REBITDA decreased by 10.0% to € 106.5 million
Exclusive negotiations with cornerstone investor concerning Fagron’s financing
Regulated information | Consolidated results for the 2015 financial year
Waregem (Belgium)/Rotterdam (The Netherlands)[1], 5 February 2016
Highlights:
- Turnover increased 5.8% to € 473.0 million in line with outlook; organic decline in turnover of 1.0%
- REBITDA[2] decreased by 10.0% to € 106.5 million; REBITDA margin of 22.5%
- Impairment of € 225.6 million on American Bellevue Pharmacy and Freedom Pharmaceuticals due to lower profitability resulting from changes in the reimbursement system
- Negative net result due to non-recurring costs, depreciation and amortisation
- Exclusive negotiations with a cornerstone investor and other investors concerning a private capital injection in combination with a public share issue are at an advanced stage; total capital increase of € 220 million
- Proposal not to pay out a dividend over 2015
Hans Stols, CEO Fagron: “2015 was a difficult year for Fagron. Although our turnover increased across the entire line and a number of our operations performed well, we also had some disappointments this year. Not only did the further weakening of the Brazilian real negatively impact turnover and EBITDA in 2015, especially the change in the reimbursement system for non-sterile compounding in the United States had a negative impact. This change reduced the profitability of our American operation, which also resulted in an impairment and a net loss. To turn this situation around, we have initiated a cost reduction programme with the objective of structurally reducing the costs by € 10 million per annum over time. We will have to direct our operations with a clear focus over the coming period to ensure we remain successful under these changed market conditions.
The lower EBITDA for this year also affected the company’s financing. Following constructive discussions with our financing banks, we received a waiver at the end of December 2015, concerning the covenants on the revolving credit facility and the US private placement. This waiver gives Fagron time until the end of March to work on a solution. At the present time we are at an advanced stage in developing a solution and we are conducting exclusive negotiations with a cornerstone investor and other investors concerning a capital injection to achieve a sustainable solution to Fagron’s financing. The Board of Directors will propose to not pay dividend over 2015 to enable the company to give priority to reducing the financial debt and to further strengthen Fagron’s balance sheet. We realise that this has taken a long time, but we are now close to a solution. We are confident about the operational state of affairs and the dedicated efforts of our 2,184 employees throughout the world, giving us a strong foundation for the future.”
[1] This press release was sent out by Fagron NV and Fagron BV.
[2] EBITDA before non-recurring result.
Additional information
Constantijn van Rietschoten
Chief Marketing Officer / Investor Relations ad interim
Tel. +31 6 53 69 15 85
constantijn.van.rietschoten@fagron.com
investors.fagron.com
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