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EQL Pharma Delivers Record Sales but Margin Hit Forces Sharper Focus and Slower Pipeline

Story Highlights
  • EQL Pharma posted record quarterly sales but saw margins and EBIT fall on one-off costs and logistics pressures.
  • The group is pruning its portfolio, delaying launches and reinforcing its five-year growth plan around new products and expansion.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
EQL Pharma Delivers Record Sales but Margin Hit Forces Sharper Focus and Slower Pipeline

Meet Samuel – Your Personal Investing Prophet

EQL Pharma AB ( (SE:EQL) ) has shared an update.

EQL Pharma reported record quarterly sales of SEK 120.2 million for the fourth quarter, up 6% year-on-year, but profitability weakened as gross margin fell to 28% and EBIT to SEK 5.1 million, hit by SEK 13 million in one-off items and elevated logistics costs. Cash stood at SEK 86.8 million and leverage rose to 5.0x EBITDA, prompting a slowdown in pipeline additions and a focus on margin recovery and cost discipline.

The company pruned its portfolio and pipeline to sharpen focus, removing lower-potential products while adding niche generics, and it continues to target about 15% sales growth in 2026/27, below earlier expectations due to launch delays. Despite supply chain disruptions tied to geopolitical tensions and short-term pressure on margins and leverage, management is maintaining its five-year plan, anchored on roughly 30 planned launches, international expansion of Mellozzan and Memprex and operational efficiency improvements, which are key for long-term growth and stakeholder confidence.

More about EQL Pharma AB

EQL Pharma AB is a specialty pharmaceutical company focused on generic and special generic medicines, with a portfolio of 47 products and a pipeline of 44. The company is expanding in European markets including Germany, the Netherlands, Ireland and the Benelux region, with key branded products Mellozzan and Memprex gaining new territories and partners.

Average Trading Volume: 24,842

Technical Sentiment Signal: Hold

Current Market Cap: SEK1.45B

Find detailed analytics on EQL stock on TipRanks’ Stock Analysis page.

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