FAGRON N.V. Fagron 2019 Full-Year Results
Rafael Padilla, CEO
Karin de Jong, CFO
Rotterdam, 13 February 2020
Together we create the future of personalized medicine
Fagron Team
Rafael Padilla | Karin de Jong | Constantijn van Rietschoten |
Chief Executive Officer | Chief Financial Officer | Chief Communications Officer |
Started in 2002 | Started in 2008 | Started in 2008 |
7 February 2019 - What would happen in 2019?
Summary & Outlook 2019
✓ New Brand Identity & Purpose
✓ Turnover growth driven by all areas ✓ Growth acceleration in H2-2018
✓ Focus remains on:
✓ strong organic growth, and
✓ targeted acquisitions
✓ Strategic focus on innovation and quality improves competitive advantage
✓ Dividend proposal of € 0.12 p/s
✓ Further growth of turnover and profitability expected in 2019
2019 Highlights - Financial
Turnover | € 534.7m | +13.4% |
REBITDA | € 117.0m | +9.9% |
EBITDA | € 113.7m | +13.2% |
Net profit* | € 55.7m | +30.3% |
Operational cash flow | € 98.8m | +34.8% |
Dividend proposal | € 0.15 | +25.0% |
* Net profit from continued operations
2019 Operational Highlights - Launch New Brand Identity and Purpose
Together we create the future of personalized medicine⚫
2019 Operational Highlights - Successful Start of Fagron Genomics
Successful start of Fagron Genomics
- Launch of several DNA-tests
- TrichoTest®
- TeloTest®
- NutriGen®
- 8,200 DNA-tests sold
2019 Operational Highlights - Construction Repackaging Facility in Poland
Construction Repackaging Facility in Poland
- 5,000 m2 facility; operational in H2-2020
- Investment of € 8m
- € 2m structuralmargin improvement as of 2021
2019 Operational Highlights - Disciplined Acquisition Strategy
Dr. Kulich Pharma
#2 in B&E
Cedrosa
First step in
Mexico
Levviale
B&E - focus on excipients
Apace
Packaging materials for compounding
Ortofarma
Analytical R&D-lab
2019 Operational Highlights - New Sustainable Credit Facility
New sustainable credit facility of € 375m
- Improved terms and flexibility
- Sustainability Linked Loan
- Fagron aims to reduce greenhouse emissions in six years by approximately 30%
- Linked to the variable remuneration of management as from 2020
2019 Operational Highlights - Legacy Issues
Legacy Issues - Finalized
- Settlement with US DoJ
- Settlement with former owner Anazao
- Divestment of HL Technology
2020 - Acquisition of Gako (Germany)
Acquisition of Gako
- Leading developer, manufacturer and supplier of mixing equipment for compounding dermatological formulations
- 2019 turnover of € 4.5m
- 2019 EBITDA-margin of ~15%
2020 - Partnership with Azelis in Australia
Partnership with Azelis
- Appointment of Azelis as exclusive distributor in Australia and New Zealand
2019
Results
per
Segment
Turnover Development
Excluding HL Technology
550
25.6528.5
500 | 18.7 | 4.0 | ||
450 | 464.5 | 5.2 | 10.5 | |
400
350
300
250
Fagron Europe
(x € 1,000) | 2019 | 2018 | ∆ |
Turnover | 257,001 | 250,086 | +2.8% |
REBITDA | 67,133 | 66,708 | +0.6% |
REBITDA margin | 26.1% | 26.7% | |
- Organic turnover growth of 1.9% (+2.1% CER*)
- Growth rate at Dutch GMP-compounding facility flattens in Q4-19
- Strong start of Fagron Genomics (8,200 tests sold)
- Integration of Dr. Kulich in Czech Republic started
- REBITDA margin decreases by 60bps to 26.1%
* Deviation of 2.7% guidance
Fagron Latin America
(x € 1,000) | 2019 | 2018 | ∆ |
Turnover | 125,552 | 100,930 | +24.4% |
REBITDA | 25,351 | 21,032 | +20.5% |
REBITDA margin | 20.2% | 20.8% | |
- Organic turnover growth of 7.7% (+10.4% CER)
- Decrease (in %) of Brands fully caused by acquisitions in 2019
- First Academies held in Mexico
- Strong growth of 19.0% CER in Colombia
- Integration of Cedrosa, Levviale, Apace and Ortofarma started
- REBITDA margin decreases by 60bps to 20.2% due to lower contribution from acquisitions
Fagron North America
(x € 1,000) | 2019 | 2018 | ∆ |
Turnover | 145,910 | 113,488 | +28.6% |
REBITDA | 23,534 | 17,754 | +32.6% |
REBITDA margin | 16.1% | 15.6% | |
- Organic turnover growth of 22.7% (+16.5% CER)
- FSS: +35.8% (+28.7% CER)
- Change in services to large customers limits growth but increases profitability
- On-trackto reach target by 2022 at the latest
- Anazao: +12.9% (+7.0% CER)
- Further focus in product offer (stopped with hot nuclear)
- Brands & Essentials: +40.6% (+33.2% CER)
- Intensive collaboration between Humco and Fagron
- REBITDA margin increases by 50bps y-o-y
- Margin increases from 14.0% in H1 to 18.1% in H2
2019
Financials
Financial Review - Turnover
(x € 1,000) | 2019 | 2018 | ∆ |
Fagron | 528,462 | 464,504 | +13.8% |
HL Technology | 6,233 | 7,174 | -13.1% |
Total | 534,695 | 471,679 | +13.4% |
- Organic turnover growth of 8.3% (+7.5% CER)
- HL Technology divested in Q4-2019 - deconsolidated as from 1 October 2019
Financial Review
Gross Margin | Operating costs | REBITDA | ||
+10.8% to € 322.0m | +11.2% to € 205.0m | +9.9% to € 117.0m | ||
FY-19: 60.2% (-140bps) | due to acquisitions in 2018 | H2: +13.4% to € 61.4m | ||
(Humco) and 2019 | ||||
Financial Review
Non-recurrent result | EBITDA | DA |
-€ 3.3m | +13.2% to € 113.7m | +11.1% to € 29.3m |
Consists of settlement with former | H2: +12.7% to € 59.5m | |
owner Anazao, dismissal costs |
and acquisition costs
Financial Review
Financial result | Taxes | Net profit |
Improved by 26.5% to -€ 14.5m | Effective tax rate of 20.3% | +30.3% to € 55.7m |
Effective cash tax rate of 22.5% | Recurrent net profit |
+18.6% to € 58.1m
2020 Expectations
- Further growth in turnover and profitability
- Turnover growth driven by:
- organic growth
- disciplined acquisition strategy
- Global roll-out of Fagron Genomics
- Strong R&D-pipeline will further drive growth of Brands
- Enter into partnerships in new geographical markets
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Disclaimer
Fagron NV published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 09:30:07 UTC
