EBITDA (operating profit before depreciation and
amortisation) increased 20% in reported currency to
DKK 398 million (331), driven by the higher sales and
improving gross margin. Exchange rates had only a
minor effect on operating profit.
The updated financial outlook is based on the
following assumptions:
Revenue
ALK still expects broad-based growth across all sales
regions in 2021 with tablets key to overall growth.
Tablet sales growth is still expected at 25% or slightly
above and this is now supported by further
improvement to the sales outlook for the combined
SCIT/SLIT-drops portfolio.
Net financials were a loss of DKK 8 million (loss of
44), mainly relating to interest payments and loan
fees. Tax on the profit totalled DKK 62 million (59)
and net profit was DKK 143 million (56).
Cash flow from operating activities improved to
DKK 310 million (106) driven by higher earnings,
receipt of a milestone payment related to the recently
established Jext® partnership for China and other
changes in working capital due to the timing of
payments. Cash flow from investment activities
was DKK minus 161 million (minus 173), mainly on
upgrades to legacy production and the build-up of
capacity for SLIT-tablet production. Free cash flow
was positive at DKK 149 million (minus 67).
ALK’s current assumption for Q4 is that, in general,
patients will remain able and willing to visit healthcare
professionals without significant limitations. However,
ALK cannot rule out that COVID may affect selected
countries over the coming months.
Operating profit
The gross margin is now expected to increase by ~2
p.p. (previously: 1-2 p.p.), driven by efficiencies and
higher sales – especially from tablets. Capacity costs
will still be influenced by a gradual normalisation of
sales and marketing expenditure and a significant
increase in R&D costs to complete the clinical
development of the tablet portfolio. R&D costs are still
estimated at around DKK 625 million.
Cash flow from financing activities was DKK minus
236 million (minus 61), relating to the settlement of
incentive programmes and a refinancing of ALK’s loan
and credit facilities. Currently, ALK has DKK 1.5 billion
in credit facilities running until 2024, of which, DKK 1.2
billion is currently unused.
Free cash flow
The improved free cash flow now reflects the revised
earnings outlook and a recent deferment to 2022 of a
one-off repayment of up to DKK 175 million in accrued
rebates. Free cash flow is assumed be impacted
positively by other changes in working capital, mainly
related to timing of various payments. CAPEX
projections are now expected at ~DKK 250 million
(previously: 250-300). The outlook also still includes
the upfront payment related to the new Jext®
partnership in China.
At the end of September, ALK held 163,365 of its own
shares or 1.5% of the share capital, versus 1.9% at
the end of 2020, and 2.0% at the end of September
2020.
Equity totalled DKK 3,314 million (3,203) at the end of
the period, and the equity ratio was 58% (57%).
Outlook for 2021
Based on its performance in the first nine months, ALK
has updated its full-year financial outlook to reflect
improvement to both sales and gross margin. As a
result:
Other assumptions
Other than the newly established partnership in China,
the outlook does not include any revenue from
acquisitions, additional partnerships or in-licensing,
nor does it include any sizeable payments related to
M&A or in-licensing. The outlook is based on current
exchange rates, resulting in a negative effect of less
than 1 percentage point on reported revenue growth
and an immaterial effect on reported EBITDA.
Revenue is now expected to grow 11-12% in local
currencies (previously: 10-12).
EBITDA is now expected to increase to DKK 500-
550 million (previously: 450-500) with a gross
margin improvement over last year of ~2 p.p.
(previously: 1-2 p.p.). ALK still expects an
unchanged increase in R&D expenses and a
gradual normalisation of sales and marketing
activities compared to last year, which was affected
by COVID.
Free cash flow is now expected to be positive at
~DKK 200 million (previously: ~minus 100) mainly
reflecting the revised earnings outlook and timing
of repayment of accrued rebates.
Page 5 of 15
Company release No 18/2021 – 11 November 2021
ALK-Abelló A/S – Bøge Allé 6-8 – DK-2970 Hørsholm – Denmark – www.alk.net
Tel +45 4574 7576 – CVR No 63 71 79 16 – LEI code: 529900SGCREUZCZ7P020