Strong first quarter performance with 16% topline growth to €181 million

Financial results | 2 min read

Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 13 April 2023 – 7:00 AM CET

Strong first quarter performance with 16% topline growth to €181 million

Fagron, the leading global player in pharmaceutical compounding today publishes its quarterly results for the period ending 31 March 2023.

Key Highlights

  • Q1 2023 topline and organic growth across all regions
    • Revenue increased by 16.0% to €181.4 million (12.8% at CER) driven by organic growth, acquisitions, and FX
    • Organic revenue growth of 11.0% (8.0% at CER)
  • Solid performance in EMEA and North-America and cautious return to organic revenue growth in Latin America
    • Robust revenue growth trend in EMEA continues supported by pricing pass through as well as commercial and operational strengthening
    • Organic revenue growth in Latin America reflects initial signs of market stabilization and supported by improving operational efficiency
    • Revenue growth in North America driven by pleasing organic growth at FSS and continued good performance at Anazao. Combined run-rate of Wichita and Boston sterile outsourcing facilities was US$125 million
  • Continued rollout of disciplined acquisition strategy
    • Integration of Letco and 503B outsourcing facility in Boston in line with expectations
    • Acquisition of Wildlife Pharmaceuticals in South-Africa enables access to attractive veterinary market

Rafael Padilla, CEO of Fagron:
Our performance in the first quarter reflects our focused execution, and resilience in the business model despite the uncertain macro-economic environment. All our regions have shown organic growth mainly reaping the benefits of the strategic initiatives on the operational and commercial front. The performance in EMEA has continued its upward trajectory following pricing pass-through and operational excellence and commercial initiatives bearing fruit. In Latin America, we have seen initial signs of recovery in the market although the competitive environment remains heightened. In North America, syringe supply continued to ease which resulted in improved performance at FSS, while Anazao’s firm performance was supported by strong underlying demand for preventive healthcare.

The acquisition of Wildlife Pharmaceuticals in South-Africa allows us to expand our footprint in the attractive therapeutic area of veterinary compounding, further solidifying our local positioning. We remain committed to further consolidating the market and continuously assessing market opportunities across all our regions.

We remain confident about the prospects of our business globally and reiterate our FY 2023 and midterm guidance provided earlier this year.

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Strong first quarter performance with 16% topline growth to €181 million