Regulated information
Nazareth (Belgium)/Rotterdam (the Netherlands), 11 October 2019 – 07:00 a.m. CEST
Strong turnover growth of 19.7% to €137.5 million
Organic turnover growth accelerates to 12.4%
Highlights
- Organic turnover growth of 12.4% (9.9% CER1)
- Strong turnover growth in North America and Latin America, clear growth acceleration in Europe
- Brands increased organically by 21.1% CER and represent 19.3% of the turnover
- Agreement to sell HL Technology
Rafael Padilla, CEO of Fagron: The strong turnover growth in the third quarter reflects the success of our strategy. We are very pleased that all our regions have contributed to this turnover development.
The European operations showed a clear acceleration of turnover growth. Compounding Services benefited from the fully up and running compounding facility in the Netherlands. Brands also demonstrated a strong performance due to, among other things, the successful introduction of innovative solutions developed in-house. Fagron Genomics was able to maintain its promising start and has sold 5,000 DNA tests in the first nine months of 2019.
In Latin America, Fagron benefited from its leading market position, partly as a result of recent acquisitions, and continued with the strong organic growth momentum. Fagron made a good appearance at the Consulfarma, the most important trade fair for the sector in Latin America. In the third quarter, the first steps were taken to integrate the recent acquisitions in Brazil and Mexico.
Fagron also continued to perform strongly across the board in North America. Based on the current turnover development of the sterile compounding facilities in Wichita, we are heading for a run-rate of US$50 million in turnover (annualised) by the end of 2019, which means we are on track to achieve our previously stated turnover target by 2022 at the latest. The activities of Humco, which was acquired last year, are fully integrated, giving Fagron an even stronger platform and product portfolio, which is a key driver for future growth.
Furthermore, recently an agreement was reached on the sale of HL Technology. The transaction, that is anticipated to be completed before the end of the year, is expected to result in a small book profit.
This performance, and the underlying developments on which it is based, allow us to be confident that we will also be able to achieve turnover growth in the fourth quarter.”
1 CER = Constant Exchange RatesPlease open the link below for the full press release:
Strong turnover growth of 19.7% to €137.5 million