LSL PHARMA GROUP REPORTS RECORD REVENUES AND FIRST QUARTER 2025 RESULTS

Cision Canada

29-05-2025

Filed 6 new Eye-care products with Health Canada
5 th consecutive positive EBITDA performance
BOUCHERVILLE, QC, May 29, 2025 /CNW/ - LSL PHARMA GROUP INC. (TSXV: LSL) (the " Corporation" or " LSL Pharma"), a Canadian integrated pharmaceutical company, today reported record quarterly revenues and its financial results for the first quarter of its 2025 fiscal year, ended March 31, 2025, with comparable results for the prior year ("Q1-25" and "Q1-24"). All amounts are presented in thousands of Canadian dollars.
Q1-25 vs Q1-24
Record quarterly revenues of $6.6 million compared to $4.2 million, up 59%;
CMO revenues of $5.7 million compared to $1.4 million, up 300%;
Eye-care revenues of $0.9 million compared to $2.7 million, down 68%;
Operating Profit was $0.4 million, up 150%;
Net loss of $0.2 million, down 44%;
Adjusted EBITDA of $0.9 million compared to $0.5 million, up 79%.
Corporate Development
Completed the purchase of a new state-of-the-art manufacturing line to increase production capacity at the Steri-Med Pharma plant and facilitate the development of new Eye-care products;
Appointed Mr. Louis Laflamme to its board of directors. Mr. Laflamme was President, CEO and director of OpSens Inc. (TSX: OPS) from January 2013 to March 2024 prior to its acquisition for $345 million.
Subsequent to the end of Q1-25
Entered into two strategic agreements to expand the Eye-Care pipeline with up to ten (10) new eye-drop products;
Completed the regulatory filing of six (6) new Eye-care products with Health Canada to expand its Eye-care product portfolio;
Subsequent to the end of the quarter, the Corporation was notified of a court ruling against LSL Laboratory Inc. regarding a dispute over certain costs related to the building and relocation of its plant in 2022. The amount of the ruling amounts to $0.3 million plus interest. The Corporation intends to vigorously contest this ruling and is currently assessing its rights to appeal the court decision. Should the Corporation be required to pay any amount under this claim, such amount would be capitalized as leasehold improvement representing an addition to our long-term assets.
"Q1-25 was another great quarter for LSL Pharma. The Dermolab Pharma and Virage Santé acquisitions have been fully integrated into our CMO platform and providing material impact on our results", mentioned Francois Roberge, President and CEO of LSL Pharma. "Our Eye-care operations, a strategic priority, have already met several key milestones since the start of the year with 1) significant progress for securing FDA approval to manufacture Avaclyr and other products for the US market, 2) filing of 6 new eye-care products with Health Canada, and 3) initiated the installation of our new $1.7M state-of-the-art ointment filing line", added M. Roberge.
"Both Virage Santé and Dermolab contributed a full quarter in Q1-25 and helped LSL Pharma reach record quarterly revenues, including a significant 4-fold increase of our CMO revenue. We achieved a 59% increase of our total revenues despite a 68% decline for our Eye-care segment which benefited from non-recurrent revenues in Q1-24. Q1-25 results provide a solid base for the next phase of our development to drive continuous financial performance improvement in the coming quarters" said Luc Mainville, Executive Vice-president and CFO of LSL Pharma.
First Quarter Financial Results – Three-Month Period Ended March 31, 2025
Change
Q1-25
Q1-24
$
%
Revenues
CMO
5,748
1,438
4,310
300 %
Eye-Care
877
2,725
(1,848)
-68 %
Total Revenues
6,625
4,163
2,462
59 %
Gross profit (loss)
2,106
1,146
960
84 %
Adjusted Gross Profit
2,542
1,480
1,062
72 %
SG&A
(1,659)
(967)
(692)
72 %
Operating Profit
447
179
268
150 %
Share-based Compensation
(14)
-
(14)
100 %
Financial Expenses
(588)
(459)
(129)
28 %
Net loss
(155)
(280)
125
-45 %
EBITDA
904
513
391
76 %
Adjusted EBITDA
918
513
405
79 %
ADJUSTED GROSS PROFIT RECONCILIATION
Change
Q1-25
Q1-24
$
%
Revenues
6,625
4,163
2,462
59 %
Gross profit
2,106
1,146
960
84 %
Gross profit as % of revenues
31,8 %
27,5 %
4,3 %
(+/-) Adjustments
Depreciation and amortization
436
334
102
31 %
Adjusted Gross Profit
2,542
1,480
1,062
72 %
Adjusted Gross Profit as % of revenues
38,4 %
35,6 %
2,8 %
ADJUSTED EBITDA RECONCILIATION
Change
Q1-25
Q1-24
$
%
Net loss
(155)
(280)
125
-41 %
Finance expense, net
588
459
129
27 %
Depreciation and amortization
471
334
137
44 %
EBITDA
904
513
391
78 %
% of revenues
13,6 %
12,3 %
1,3 %
(+/-) Adjustments
Stock-based compensation
14
-
14
100 %
Adjusted EBITDA
918
513
405
79 %
% of revenues
13,9 %
12,3 %
1,5 %
Adjusted Gross Margin, EBITDA, and Adjusted EBITDA are non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to Non-IFRS Financial measures for additional details.
Revenues - The Corporation delivered record quarterly revenues in Q1-25, at $6.6 million, up 59% compared to Q1-24. Due to the addition of revenues from Dermolab and Virage Santé, both acquired last year, CMO revenues quadrupled at $5.7 million in Q1-25 compared to $1.4 million for Q1-24, a 300% increase. Also, CMO revenues benefited from the growth in revenues at LSL Laboratory which is now leveraging the capital investments made over the last 2 years for expanding its service offering and capacity. Revenues from the Eye-care division were down 68% during Q1-25 compared to Q1-24. Last year, Q1-24 revenues benefited from important non-recurrent sale of products to the US under an FDA exemption due to a local shortage of Erythromycin (the "US Shortage"). Such sales ended in Q1-24.
Adjusted Gross Profit for Q1-25 after eliminating the impact of depreciation and amortization, stood at $2.5 million, a 72% increase over Q1-24. Adjusted Gross Profit benefited from the contribution of Dermolab and Virage Santé for the full quarter. The increased production at all 4 sites also contributed to improve gross profit as the plants were able to increase production compared to last year.
SG&A expenses for Q1-25 were $1.7 million compared to $1.0 million in Q1-24, a 72% increase, mainly due to the addition of Dermolab and VSI. The increase in SG&A expenses was in line with the increase in revenues. We expect SG&A expenses to decrease as a % of total revenues going forward.
Operating Profit - LSL Pharma generated operating profits in Q1-25 at $0.4 million compared to a $0.2 million last year. The $0.3 million, or 150% improvement was due to the strong increase in revenues, and increased production for all 4 sites.
Financial Expenses for Q1-25 were 28% higher than Q1-24. Despite the conversion and repayment of several debt/loans during the year, financial expenses for Q1-25 were impacted by the increased expenses on lease facilities as the LSL Laboratory, addition of the Dermolab lease starting December 2024. Several initiatives were taken during last year to reduce the cost of carrying our various loans and debts. These initiatives should help reduce our cost of capital for the upcoming year.
Net loss - For the Q1-25 period, the Corporation reduced its net loss by 45% compared to Q1-24 at $0.2 million. The Quarter-over-Quarter performance was due to an increase in gross profit between the periods derived from the strong increase in revenues which more than offset the increase in SG&A and financial expenses.
EBITDA for Q1-25, after eliminating the impact of financial expenses, depreciation and amortization was $0.9 million compared to $0.5 million for Q1-24, representing a strong 76% increase.
Adjusted EBITDA - After eliminating share-based compensation, and other non-recurrent items, Adjusted EBITDA for Q1-25 was a $0.9 million profit compared to $0.5 million for Q1-24 representing a 79% improvement.
Selected Balance Sheet items
Change
As at the end of the period
Q1-25
YE-24
$
%
Current assets
17,693
15,376
2,317
15 %
Fixed assets
22,941
22,939
2
0 %
Intangible assets
13,430
13,272
158
1 %
Total assets
55,987
53,510
2,477
5 %
Current liabilities
11,721
9,652
2,069
21 %
Long-term notes payable
3,629
3,621
8
0 %
Long-term debt excluding lease liabilities
9,604
8,903
701
8 %
Total Liabilities
31,236
28,618
2 618
9 %
Shareholders' equity
24,751
24,892
(141)
-1 %
Current assets increased by 15% at the end of Q1-25 compared to YE-24. The $2.3 million increase comes mainly from a $2.6 million increase in inventory, partly offset by a decrease in cash, accounts receivable and prepaids. Our inventory level at the end of Q1-25 reflects the increase in operating and commercial activities during quarter compared to the last portion of FY-24.
Total Assets increased by 5% at the end of Q1-25 compared to YE-24, a $2.5 million increase in line with the increase in short-term assets plus a nominal increase in intangible assets as the Corporation kept investing in its Eye-care product pipeline.
Current liabilities have increased by $2.1 million in Q1-25 with accounts payable increasing by $1.2 million, the addition of a $0.75 million note and $0.6 million of other liabilities, partly offset by a $0.3 million decrease in the short-term portion of LTD. The increase in short-term liabilities was in line with the increase in short-term assets.
Long-term notes payable and long-term debt excluding lease liabilities increased by $0.7 million between YE-24 and the end of Q1-25 reflecting further advances from Finacces Capital, and extension of some equipment loans.
Total liabilities increased by 9% at the end of Q1-25 compared to YE-24. The increase in total liabilities resulted mainly from the increase in short-term liabilities.
Shareholders Equity decreased slightly in Q1-25, reflecting the nominal loss for the period.
Financial Statements and MD&A
LSL Pharma Group's unaudited financial statements and Management's Discussion and Analysis for Q1-25 are available on SEDAR+ at www.sedarplus.ca and on the Corporation's website.
Caution regarding forward-looking statements
This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward looking statements include estimates and statements that describe the Corporation's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition, belief, estimate or opinion, or result to occur. Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "believe", "aim", "plan" "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.
Readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that any of the events referred to in the forward-looking statements will transpire, and if any of them do, the actual results, performance or achievements of the Corporation may differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date of this press release. The Corporation does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About LSL Pharma Group Inc.
LSL Pharma Group Inc. is a Canadian integrated pharmaceutical company specializing in the development, manufacturing, and marketing of high-quality sterile ophthalmic pharmaceuticals, as well as cosmetic, pharmaceutical, and natural health products in solid, semi-solid and liquid dosage forms. For further information, please visit the Corporation's website www.groupelslpharma.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Groupe LSL PHARMA INC.