STOCKHOLM - EQL has reported its financial results for the second quarter of the financial year 2023/24, demonstrating resilience in the face of a global antibiotics shortage. The company's consolidated sales decreased to SEK 59.6 million during the period from July to September 2023, but showed a rise when adjusted for non-recurring sales. Despite the challenges, EQL achieved growth in Q2 and maintains a positive outlook for the remainder of the year.
The quarter was marked by a significant penicillin shortage due to the ongoing war in Ukraine, which impacted the global market. However, EQL's strategic moves, such as winning tenders in Sweden and Denmark for Glyronul and Copneg, as well as launching Mellozzan in new markets including Germany and Austria, have helped mitigate some of the adverse effects. The company also expanded its pipeline with three niche generics, contributing to its robust performance.
For the first half of the financial year, running from April to September 2023, EQL's consolidated sales were slightly lower at SEK 115.8 million but experienced a notable 23% increase after adjusting for non-recurring items. The gross profit marginally declined by 4% to SEK 50.1 million, while EBIT stood at SEK 14.5 million.
The CEO highlighted that despite no significant Covid-19 test sales in Q2 and the antibiotics shortage, EQL managed to grow. With key antibiotics expected to be back in stock by year-end and new product launches such as Mellozzan in Norway and Denmark, along with collaborations in Germany and France for Memprex, the company is optimistic about its growth trajectory. The expansion of EQL's portfolio from 26 to 28 products supports this outlook, with a targeted growth of 30% for the full year.
EQL's performance is a testament to its adaptability and strategic planning in navigating market disruptions while continuing to serve its customers effectively. The company's efforts to expand its market presence and product portfolio underscore its commitment to sustained growth amid challenging industry conditions.
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