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• Organic Revenue Growth: 18% across regions and product lines.

• Tapti Revenue Growth: 29% globally, 27% in Europe.

• EBIT Margin: Increased by 10 percentage points from 13% to 23% year-on-year.

• Revenue from Europe: Up 21% with double-digit growth in key markets.

• Tablet Sales Growth in Europe: 27% driven by higher volumes.

• North America Sales Growth: 3% overall, with tablet sales up 13%.

• International Markets Revenue Growth: 27%, with tablet revenue up 39%.

• Global Tablet Revenue Growth: 29% across all sales regions.

• Gross Margin: 64.3%, an improvement of more than 1 percentage point.

• Operating Profit (EBIT): 886 million Danish Krona, a 91% improvement in local currencies.

• Free Cash Flow: Improved to 425 million Danish Krona.

• Full Year Revenue Growth Outlook: 14% to 16%.

• Full Year EBIT Margin Outlook: 19% to 21%.

• Warning! GuruFocus has detected 3 Warning Signs with CYRBY.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alk-Abello AS (AKBLF) reported an 18% organic revenue growth across regions and product lines in Q3.

• The company successfully increased its EBIT margin by 10 percentage points year-on-year, from 13% to 23%.

• Sales of the adrenaline auto-injector, JEXT, more than doubled, recovering from last year's supply shortages.

• The implementation of the Energy Plus strategy is progressing well, with new initiatives in the allergy space.

• Alk-Abello AS (AKBLF) confirmed its full-year outlook, expecting 14-16% top-line growth and an EBIT margin of 19-21%.

Negative Points

• Growth in North America was soft, with only a 3% increase in sales.

• Sales of other products in North America, such as diagnostics and Pre-Pen, decreased by 4%.

• The integration of Pre-Pen operations has been completed, but sales continue to perform below expectations.

• The company faces challenges in the US market, particularly with sluggish performance in some business segments.

• There are anticipated additional one-off costs related to the revisions of plans and activities in China.

Q & A Highlights

Q: Can you provide insights on the gross margin improvement and expectations for future growth? A: The gross margin improvement is driven by increased tablet sales, which have high margins. We aim for a 1% point improvement year-on-year, though there may be fluctuations. The environment remains volatile with price increases and inflation, so 1% is our target. (Claus Solje, CFO)

Q: What is causing the fluctuation in R&D costs in Q4, and what will trigger the increase to reach the 10% sales ratio? A: Q4 is typically our highest investment quarter. We've accelerated some initiatives, such as the peanut trial and preparations for the Chinese trial, which have increased costs. These investments are within our full-year guidance. (Claus Solje, CFO)