EUR 100.00 For Business Accounts Only

ALMIRALL: 1Q’21 RESULTS (ANÁLISIS BANCO SABADELL)

1Q'21 vs. 1Q'20 Results:
Sales: € 220.6 M (-8.6% vs. -15.3% BS(e) and -16.0% consensus);
EBITDA: € 74.2 M (-16.0% vs. -38.3% BS(e) and -36.8% consensus);
EBIT: € 45.0 M (-21.7% vs. -59.1% BS(e) and -57.4% consensus);
Net Profit: € 29.8 M (-38.7% vs. -65.8% BS(e) and -66.7% consensus);

The 1Q’21 results came in slightly above expectations on the operating level (€ 74 M of EBITDA vs. € 55 M BS(e) and € 56 M consensus) thanks to one-offs (sale of a small product in Spain and licence of a product), excluding these factors results would have been only slightly above estimates. Including these one-offs, sales fell by -9% (vs. -15% BS(e) and -16% consensus), whereas margins improved by +410bps sequentially to 33.6%. However, excl. one-offs, the margins would stand at 28.4% (vs. 26.7% BS(e) and 27.5% consensus), which would be partially due to lower R&D spending (-37% vs. 1Q’20 vs. -5% BS(e)). In Net Profit (€ 29.8 M vs. € 17 M BS(e) and € 16 M consensus), we highlight a positive FX impact of €+5.6 M, and the deterioration of the non-exercised option on Bioniz totalling €-12.4 M (without impact on cash). NFD performed well, falling -16% to € 257 M excl. pension plans (~1.2x NFD/EBITDA vs. € 304 M BS(e)) thanks to the better operating performance.
As for prospects, the company maintains its guidance’21 of EBITDA between € 215-235 M (vs. € 225 M BS(e) and € 227 M consensus), as expected. Thus, the 1Q’21 Results came in slightly better on the operating level in recurring terms, and we expect a slightly positive reception due to the effect from the one-offs and despite the recent performance (+9% since 4Q’20 results; -2% vs. IBEX). The share price is currently climbing +6.6% (+6% vs. IBEX), which we believe is not justified by these 1Q’21 Results. Conference call at 10;00 (CET), where we expect further details on the underlying performance of the different businesses. BUY. T.P. € 15.50/sh. (upside +20.16%).