Q2, April - June
· Net sales amounted to MSEK 688.9 (387.4). This corresponds to an increase of 78% for the period. The organic growth during the second quarter was -10%, currency impact 0% and 88% relates to the acquisition of Trimb in 2019 and the acquired product portfolios Proct® from Leo Pharma and Pevaryl® from
· EBIT (Operating Profit) amounted to MSEK 98.6 (20.3) corresponding to a 385% growth.
· Adjusted EBITDA* amounted to MSEK 213.7 (137.8) corresponding to a 55% growth. This excluding non-recurring items related to a new valuation method of inventory (see note 1) totalling MSEK -12.4 (35.3).
· The gross margin was 60.8% (54.5%) for the quarter. The margin was affected by a positive product mix and a new valuation of inventory. The gross margin without this effect was 59,0%.
· Cash flow from operating activities amounted to MSEK 171.0 (111.8).
· Earnings per share was
· During the period
· During the period, the Pevaryl® portfolio was acquired from
Summary of half-year result, January - June
· Net sales amounted to MSEK 1 482.5 (808.2). This corresponds to an increase of 83% for the period. The organic growth during the first half of the year was 7%, currency impact -1% and 77% relates to the acquisition of Trimb in 2019 and the acquired product portfolios Proct® from Leo Pharma and Pevaryl® from
· EBIT (Operating Profit) amounted to MSEK 202.6 (107.7) corresponding to 88% growth.
· Adjusted EBITDA* amounted to MSEK 426.9 (290.8) corresponding to a 47% growth. This excluding non-recurring items related to the acquisitions and the valuation of inventory (see note 1) totalling MSEK -8.5 (35.3).
· The gross margin was 57.1% (55.2%) for the period. The margin was affected by a positive product mix and a new valuation of inventory. The gross margin without this effect was 56,3%.
· Cash flow from operating activities amounted to MSEK 161.3 (203.6).
· Earnings per share was
· During the period, the Proct® portfolio was acquired from Leo Pharma with all related rights and assets. The transaction closed on
· During the period
· During the period, the Pevaryl® portfolio was acquired from
· At the end of the period, cash and cash equivalents and other current investments amounted to MSEK 390.4 (248.8 at
* Alternative Financial Ratios (APM), note 4 for further information.
Comments by CEO
The Q2 performance was negatively impacted by the COVID-19 pandemic. As anticipated, and as communicated in the Q1 financial report, Q1 was positively impacted by a one-off build-up of inventories across the supply chain at the wholesaler, pharmacy, and consumer level. The Q1 build-up was partially rebalanced in Q2, particularly in the pain, cough & cold category and in the specialty Rx category. We expect to see further rebalancing in H2, but to a lesser extent than during Q2. Further normalization of inventories will of course depend on the development of COVID-19 across geographies.
We continue to execute in accordance with our long-term strategy and vision for the business. In the beginning of Q2 we announced the acquisition of the remaining European rights to the Pevaryl[®] brand portfolio from
The Pevaryl[®] brand portfolio adds approximately 20 MEUR of sales to our business, consolidates European ownership of the Pevaryl[®] brand with
We are also continuing to streamline and optimize our business. The explorations of strategic alternatives for the Hospital Supply business,
Christoffer Lorenzen
CEO
Significant events after period end
Auditors' review
The interim report has not been the subject to auditors' review.
Financial Calendar
Interim report Jan-
Year-end report 2020
The Annual Report 2019 was released
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