Regulated information
Waregem (Belgium)/Rotterdam (the Netherlands)[1], 9 October 2015
Fagron realizes turnover growth of 3.5% for 3rd quarter of 2015
Update on indications of interest
Fagron’s consolidated turnover increased by 2.4% (3.5% at constant exchange rates) to € 113.5 million during the third quarter of 2015. In organic terms, the turnover decreased by 3.8% (-2.7% at constant exchange rates).
Turnover (x € 1,000) Q3 2015 Q3 2014 Total growth Total growth CER Org. growth Org. growth CER Fagron 111,720 109,055 2.4% 3.8% -3.8% -2.5% HL Technology 1,818 1,845 -1.5% -12.1% -1.5% -12.1% Total 113,538 110,900 2.4% 3.5% -3.8% -2.7%
CER = constant exchange rates
Ger van Jeveren, CEO of Fagron: “This was a challenging quarter for Fagron. In Europe, our biggest market, good organic growth was achieved in all segments in which we are active. We also saw strong organic growth in Brazil, but the further weakening of the Brazilian real had a negative impact on the turnover in euros. We also experienced a setback in the United States because of the change in the reimbursement system for non-sterile preparations, which came into effect in May of this year. The effect of this change on the turnover of the third quarter was approximately € 17 million. The sterile FSPS activities in the United States have shown strong organic growth, mainly driven by growing demand from hospitals to outsource sterile preparations.
The change in the reimbursement system and continuing effects of this and the weakening of the Brazilian real have resulted in an adjustment of the outlook for 2015. As already announced last week, we expect to achieve turnover of between € 470 and € 480 million[2] in 2015 with REBITDA[3] of between € 105 and € 115 million[4]. The consequences of the revised REBITDA expectation for the full year of 2015 for the financing of Fagron are being addressed.”
[1] This press release was sent out by Fagron NV and Fagron BV.
[2] Based on constant exchange rates (euro/US dollar 1.114 and euro/Brazilian real 3.524).
[3] EBITDA before non-recurrent result.
[4] Based on constant exchange rates (euro/US dollar 1.114 and euro/Brazilian real 3.524).
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