July -
· Net sales amounted to
· EBITA increased by 51% and amounted to
· Operating profit (EBIT) amounted to
· Profit after tax amounted to
· Earnings per share amounted to
· Leverage[ ]decreased from 5.6 end of June to 5.1 at the end of the quarter
· No material financial support received for COVID-19
January -
·
· Net sales amounted to
· EBITA increased by 66% and amounted to
· Operating profit (EBIT) amounted to
· Profit after tax amounted to
· Non-recurring items affected profit after tax with SEK - 160 million (0)
· Earnings per share amounted to
· Share issues of
Strategy implementation continues to drive strong results
"Our strong results in the third quarter illustrate that we are delivering on the implementation of our strategy. Despite currency headwinds impacting revenue growth by 4 per cent and EBITA by 5 per cent, we have delivered another strong quarter with EBITA growth of 51 per cent, significantly ahead of the 44 per cent sales growth. With a strong comparison quarter, we still managed to achieve flat organic sales in continuing operations. EBIT increased significantly and excluding non-recurring income but including currency impact, the increase was 63 per cent.
We see strong demand for COVID-19 related products and services and discussions are ongoing with several pharma companies. A first clinical study on Erdosteine as an add-on treatment for COVID-19 has shown positive outcome and we are evaluating how to develop knowledge in this field. During the quarter we started to prepare and allocate sterile manufacturing capacity in order to be able to attract COVID-19 related products. I'm therefore pleased to note that we after the period reached an agreement with US based company
Operating costs in locations highly affected by the pandemic have been higher, mainly affecting our Sterile Liquids segment. We have also seen some impact on end-market demand of non- COVID-19 related products in all segments. We believe this is a temporary effect. During the quarter, our operations in
Advanced Delivery Systems' sales were impacted by temporary starting materials shortage and certain phasing to the fourth quarter. One of our customers has withdrawn a new product, therefore we expect somewhat softer ADS performance during next quarters Overall demand for inhalation products continues to be good with several new products in development and further projects under negotiation.
I'm very pleased with the execution of our road map to deliver cost and revenue synergies from our acquisition of Consort Medical. During the quarter we benefitted from
Operationally the Consort entities are well integrated into
Good cash flow and high profit contributed to lower net debt and leverage during the quarter. Leverage is expected to continue to decrease going forward. Our liquidity position has further improved during the quarter and we retain good operating flexibility.
Our efforts during past years to build a resilient top 5 CDMO with global reach will continue to bring benefits to customers and patients. Overall demand continues to be largely unaffected during the ongoing pandemic and we are securing more valuable new contracts than ever before. We will deliver on our strategy and explore the value creating opportunities we see in the market. Looking forward we see continued good organic growth and we expect to well reach our EBITA-margin and return on operating capital long term targets already during next year."
The complete report is attached through the link at the end of the press release.
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Address Box 603, SE-101 32 Stockholm, Sweden, Telephone +46 8 602 52 00
www.recipharm.com
https://news.cision.com/recipharm-ab/r/recipharm-ab-publishes-its-interim-report-for-the-third-quarter-2020,c3231602
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