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Nazareth (Belgium)/Rotterdam (The Netherlands), 15 February 2024 - 7AM CET
Fagron delivers strong performance with 12% topline growth and 14% increase in REBITDA for FY 2023
Fagron, the leading global player in pharmaceutical compounding today publishes its full year results for the period ending 31 December 2023.
Key Highlights
- Strong topline performance with 11.6% reported revenue growth (12.5% at CER) and 10.5% organic revenue growth at CER supported by growth across all regions
- 13.9% REBITDA increase translates to 40bps REBITDA margin uplift YoY to 19.5%, reflecting synergies from North America acquisitions and operational excellence benefits
- Operating cash flow increases by 13.9% to €124.6 million resulting in improved leverage ratio of 1.4x
- Acquisition of London Specialist Pharmacy in the United Kingdom
- Dividend proposal of €0.30 per share (+20%)
- Good progress on greenhouse gas intensity reduction target
- FY '24 outlook of high single-digit organic sales growth and continued improvement in profitability
Rafael Padilla, CEO of Fagron:
"I am very pleased to present another set of strong results, exemplifying the resilience of Fagron's diversified business model. In line with our guidance, we have delivered outstanding organic revenue growth of 10.5% at CER YoY and an improved margin, as we progressed on successfully integrating our acquisitions in North America whilst also driving operational excellence globally.
Growth in the EMEA region normalized towards the end of this year as expected, reflecting a solid performance across most of our markets and the impact of the anticipation on the local reimbursement reform in Poland. In Latin America we continued to focus on our commercial and operational efforts, as customer demand keeps improving while the competitive pressures remain. North America continues its excellent performance, driven by growth at FSS and Anazao, as existing and new customers increase their outsourcing of compounding, and strong underlying trends in the prevention and lifestyle segment as well as drug shortages persist. As anticipated, the ongoing integration of our Letco and Boston acquisitions and increased operational efficiency boosted profitability in the region.
The acquisition of London Specialist Pharmacy allows us to enter the compounding market in the United Kingdom, further diversifying our EMEA footprint, whilst adhering to our disciplined acquisition strategy.
For full year 2024, we expect high single-digit organic revenue growth and our profitability to improve YoY. We remain confident in achieving our mid-term objectives and continue to look for attractive growth opportunities that support our strategic ambitions."
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