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Almirall's net profit falls 39% in Q1 as it looks for M&A opportunities

By Reuters

By Joan Faus

BARCELONA (Reuters) -Spanish pharmaceuticals group Almirall said on Monday its first-quarter net profit fell 38.7% to 29.8 million euros ($36.2 million) and revenues by 10%, as the company looks for merger and acquisition (M&A) opportunities.

The Barcelona-based firm continued to be hurt by the pandemic as mobility restrictions led to fewer patients going to the doctor, while sales suffered from generic competition in the United States.

It said on Monday it predicts COVID-19 will continue to affect its operations in the first half, before its impact lessens in the second half of the year.

With Gianfranco Nazzi recently sworn as chief executive after leaving Israel’s Teva Pharmaceuticals Industries, Almirall said it would look for external opportunities that would strengthen its main business and presence in key markets.

“The solid results in 2020 and 2021’s first quarter confirm that we are on the right track and strengthen our position in medical dermatology,” Nazzi said in a statement.

He said the company would invest in new products to achieve mid-term growth.

Chairman Jorge Gallardo said on Friday Almirall was looking for new dermatology opportunities in the United States.

It reiterated its 2021 guidance for mid-single digit percentage growth in core sales, and for earnings before interest, tax, depreciation and amortisation (EBITDA) of 190 million to 210 million euros, up from 181 million euros in 2020.

EBITDA fell 16% in the first quarter to 74.2 million euros, while total revenue reached 222.5 million euros, higher than had been expected by analysts polled by Refinitiv.

Its first-quarter net profit decline was steeper than the 29.9% registered in 2020. Financial debt had increased slightly since end 2020, to 475.8 million euro.

($1 = 0.8229 euros)

(Reporting by Joan Faus; Editing by Inti Landauro and Jan Harvey)