LSL PHARMA GROUP REPORTS THIRD CONSECUTIVE RECORD QUARTERLY REVENUES AND Q2 2025 FINANCIAL RESULTS
Expanded Eye-Care portfolio by signing two agreements to market up to 16 sterile eye drops in Canada
Entered into a non-binding letter of intent to acquire a Quebec-based CMO
Filed supplemental information to the FDA to qualify Steri-Med for manufacturing ointment products for the US market
Secured $17.5 million bank financing
Redeemed $3.3 million publicly listed convertible debentures trading as LSL.DB
BOUCHERVILLE, QC, Aug. 25, 2025 /CNW/ - LSL PHARMA GROUP INC. (TSXV:LSL) (the "Corporation" or "LSL Pharma"), a Canadian integrated pharmaceutical company, today reported third consecutive record quarterly revenues and its financial results for the second quarter of its 2025 fiscal year, ended June 30, 2025 ("Q2 2025" and "Year-to-date 2025"). All amounts are presented in thousands of Canadian dollars.
Q2 & YTD 2025 FINANCIAL HIGHLIGHTS (comparisons are to the respective 2024 periods)
Revenues were $7.2 million and $13.8 million for Q2 and YTD 2025, compared to $4.2 million and $8.4 million, representing increases of 72% and 66% respectively;
Adjusted EBITDA was $1.0 million and $2.0 million for Q2 and YTD 2025, compared to $0.7 million and $1.2 million, representing increases of 56% and 66% respectively;
Net loss was $0.4 million and $0.5 million for Q2 and YTD 2025, compared to $0.5 million and $0.8 million, representing improvements of 25% and 32% respectively;
CMO revenues increased 165% and 215% respectively for Q2 and YTD 2025 reflecting the impact of the Virage Santé and Dermolab Pharma acquisitions;
Q2 2025 AND SUBSEQUENT CORPORATE HIGHLIGHTS
Expanded Eye-Care portfolio by signing two agreements to market up to ten (10) eye-care products in Canada. The two agreements have since been amended to include up to 16 new products, 6 of which have already been filed with Health Canada.
Entered into a non-binding letter of intent to acquire a Quebec-based CMO. The transaction, if completed, would be accretive and add $8 to 10 million to the CMO segment revenues.
Filed supplemental information to the FDA to qualify Steri-Med for manufacturing ointment products for the US. Approval is expected before year-end 2025 and would initially permit the manufacture of Avaclyr.
Secured $17.5 million bank financings from Desjardins and BDC to provide some $6 million of additional financing/facility after redemption and repayment of publicly listed convertible debentures and other bank debts.
"We achieved record revenues in Q2 2025 for the third consecutive quarter following the successful acquisition of Dermolab late last year. The growing contribution of the CMO segment as more than offset the softer performance from the Eye-care segment which is evidencing the negative YoY comparison to the strong non-recurrent sales achieved in 2024 resulting from 2 product shortages in the US and Canada", mentioned Francois Roberge, President and CEO of LSL Pharma. "Our Eye-care operations continued to meet key development and strategic milestones with 1) the filing of supplemental information to the FDA to secure approval to manufacture Avaclyr and other products for the US market; 2) signing of 16 and filing of 6 new Eye-care products with Health Canada; 3) continued development of five "first-to-market" generic ointment products for the Canadian and US markets, and 4) continued progress with the installation and validation of the new production line", added M. Roberge.
"The signing of a new $7.5 million operating line of credit with Desjardins has provided in excess of $4 million of working capital flexibility to help fund our operations and growth initiatives. This financing, coupled with the new $10 million term loan from Desjardins and BDC will provide additional liquidity, help eliminate several debts and loans as well as reduce our debt servicing and cost of capital going forward" said Luc Mainville, Executive Vice-president and CFO of LSL Pharma.
Q2 & YTD 2025 FINANCIAL REVIEW
The Company's management's discussion and analysis and consolidated financial statements for the three and six months ended June 30, 2025, are available at the Company's website and at its profile on SEDAR+.
Financial Statements of net income (loss)
Change
Change
Q2-25
Q2-24
$
%
YTD-25
YTD-24
$
%
Revenues
CMO
6 463
2 441
4 022
165 %
12 211
3 879
8 332
215 %
Eye-Care
755
1 750
(995)
-57 %
1 632
4 475
(2 843)
-64 %
Total Revenues
7 218
4 191
3 027
72 %
13 843
8 354
5 489
66 %
Gross profit
2 061
1 536
525
34 %
4 167
2 682
1 485
55 %
Adjusted Gross Profit
2 696
1 882
814
43 %
5 238
3 362
1 876
56 %
SG&A
(1 721)
(1 276)
(445)
35 %
(3 380)
(2 243)
(1 137)
51 %
Operating Profit
340
260
80
31 %
787
439
348
79 %
Financial Expenses
(693)
(414)
(279)
67 %
(1 281)
(873)
(408)
47 %
Share-based comp.
(36)
(402)
366
-91 %
(50)
(402)
352
-88 %
Gain on acquisition
-
40
(40)
-100 %
-
40
(40)
-100 %
Net Loss
(389)
516)
127
-25 %
(544)
(796)
252
-32 %
EBITDA
