Fagron delivers topline growth of 21.5% to €173 million
Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 13 October 2022 – 7.00 AM CET
Fagron delivers topline growth of 21.5% to €173 million
Fagron, the leading global player in pharmaceutical compounding today publishes its quarterly results for the period ending 30 September 2022.
Key Highlights
- Q3 2022 topline growth across all regions
- Revenue increased by 21.5% to €173 million (10.7% at CER) driven by organic growth, acquisitions, and FX
- Organic revenue growth of 11.5% for Q3 2022 and 13.5% for 9M 2022 (1.7% and 5.1%, respectively at CER)
- Robust performance in EMEA and proactive strategic actions in Latin America and North America
- Continued positive revenue development in EMEA following structured implementation of our strategy
- Maintaining market leadership in Latin America by streamlining operational approach to counter evolving market dynamics
- Strong underlying demand in North America affected by global supply chain shortages
- Inventory management and cost efficiency key focus areas of centralized procurement team to maximize product availability and optimize pricing
- Continued rollout of disciplined acquisition strategy
- Integration of Curaphar, Hiperscan, Pharma-pack, and 503B outsourcing facility in Boston facility advances as planned
- Accelerated integration of Letco
- Appraising opportunities across all our markets
- Further progress on environmental and social initiatives
- Committed to set science-based emission reduction targets as part of sustainability strategy
Rafael Padilla, CEO of Fagron comments
“Our results in the third quarter demonstrate the resilience in our business with positive developments in several markets despite an increasingly challenging macro environment. The performance in EMEA has continued its upwards trajectory following a series of actions aimed at enhancing our competitive edge as well as driving efficiencies. In Latin America, increased competitive pressure and end market softness endure and we remain focused on maintaining market leadership by further optimizing operations and driving commercial efficacy to protect profitability. Finally, in North America, we have further reinforced our focus on quality but have seen impact from various external factors such as a continuation of the syringe shortages and shipment disruptions due to Hurricane Ian.
Given the syringe shortages are likely to linger, we expect our Wichita run rate to remain at current levels through the fourth quarter, despite strong underlying demand, and achieve at least US$95m (annualized) at the end of the period. Combining this with the recently acquired 503B outsourcing facility in Boston, where we have made strong progress by utilizing our commercial expertise at Wichita and have onboarded several new clients, we expect the joint run rate by the end of the year to be above US$110m (annualized).
We remain confident about the prospects of our business globally and reiterate our FY 2022 and mid-term guidance provided earlier in the year".
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