Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vistin Pharma ASA (LTS:0RAM, Financial) achieved a record high EBITDA of NOK 29 million in Q3 2024, up from NOK 27 million in the same quarter last year.
- The company reported an all-time high production volume of 1,500 metric tons, indicating strong operational utilization.
- Vistin Pharma ASA distributed a cash dividend of NOK 1.25 per share in 2024, with an additional NOK 0.5 per share planned for Q4.
- The company benefits from a long-term renewable energy supply agreement with Statkraft, ensuring 100% green renewable hydropower energy until 2032.
- Vistin Pharma ASA is strategically positioned in the growing metformin market, which is expected to grow by 4% to 6% annually.
Negative Points
- Revenue for Q3 2024 decreased to NOK 106 million from NOK 120 million in Q3 2023, primarily due to lower sales volume and decreased global metformin prices.
- Net profit for Q3 2024 was NOK 16.6 million, down from NOK 23.5 million in the same quarter last year.
- The company experienced a decrease in sales volume to 1,300 metric tons in Q3 2024, down from 1,440 metric tons in Q3 2023.
- Vistin Pharma ASA's net finance was negative NOK 2.8 million in Q3 2024, compared to a positive NOK 7.3 million in Q3 2023.
- The gross margin of 68% in Q3 2024, while strong, is considered unsustainable over time according to the company's CFO.
Q & A Highlights
Q: Can you provide details on the recycling of cooling water for reactors project?
A: Alexander Karlsen, CFO: We have invested around EUR 1.21 million to EUR 1.3 million in recycling water used in production. Previously, we used drinking water, which was costly. The recycling project, installed over the summer, is now in the testing phase and is on track for both investment costs and expected savings.
Q: Are there plans to increase ownership in CF Pharma?
A: Magnus Tolleshaug, CEO: We are exploring options with CF Pharma, a contract research and manufacturing organization. We aim to become a contract development and manufacturing organization, so we are considering different collaboration or ownership options. We have a good dialogue with CF Pharma's management but cannot disclose more at this moment.
Q: Will there be a return of capital in Q4?
A: Alexander Karlsen, CFO: Yes, the plan is to return capital in Q4.
Q: How do you expect metformin prices to develop?
A: Magnus Tolleshaug, CEO: Metformin prices are driven by raw material costs, as it is a commodity product. Our aim is to maintain a gross margin above 60%. Prices peaked during COVID due to high raw material and freight costs, which have since decreased. We expect metformin prices to follow normal commodity trends going forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
