Regulated information - inside information
Nazareth (Belgium)/Rotterdam (The Netherlands), 1 August 2024 - 7:00 AM CET
Fagron delivers strong performance with 16% topline growth and 17% increase in REBITDA for the first half of 2024
Fagron, the leading global player in pharmaceutical compounding today publishes its first half results for the period ending 30 June 2024.
Key Highlights
- Strong topline performance with 15.5% reported revenue growth (15.3% at Constant Exchange Rates (CER)) and 12.8% organic growth at CER
- Organic growth reflects strong performances across all regions
- 17.2% REBITDA increase translates to 30bps REBITDA margin uplift YoY to 19.7%, reflecting synergies from acquisitions and operational excellence benefits globally
- Operating cash flow decreased 3.1% to €41.9 million (up 34.7% when adjusted for factoring impact)
- Net earnings per share of €0.55, increased by 22.2% year-on-year
- One-off investments of $39 million and €15 million into the expansion of the Wichita and FSS Netherlands facilities respectively
- Upgrading FY 2024 revenue outlook to €850 - €870 million; Reiterating improvement in profitability year-on-year
Rafael Padilla, CEO of Fagron:
"Fagron has sustained its impressive performance throughout the first half of 2024, achieving 12.8% organic revenue growth at CER and a margin improvement year-on-year. This exceptional performance illustrates the robustness of our diversified business model, strong execution capabilities and focus on driving operational efficiencies.
In EMEA, we delivered strong organic revenue growth despite the challenges posed by the change in the reimbursement policy in Poland. Our strategic initiatives in the region, coupled with solid results from other markets highlight the benefits of our diversified business. Latin America demonstrated resilience in both revenue and profitability, reflecting our continued focus on commercial and operational excellence, although the competitive environment remains challenging. North America was the highest contributor to revenue growth, driven by strong underlying demand at Compounding Services (CS), while Brands & Essentials (B&E) saw healthy revenue growth, primarily due to operational excellence benefits.
Recognising the strong underlying demand for outsourced compounding and our goal of market leadership, we have strategically decided to invest in the expansion of the Wichita facility and our Fagron Sterile Services (FSS) facility in Netherlands. With regard to B&E in North America, we have cancelled the proposed investment at Decatur, as we now have a better alternative to drive the required growth there, through a combination of a facility upgrade and the use of our global network capacity. On the inorganic growth front, we remain committed to exploring market opportunities globally to further strengthen our position.
Looking ahead, for the full year we anticipate revenue in the range of €850 - €870 million and expect profitability to increase year-on-year. We remain committed to our mid-term objectives".
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