When Will Hyloris Pharmaceuticals SA (EBR:HYL) Become Profitable?

Hyloris Pharmaceuticals SA (EBR:HYL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hyloris Pharmaceuticals SA engages in the research, development, and manufacture of pharmaceutical products to address medical needs. The company’s loss has recently broadened since it announced a €6.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of €6.4m, moving it further away from breakeven. Many investors are wondering about the rate at which Hyloris Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Consensus from 2 of the Belgian Pharmaceuticals analysts is that Hyloris Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of €14m in 2027. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 80% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Hyloris Pharmaceuticals' upcoming projects, but, keep in mind that by and large pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Check out our latest analysis for Hyloris Pharmaceuticals

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Hyloris Pharmaceuticals, so if you are interested in understanding the company at a deeper level, take a look at Hyloris Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Historical Track Record: What has Hyloris Pharmaceuticals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hyloris Pharmaceuticals' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.