ALK reports Q1 revenue growth of 11% with tablet sales up 24% and earnings up 20% (unaudited)

ALK delivered strong financial performance in Q1, with revenue up 11% and tablets as the primary driver of growth with sales up 24%. Sales growth and efficiencies led to a further improvement in gross margin, and operating profit (EBITDA) increased by 20%. ALK's financial outlook for 2022 is maintained.

Q1 2022 financial highlights

   -- Total revenue increased 11% organically in local currencies to DKK 1,155 
      million (1,021). 
   -- Currencies had a positive effect of 2 percentage points, resulting in 
      reported growth of 13%. 
   -- Tablet sales increased by 24% to DKK 583 million (466) on broad-based 
      growth, particularly from Japan, and tablets now account for 50% of 
      overall revenue. 
   -- Combined SCIT and SLIT-drops sales increased 2% on strong growth from 
      International markets, especially China, while sales of other products 
      were down 5%. 
   -- Gross margin improved by 2 percentage points to 64% on sales growth and 
   -- Operating profit (EBITDA) increased 20% in reported currency to DKK 272 
      million (226), largely on the strong sales growth and improved gross 
      margin, while R&D and sales and marketing expenses increased as planned. 
   -- Free cash flow was DKK 38 million (86) impacted by changes in working 

Key events and strategic progress

ALK continued to make good progress on its strategic priorities and remained robust in the face of other challenges. In Q1:

   -- ALK received a clinical trial waiver from China's authorities, permitting 
      ALK to submit a registration filing for its house dust mite allergy 
      tablet in 2022, without finalising the paused, local Phase III trial. 
   -- ALK is finalising plans for the early clinical development of its peanut 
      allergy tablet and expects to initiate a Phase I trial soon. 
   -- ALK has established an exclusive licensing agreement with Dr Reddy's 
      Laboratories that will lead to the future introduction of ALK's house 
      dust mite tablet in India. 
   -- As expected, COVID continued to somewhat distort allergy markets in Q1, 
      with infections once again restricting allergy patients' ability and 
      willingness to seek treatment to varying degrees, especially in certain 
      European markets. 

2022 financial outlook maintained

Based on performance in the first three months and forecasts for the remainder of the year, ALK is maintaining its full-year outlook:

   -- Revenue is still expected to grow 8-12% in local currencies with tablet 
      sales up by 20%. 
   -- EBITDA is still expected to increase to DKK 625-725 million (2021: DKK 
      534 million) on sales growth, improved gross margin and efficiencies. 

Hørsholm, 12 May 2022

ALK-Abelló A/S

Comparative figures for 2021 are shown in brackets. Revenue growth rates are stated in local currencies, unless otherwise indicated

For further information, contact:

Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525

Media: Jeppe Ilkjær, 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 https://www.globenewswire.com/Tracker?data=ZbscKoFw4LjiZ3muEZ3yV408XYhH2_4-Z3K1k45C97b9LsEsQzjoBkJfQkgTuQEUZ8QawSJ-DIqCzJpX-Lojtg== https://ir.alk.net where the relevant presentation is available shortly before the call begins. Please call in before 1.25 p.m. (CEST). Danish participants should call in on tel. +45 3544 5577 and international participants should call in on tel. +44 333 300 0804 or +1 631 913 1422. Please use the Participant Pin Code: 67379541#.


   -- FM_09_22UK_12052022 

(END) Dow Jones Newswires

May 12, 2022 01:30 ET (05:30 GMT)

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