Spain’s Almirall shares tank as he reports nine-month net loss

Band Joan Faus

BARCELONA, November 15 (Reuters)Spanish pharmaceutical company Almirall ALM.MC said on Monday it had remained in the red for the first nine months, causing its shares to fall nearly 8% when the market opened, even after raising its guidance for the full year again.

Almirall said it recorded a net loss of € 39.4 million ($ 45.15 million) in the first nine months of the year due to the € 103 million write-down of the book value of ‘an acne medication. The company had made a profit in the same period a year ago.

Nine-month basic profit before interest, taxes, depreciation and amortization (EBITDA) fell 4.4% from the same period a year ago to $ 181.2 million.

Third quarter EBITDA was 44.6 million euros, down 14.9% from the same period a year ago and slightly below Refinitiv’s estimate of 45 , 7 million euros.

The shares traded down 7.6% to 11.74 euros by mid-morning.

But the company was optimistic for the end of the year. “We are seeing excellent momentum towards the fourth quarter,” Managing Director Gianfranco Nazzi said in a statement.

But analysts are disappointing on the numbers, even though the Barcelona-based company said it expected its core EBITDA to end the year between € 200m and € 215m, up from a previous target of at least 195 million euros.

CM Capital Markets said results were overall negative for the stock as Almirall reported higher net losses than expected by market consensus.

Jefferies said the key metrics were below his estimate and market consensus, but said he remains confident in Almirall’s dermatology portfolio over the medium to long term.

The company said its overall revenue increased 6.2% to € 603.7 million as the impact of the COVID-19 pandemic eased further.

($ 1 = 0.8726 euros)

(Report by Joan Faus, edited by Inti Landauro)

((joan.faus@thomsonreuters.com;))

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