Fagron realises turnover growth of 13.4%; REBITDA increases to € 117.0 million
Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 13 February 2020
Fagron realises turnover growth of 13.4%; REBITDA increases to € 117.0 million
Operational cash flow increases to € 98.8 million
Financial highlights of 20191
- Turnover increased to € 534.7 million (+13.4%); organic turnover growth of 8.3%
- REBITDA2 increased to € 117.0 million (+9.9%); EBITDA +13.2%
- Net profit3 up 30.3% at € 55.7 million
- Strong operating cash flow4 of € 98.8 million
- Net financial debt /REBITDA ratio of 2.33 at the end of 2019
- Dividend proposal of € 0.15 per share
Strategic and operational highlights
- Integration of acquisitions in Mexico, Brazil and Czech Republic started
- Successful start for Fagron Genomics
- Strong improvement in operational working capital to 8.1% of turnover (2018: 10.2%)
- Sale of HL Technology completed
Rafael Padilla, CEO of Fagron: “Fagron achieved very good results in 2019, with strong growth in both turnover and REBITDA. Turnover increased by 13.4% to € 534.7 million, supported by a healthy organic growth and the contribution from a number of strategic acquisitions in 2019. REBITDA also showed a good development, increasing by 9.9% to € 117.0 million, while we continued to invest in the further development of our organization and activities.
In 2019 we took further important steps to strengthen our foundation. The acquisitions in our various geographical markets have strengthened both our product proposition and our positioning as the global market leader in niche markets. The establishment of Fagron Genomics and the successful launch of various genetic tests has added a promising branch to our activities.
In North America we successfully completed the integration of Humco. The resulting commercial synergies further reinforce Fagron’s competitive position and contributed to the very strong performance of Brands and Essentials. The sterile compounding facilities in Wichita are on track to achieve the stated turnover target by 2022 at the latest. Due to a change in the services provided to certain large customers turnover growth in the fourth quarter was slightly lower, but with a higher profitability.
In Europe the sterile GMP-compounding facility in the Netherlands, which has been fully operational again since July, saw turnover growth level off somewhat in the fourth quarter due to the complex process to get commitment of new hospitals. Genomics showed a promising development with growth accelerating in the course of the year. Furthermore, we made a start on integrating Dr. Kulich Pharma, the company we acquired in the Czech Republic.
Over the past year we significantly strengthened our position in Latin America with several acquisitions. Following the acquisition of Cedrosa we now have access to the rapidly growing Mexican market, while the acquisition of Levviale, Apace and Ortofarma strengthened our leading position in Brazil. We started integrating these companies in the second half of the year. The Latin American activities also continued their strong organic performance.
With the successes we achieved in 2019 we have further strengthened our foundation and we look forward to reaping the continued benefits of this in 2020.”
1 The 2019 figures are compared to the 2018 figures, adjusted for the impact of IFRS 16.
2 EBITDA before the non-recurring result.
3 Net profit from continuing operations.
4 Operational cash flow corrected for discontinued operations.
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