Six-month interim report (Q2) 2016
Copenhagen, 2016-08-16 07:55 CEST --
Performance for the period (unaudited)
(Comparative figures for 2015 are shown in brackets / revenue growth is measured in local currencies. Revenue from ALK's base business is defined as total revenue excluding income from the SLIT-tablet partnerships in North America and International markets).
ALK continued to record high double-digit sales growth in Europe and North America in Q2. Sales in Europe benefited from continued increase of new orders in France and other markets which were affected by the temporary suspension of production at ALK’s main competitor. ALK sales also benefited from an accelerated shift in favour of registered products.
Q2 total revenue, including partner income, grew organically by 41% to DKK 773 million (565).
Q2 revenue in the base business grew organically by 43% to DKK 762 million (545).
European sales of SLIT-tablets doubled, thanks to strong growth in GRAZAX® sales, while ACARIZAX® continued to progress ahead of plans in its introductory phase, and has already become the most prescribed product for new AIT initiations in adult patients with house dust mite allergy in Denmark and Germany.
Operating profit (EBITDA) in Q2 was DKK 159 million (11), and the EBITDA margin was 21% (2%). EBITDA before special items was DKK 167 million (20).
H1 total revenue was DKK 1,621 million (1,215) and base business revenue was DKK 1,569 million, following 36% organic growth. H1 EBITDA before special items was DKK 463 million (158).
Free cash flow was an inflow of DKK 218 million (an outflow of 101) in H1.
Strong clinical progress for ACARIZAX®: Approval in Australia, first regulatory submissions in South-East Asia, submission of clinical trial application in China, regulatory submission in Canada and new launches in Europe where the Netherlands became the 13th country to issue a marketing authorisation.
Controlled phase-out of North American partnership with MSD, ref. to company announcement No 22/2016.
Updated 2016 financial guidance
The updated guidance reflects H1 2016 performance and a higher than expected order intake in Europe.
Total full-year revenue is now projected to exceed DKK 2.9 billion, including income from partnerships (previous guidance only reflected base business revenue).
Full-year revenue in the base business is now expected to grow organically by approximately 20% (previously: 15%).
Guidance assumes 5-10% organic growth in the base business in H2 2016 and a minor contribution from partnerships. In H2 2015, income from partnerships included a DKK 112 million milestone payment.
Full-year EBITDA is now expected to exceed DKK 600 million before special items (previously: approximately DKK 575 million before additional sales royalties and milestone payments).
Free cash flow is now expected at DKK 50-100 million (previously better than in 2015 (DKK 18 million)).
The markets in Europe have not yet normalised following a temporary halt in production by ALK’s main competitor, and ALK expects to have a clearer view on the sustained impact on its market share gains during autumn where many new patients typically are initiated on AIT treatment.
Hørsholm, 16 August 2016
For further information, contact:
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjær, tel. +45 7877 4532, 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 www.alk-abello.com/investor. Participants in the audio cast are kindly requested to call in before 1.25 p.m. (CEST). Danish participants should call in on tel. 7022 3500 and international participants should call in on tel. +44 (0) 20 7572 1187 or +1 646 722 4972. Please use the following Participant Pin Code: 96524073#. The conference call will also be webcast live on our website, where the related presentation will be made available shortly before the call begins.