ALK reports Q2 revenue up 17%, EBITDA up 123%, and full-year outlook upgraded (unaudited)

Performance in Q2 was better than expected with double-digit growth in all regions and ALK reported its best-ever Q2 results. Total revenue was up 17% led by sales growth from tablets and Jext(R) . In Europe, ALK's largest region, sales were up 14% and bounced back strongly after the COVID-led headwinds of Q1. Operating profit (EBITDA) increased 123% on sales growth and improved gross margin. Based on the strong sales momentum, ALK has upgraded its financial outlook for 2022.

Q2 2022 financial highlights

   -- Total revenue was up 17% in local currencies to DKK 1,045 million (868). 
      Currencies had a positive effect of 3 percentage points, resulting in 
      reported growth of 20%. Revenue for the first six months was up 14% in 
      local currencies (16% reported growth) with tablet sales growth of 21%. 
   -- Tablet sales grew 18% to DKK 480 million (401) on increasing uptake in 
      Europe, where sales were up 21%. Global growth was softened by the 
      phasing of product shipments to Japan. 
   -- Combined SCIT and SLIT-drops sales grew 4% on the recovery in Europe and 
      higher revenue from China, while sales of other products grew due to 
      significantly improved Jext(R) sales. 
   -- Gross margin improved to 61% (58) primarily on sales growth and 
   -- Operating profit (EBITDA) increased 123% in reported currency to DKK 107 
      million (48), on strong sales growth and improved gross margin, while R&D 
      and sales and marketing expenses were largely as planned. EBITDA for the 
      first six months was up 38% at DKK 379 million (274). 

Key events and strategic progress

ALK continued to make good progress on its strategic priorities and remained resilient to other challenges. In Q2:

   -- ALK initiated a Phase I clinical trial with its SLIT-tablet for the 
      treatment of peanut allergy. The trial will assess the tolerability and 
      safety of dosing with a SLIT-tablet against peanut allergy taken once 
   -- ALK's two pivotal, Phase III paediatric trials of its house dust mite and 
      tree tablets remain on course for completion in 2023. 
   -- ALK signed an expanded agreement with contract manufacturer Catalent, 
      which secures long-term manufacturing capacity for the SLIT-tablet 
      portfolio to accommodate ALK's strategic growth ambitions towards 2030. 

2022 financial outlook

As announced on 4 August 2022, based on a strong sales momentum and the outlook for the remainder of the year, ALK has upgraded its full-year outlook:

   -- Revenue is now expected to grow 10-13% in local currencies (previously: 
   -- EBITDA is now expected to increase to DKK 675-750 million (previously: 

Hørsholm, 11 August 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=I9aaydl5l3LME-1H1Umy7nXhBaOGA3DA-X27BDoU76XLe1achR3BLYz-97Z2LvkQUC3ZVw4o4UaUMHwbPF72HA== 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 7877 4197 and international participants should call in on tel. +44 808 101 1183 or +1 785 424 1226. Please use the Participant Pin Code: 35630#


   -- FM_14_22UK_11082022 

(END) Dow Jones Newswires

August 11, 2022 01:29 ET (05:29 GMT)

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