Kamada Ltd Reports Record 2024 Earnings and Positive 2025 Outlook

Kamada Ltd ((IL:KMDA)) has held its Q4 earnings call. Read on for the main highlights of the call.

Kamada Ltd’s recent earnings call painted a picture of robust financial health and strategic growth. The company reported record revenues and adjusted EBITDA for 2024, driven by successful product launches and the expansion of plasma collection centers. Despite facing increased operating expenses and financial challenges in the fourth quarter, Kamada expressed a positive outlook for 2025, underscored by expected revenue and EBITDA growth and the declaration of a special dividend.

Record-Breaking Revenue and Growth in 2024

Kamada Ltd achieved a significant milestone in 2024, recording total revenues of $161 million, a 13% increase over the previous year. The company’s adjusted EBITDA also saw a remarkable 42% year-over-year growth, reaching $34.1 million. These results underscore Kamada’s strong market position and effective operational strategies.

Strong Financial Position and Special Dividend

The company generated $47.6 million in cash from operations, ending the year with a robust balance sheet and $78.4 million in cash. This financial strength allowed Kamada to announce a special cash dividend of $0.20 per share, reflecting confidence in its financial stability and future prospects.

Positive Outlook for 2025

Looking ahead, Kamada forecasts annual revenues for 2025 to be between $178 million and $182 million, with adjusted EBITDA expected to rise to $38 million to $42 million. This represents an anticipated revenue increase of approximately 12% and a 17% rise in adjusted EBITDA over 2024, highlighting the company’s growth trajectory.

Expansion of Plasma Collection Centers

Kamada expanded its plasma collection capabilities by opening a second center in Houston, Texas, and completing construction of a third in San Antonio, Texas. These centers are expected to contribute $8 million to $10 million in annual sales of normal source plasma, bolstering the company’s revenue streams.

Successful Product Launches and Contracts

The company launched its first biosimilar product in Israel and secured a three-year contract for the supply of KAMRAB and VARIZIG in Latin America, projected to generate approximately $25 million in revenue. These developments demonstrate Kamada’s ability to penetrate new markets and secure lucrative contracts.

Increased Operating Expenses

Operating expenses rose to $49.9 million in 2024, driven by marketing activities in the U.S. and the advancement of the inhaled AAT clinical trial. While these expenses impacted the bottom line, they are part of Kamada’s strategic investments in future growth.

Challenges with Net Income in Q4 2024

The fourth quarter of 2024 saw a reduction in net income compared to the previous year, attributed to increased financial expenses from the revaluation of contingent consideration. This highlights some of the financial challenges Kamada faced towards the end of the year.

Forward-Looking Guidance

Kamada provided a robust financial outlook for 2025, with expectations of continued growth driven by the expansion of its commercial portfolio, business development, and M&A activities. The company is also advancing its plasma collection operations and ongoing Phase 3 pivotal trial for an inhaled AAT product, targeting a $2 billion market.

In conclusion, Kamada Ltd’s earnings call highlighted a year of record-breaking financial performance and strategic growth initiatives. Despite some challenges, the company’s positive outlook and strategic investments position it well for continued success in 2025. Investors and stakeholders can look forward to Kamada’s ongoing expansion and market penetration efforts.