Fagron realizes turnover growth of 10.7% CER

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Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 13 October 2020

Fagron realizes turnover growth of 10.7% CER

Fagron enters Israeli market with acquisition of Pharma Tamar

Highlights Q32020

  • Turnover growth1 of 10.7% CER2 to € 135.1 million
  • Organic turnover growth of 8.2% CER
  • Significant weakening of BRL and MXN against EUR results in reported turnover decline of 0.4%
  • Strong performance, particularly in Latin America; North America also reports good growth in turnover
  • Impact of COVID-19 pandemic remained limited and non-material
  • Acquisition of Pharma Tamar in Israel completed in August
  • CEO Rafael Padilla will directly lead EMEA region; focus on innovation and timetomarket
  • European organization being structured more efficiently

Rafael Padilla, CEO of Fagron: “As expected the third quarter was also to a large extent defined by the impact of the COVID-19 pandemic, which we were able to navigate well thanks to our product and regional diversification and our reliable supply chain. Both in terms of turnover development and profitability, Fagron once again showed a good performance in the third quarter.

The course and effects of the pandemic vary from region to region. Demand for COVID-19-related products, mainly at the Brands and Essentials segments, is keeping pace with the development in the infection rate, which is rising again in a number of regions. Demand for elective care recovered in a number of regions, although it is being scaled back again in areas where the number of cases is on the rise.

We are able to respond to both of these developments well with our diversified product portfolio, as is evidenced by the performance in Latin America and North America. In the Netherlands, where we traditionally have a strong position in Compounding Services, the impact of scaling back elective care is more difficult to offset by the increase in demand for COVID-19related products.

The European activities are being structured more efficiently to enable us to respond even quicker in the market. As part of this restructuring I am going to lead the EMEA region (Europe, South Africa and Israel) myself. The flatter organizational structure will lead to better collaboration in order to increase our strength and impact as a market leader and to realize synergies and economies of scale. Furthermore, we will focus more on innovation, the development of Brands and a shorter time-to-market.

Another important development remains consolidation and we are proud to have further strengthened our group in the third quarter of 2020 with the acquisition of Pharma Tamar in Israel. Fagron remains alert to possible acquisition opportunities that may arise in the current market dynamics.

The coming quarter will also be dominated by COVID-19 and visibility is limited. We will continue to pursue our policy aimed at making the most of opportunities while remaining critical of our costs.
1 Excluding HL Technology which was divested in the fourth quarter of 2019.
2 CER = Constant Exchange Rates.

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Fagron realizes turnover growth of 10.7% CER