Regulated information
Nazareth (
Accelerated growth at Fagron Sterile Services in Wichita – turnover target raised on acquisition of US Compounding activities
Financial highlights of H1 2021
- Turnover decreased 0.8% to € 276.6 million (+5.9% at constant exchange rates)
- Gross margin decreased 140 bps to 58.4% due to temporary COVID-related impact
- REBITDA1 decreased 11.0% to € 56.0 million
- REBITDA margin decreased to 20.2% (H1 2020: 22.6%)
- EBIT decreased 11.9% to € 40.7 million
- Operating cash flow increased 15.1% to € 31.3 million
- Net financial debt /REBITDA ratio of 2.18 at
30 June 2021 - Outlook for 2021: Further turnover growth with a REBITDA between € 118 and € 124 million
Strategic and operational highlights
- Wichita compounding facility on track, thanks in part to product launches and new contracts
- Ramping up to two shifts in anticipation of growth acceleration
- Acquisition of compounding activities of US Compounding (turnover approximately US$ 6.5 million); turnover target raised to US$ 125 million (run rate) in 2022
- Transition to new repackaging facility in
Poland started inApril 2021 , completion expected by end-2021 - New GMP sterile compounding facility (Compounding Services) operational in
Tel Aviv inJune 2021 - Higher strategic inventories to safeguard product availability
Organization - Management
- More compact Executive Leadership team to further strengthen effectiveness
Constantijn van Rietschoten appointed Area Leader EMEAJohan Verlinden appointed Head of Legal & M&A
Another effect we saw occurring in the first half of the year was the rapid rise in the price of certain raw materials and packaging materials, partly as a result of COVID-19 and the global vaccination programs. Transport costs have also risen substantially. Under current contracts these cost increases cannot always be passed on in full or only with a delay, resulting in a temporary negative impact on our gross margin and therefore on REBITDA.
Towards the end of the second quarter the results in EMEA were clearly showing the effect of the recovery in elective care. The number of prescriptions (first dispensations) in
In
In
The ongoing global vaccination programs will allow increasing normalization of our markets. How fast this happens will differ strongly from region to region and will partly depend on potential new outbreaks. This means that visibility is still limited by the pandemic. Fagron’s focus areas have become even more relevant as a result of COVID-19 and we are excellently positioned to benefit once the healthcare sector returns to normal. In this context we are also actively looking at acquisition opportunities, in EMEA and
Based on these developments our outlook for the 2021 full year is for further turnover growth with a REBITDA between € 118 and € 124 million.”
1 EBITDA before the non-recurring result
Please open the link below for the full press release:
Please open the link below for the interim financial statements:
Interim Financial Statements H1 2021
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