Regulated information | Consolidated results for the first semester of 2018
Nazareth (Belgium)/Rotterdam (the Netherlands), 3 August 2018
Fagron realised organic turnover growth of 8.5%
Organic turnover growth in all regions
Growth acceleration in North and South America in Q2
Key points – Financial
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REBITDA[1] increased by 1.1% (+6.9% at constant exchange rates) to € 48.7 million
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Recurrent net profit increased by 6.6% to € 22.3 million
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Operational cash flow of € 34.4 million
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Net financial debt/REBITDA ratio of 2.72
Strategic – operational
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Expansion of organization to further accelerate growth
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Launch of greenfield operations in Canada in Q2
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25 innovations introduced at Consulfarma in Brazil
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Sterile compounding facility in Wichita (USA) has licenses in 49 states
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Co–optation of Judy Martins as non-executive director of Fagron
Rafael Padilla, CEO of Fagron: “Fagron performed strong in the first semester of 2018. Organic turnover growth at constant exchange rates increased with 8.5% compared to the same period last year. In the second quarter of 2018, we see a clear growth acceleration. Organic turnover at constant exchange rates increased by 10.0% in the second quarter, driven mainly by our operations in North America and South America. The profitability of our activities in Europe and South America remained strong. In North America, we significantly invested in the first semester and recruited 43 new employees to accelerate the product range in the 503B facility in Wichita, to take full advantage of the growth opportunities in the sterile compounding market in the United States.
The sterile activities in the United States performed excellent in the first semester of 2018. Turnover against constant exchange rates increased by 27.5%. The strong growth of the 503B facilities in Wichita is driven by an increase in the number of clients, the accelerated growth of the product range, as well as the increased monitoring of 503B-facilities on compliance with requirements by the regulatory authorities. We are pleased that the new 503B facility in Wichita in 2018 received licenses from the states of California and Indiana, bringing the number of licenses to 49 now.
The sale of Essentials and Brands for compounding in the US increased by 7.6% in the first semester of 2018 compared to the same period last year. All activities contributed to the increase in turnover. In the second quarter of 2018, we made good progress with the integration of the American Humco, which was acquired by Fagron in early April 2018. With the integration of Humco, we created a strong platform in order to further strengthen our market position in the USA. In the third quarter, the first innovative pharmaceutical branded products and vehicles from Humco will be introduced in Europe and South America.
The organic turnover growth at constant exchange rates in South America amounted to 13.3% and was mainly driven by the strong growth of the underlying markets and the focus on the development and introduction of innovative products and patented concepts. This focus has resulted in strong growth of Brands in the first semester of 2018.
The strategic focus initiated at the end of 2017 on the development and introduction of distinctive innovative products is clearly successful in Europe. The percentage of Brands increased from 8.2% to 10.6%. In Europe, we have invested in further increasing the quality of our facilities and processes, a core value on which Fagron distinguishes itself from its competitors.
We look forward with confidence to the remainder of the year and expect that we can continue the positive trend of the first semester in the second semester of 2018.”
Please open the link below for the press release:
Fagron realised organic turnover growth of 8.5%
Please open the link below for the interim financial statements: