In This Article:
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Net Revenue: $680 million, an increase of 11.9% year-over-year, or 7.2% on a like-for-like constant exchange rate basis.
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EBITDA Margin: 39.7%.
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Adjusted Net Income: $175.5 million, up 7.2% from the previous year.
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Specialty Primary Care Growth: 5% like-for-like at constant exchange rate.
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Rare Disease Growth: 11.5% like-for-like at constant exchange rate.
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Free Cash Flow: Almost 90% of adjusted net income, ahead of prior year.
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Leverage: Reduced to just below 2.2 times the last twelve months EBITDA on a proforma basis.
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Urology and Cardiovascular Growth: Mid to high single-digit rates.
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GI Franchise Growth: Double digits.
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OTC Products Performance: Strong growth, with Magnesio Supremo leading in Italy.
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Hema-Oncology Franchise Growth: Driven by Sylvent and Enjaymo.
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US Revenue Contribution: Enjaymo contributed approximately 17 million.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Recordati SpA (RCDTF) reported a net revenue of $680 million for Q1 2025, marking an 11.9% increase compared to the previous year.
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The company's specialty and primary care business saw a 5% growth, while the rare disease business grew by 11.5% on a like-for-like basis at constant exchange rates.
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Recordati SpA (RCDTF) achieved an EBITDA margin of 39.7%, demonstrating robust top-line performance and operating leverage.
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The company received timely FDA approval for the label extension of Syriza into Cushing's syndrome in the US, enhancing its market potential.
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Recordati SpA (RCDTF) confirmed its full-year 2025 financial targets and expects continued positive momentum, projecting double-digit growth across key financial metrics by 2027.
Negative Points
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The company faced increased finance expenses and a higher tax rate, which partially offset higher operating income.
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Sales of Avodart combo were softer, particularly in Spain and the Andalusia region.
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The cough and cold season was weaker than expected in Russia and Turkey, impacting sales in those regions.
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Forex headwinds are expected to create challenges, although the company remains committed to margin accretion versus 2024.
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The net financial expenses were above the expected rate, influenced by FX volatility and non-monetary losses.
Q & A Highlights
Q: Could you provide feedback on the initial uptake of Enjaymo since its transition to Recordati, and do you expect the cough and cold recovery to be gradual or more weighted? Also, how do you see margins developing over the year? A: The uptake of Enjaymo has been incredibly positive, with a seamless transition from Sanofi to Recordati. We are optimistic about its future, with strong momentum in the US, Japan, and Europe. For cough and cold, we expect a normal season for the rest of the year, with growth stabilizing. Regarding margins, Q1 is typically our strongest quarter, and we expect both sectors to ease over the remainder of the year, with no major differences across them.