Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 14 April 2020 – 7am CET
Fagron realizes turnover growth of 16.4%
Limited impact from COVID-19 pandemic
Highlights
- Turnover increased by 16.4%1 (+19.2% at constant exchange rates) to € 141.6 million
- Organic turnover growth of 9.2% at constant exchange rates
- Strong performance in all regions, in particular North and Latin America
- Impact of COVID-19 as yet limited and non-material
- Fagron is fully operational in all markets where it is active
- Virtually no disruption to supply chain
- Temporary shift in demand for products
- Global uncertainty regarding impact of COVID-19 in 2020 requires cost control and disciplined capital allocation
- 2019 dividend proposal lowered to € 0.08 per share
Rafael Padilla, CEO of Fagron: “Fagron showed an excellent performance across the board in the first quarter of 2020. Europe showed a good development of organic turnover growth, while North America and Latin America were able to continue their strong performance.
Whilst the impact of COVID-19 on our results is limited on balance, the outbreak has led to a new reality since the beginning of 2020, in terms of both the organization of our operations and the demand for and availability of our products.
The safety and well-being of our employees is our absolute top priority. At the same time our ability to supply our products at this time of growing scarcity of specific raw materials and medicines and pressure on the healthcare sector is more crucial than ever. At all our facilities we have introduced strict measures to provide optimum protection to our staff and at the same time guarantee the continuity of our activities.
At present it remains difficult to predict the final impact of COVID-19 on Fagron’s performance, given that many of the markets in which we are active are still in the midst of the virus outbreak and the measures to control it. On the one hand we are seeing exceptionally high demand for specific products, in particular at Brands and Essentials. Compounding Services plays an important role in providing solutions for bottlenecks, for example by preparing products that are scarce and by taking pressure off overstretched nurses and hospitals. This proves once more the added value of Compounding Services in these exceptional circumstances. On the other hand, Compounding Services is impacted by elective care being delayed or scaled back. On balance, we are convinced that the strategic position and the importance of compounding, both in the (hospital) pharmacy and by Fagron, will gain importance.
We have every confidence that our global team and network will enable us to respond effectively to the changed circumstances, allowing us to further strengthen our ties as a trusted partner for our customers, both now and in the future. COVID-19 is causing a great deal of uncertainty and at present it is still too soon to predict to what extent this will affect our activities. To ensure that Fagron’s long-term potential is not compromised we are taking some precautionary measures, including a greater focus on cost control, disciplined capital allocation and strict cash flow management, so that we can continue to invest in our further development. As part of these measures the 2019 dividend proposal has been lowered to € 0.08 per share.
The current conditions are placing extremely high demands on our employees, who as frontline staff are making maximum efforts to optimize supplies to hospitals and pharmacies. It makes me very proud that thanks to all our committed and motivated employees we as an organization are contributing to a healthier future, also in these challenging times.”
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Fagron realizes turnover growth of 16.4%