Three-month interim report (Q1) 2022
ALK reports Q1 revenue 11% growth with tablet sales up 24% and profits up 20% (unaudited)
ALK posted strong financial performance in the first quarter, with revenue up 11% and tablets as the main driver of growth with sales up 24%. Sales growth and efficiencies led to further improvement in gross margin, and operating profit (EBITDA) increased by 20%. ALK’s financial outlook for 2022 is maintained.
First Quarter 2022 Financial Highlights
- Total revenue grew by 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) thanks to widespread growth, particularly in Japan, and tablets now account for 50% of overall sales.
- Combined sales of SCIT and SLIT-drops increased 2% on strong growth in international markets, particularly China, while sales of other products decreased 5%.
- Gross margin improved by 2 percentage points to 64% driven by sales growth and efficiency.
- Operating profit (EBITDA) increased by 20% in reported currency to DKK 272 million (226), mainly driven by strong sales growth and improved gross margin, while R&D expenditure and sales and marketing increased as expected.
- Free cash flow was DKK 38 million (86) impacted by changes in working capital.
Key events and strategic advances
ALK continued to make good progress on its strategic priorities and remained robust in the face of other challenges. In the 1st trimester:
- ALK has received a clinical trial waiver from the Chinese authorities, allowing ALK to submit a registration dossier for its dust mite allergy tablet in 2022, without finalizing the suspended local phase III trial.
- ALK is finalizing plans for early clinical development of its peanut allergy tablet and expects to initiate a phase I trial soon.
- ALK has established an exclusive license agreement with Dr. Reddy’s Laboratories which will lead to the future introduction of ALK’s dust mite tablet in India.
- As expected, COVID continued to somewhat distort allergy markets in the first quarter, with infections once again restricting the ability and willingness of allergy patients to seek treatment to varying degrees, particularly in some European markets.
2022 financial outlook maintained
Based on the performance of the first three months and the forecast for the rest of the year, ALK maintains its outlook for the full year:
- Revenue is expected to grow another 8-12% in local currencies, with tablet sales up around 20%.
- EBITDA is expected to further increase to DKK 625-725 million (2021: DKK 534 million) driven by sales growth, gross margin improvement and efficiency gains.
Horsholm, May 12, 2022
Comparative figures for 2021 are indicated in parentheses. Turnover ggrowth rates are expressed in local currenciesUnless otherwise stated
For more information, contact:
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjaer, mobile +45 3050 2014
Today, ALK is hosting a conference call for analysts and investors at 1h30 afternoon (CEST) during which management will provide an update on the financial results and outlook. The conference call will be broadcast in audio on https://ir.alk.net where the relevant presentation is available shortly before the start of the call. Please call before 1.25 afternoon (CEST). Danish participants should call at tel. +45 3544 5577 and international participants should call tel. +44 333 300 0804 or +1 631 913 1422. Please use the participant’s PIN: 67379541#.