Earnings call transcript: Almirall sees 13% sales rise in Q2 2025

Almirall reported robust Q2 2025 results, with net sales increasing by nearly 13% year-on-year and H1 EBITDA up 17% to €121.8 million, primarily driven by strong performance in its European medical dermatology portfolio. Key growth drivers included Ebglyss, which achieved €45 million in H1 sales and became the second-highest selling product, and Ilumetri, which saw a 13% rise in Q2 sales. The company maintained its full-year guidance and long-term targets, including a double-digit net sales CAGR through 2030 and a 25% EBITDA margin by 2028, supported by increased R&D investment and a low net debt/EBITDA ratio of 0.4x. Almirall is also advancing its pipeline, exploring new indications like psoriatic arthritis for Ilumetri and progressing novel treatments for dermatological diseases, reinforcing its leadership in the sector.

Analysis

Almirall reported robust Q2 2025 results, with net sales increasing by nearly 13% year-on-year and H1 EBITDA growing 17% to €121.8 million, demonstrating strong operational execution. This performance was primarily driven by its European medical dermatology portfolio, notably Ebglyss, which achieved €45 million in H1 sales and became the second-highest selling product, and Ilumetri, which saw a 13% Q2 sales increase. The company's gross margin reached 65.5%, supported by outlicensing impacts.

The company maintained its full-year 2025 guidance and reaffirmed ambitious long-term targets, including a double-digit net sales CAGR through 2030 and a 25% EBITDA margin by 2028. This confidence is underpinned by a significant 27% increase in R&D spending to 12.8% of net sales, indicating a strong commitment to pipeline innovation. Almirall plans four proof-of-concept Phase 2 clinical studies in the next 12 months and expanded its collaboration with Simcere.

Almirall's financial position remains solid with a low net debt/EBITDA ratio of 0.4x, providing strategic flexibility for potential inorganic growth. The stock's modest 0.83% increase post-announcement adds to an impressive 227% gain over the past six months, reflecting strong investor confidence and analyst expectations for continued profitability. Despite challenges in the U.S. market, the company's focus on European dermatology leadership is yielding positive results.

Key Decisions for Investors

• Monitor the uptake and market share expansion of key products like Ebglyss and Ilumetri across European markets, as these are critical for sustaining double-digit sales growth.
• Evaluate the progress of Almirall's R&D pipeline, particularly the upcoming Phase 2 clinical studies and new indications for existing drugs, which could unlock significant future revenue streams.
• Assess the company's capital allocation strategy, including potential bolt-on acquisitions and licensing opportunities, given its strong balance sheet and low leverage.