Three-month interim report (Q1) 2022
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 efficiencies.
- 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 capital.
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
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://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#.
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