32
Laboratorios Farmaceuticos adds 4% after solid Q1 results

Investing.com -- Shares of Laboratorios Farmaceuticos climbed 3.5% following the release of its first-quarter earnings, which surpassed consensus expectations on both top and bottom lines. The pharmaceutical company reported operating revenues of €154.9 million in the first quarter of 2025, a 2% increase from the previous year and higher than the consensus estimate of €151.5 million.

The growth was attributed to the performance of the Specialty pharma business, which saw an 18% increase in sales to €119.1 million, up from €101.1 million in the first quarter of the previous year. This rise helped offset a 29% decline in CDMO revenues, which fell to €35.8 million from €50.1 million in the same period last year.

Laboratorios Farmaceuticos’ gross margin also improved, reaching 58.5% in the first quarter of 2025 compared to 56.6% in the first quarter of 2024, and beating the consensus of 58.2%. The increase in gross margin was driven by a higher contribution from high-margin products like Okedi and a decrease in low-molecular-weight heparin (LMWH) raw material prices.

Despite a challenging environment, the company reiterated its guidance for fiscal year 2025, expecting a mid-single-digit percentage decline in operating revenue compared to 2024, in line with consensus. The company cited uncertainties regarding the demand and production for upcoming vaccination campaigns and the extent of new business for its CDMO services as factors making precise forecasts difficult.

Additionally, Laboratorios Farmaceuticos anticipates its enoxaparin biosimilar sales to decrease by a low-single-digit percentage compared to fiscal year 2024, while Bemiparin is projected to grow at a low-single-digit rate. The company’s CDMO business remains a focal point for future growth, with expectations to increase operating growth by 1.5 to 1.8 times by 2030, driven by anticipated sales doubling to approximately €700 million.

The first quarter’s EBITDA rose 17% to €30.3 million, surpassing the consensus of €26.5 million, and the EBITDA margin increased to 19.6%. Net profit saw a notable increase of 21% to €18.1 million, again outperforming consensus estimates of €14.7 million.

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