Fagron delivers strong performance with 13% topline growth and 14% increase in REBITDA for first half of 2023

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Nazareth (Belgium)/Rotterdam (The Netherlands), 3 August 2023 – 7AM CET

Fagron delivers strong performance with 13% topline growth and 14% increase in REBITDA for first half of 2023

Fagron, the leading global player in pharmaceutical compounding today publishes its first half results for the period ending 30 June 2023.

Key Highlights

• Strong topline performance with 13.1% reported revenue growth (12.1% at CER) and 8.4% organic revenue growth at CER
• Organic revenue performance reflects impressive growth in North America supported by continued solid performance in EMEA
• 14.0% REBITDA increase translates in 10bps REBITDA margin uplift to 19.4%, reflecting completion of pricing pass-through in EMEA and operational excellence benefits
• Operating cash flow increased by 12.1% to €43.3 million and leverage ratio of 1.9x
• Net earnings per share of €0.46
• FY ’23 outlook of high single digit organic sales growth and improvement in profitability and one-off capex in repackaging capacity in North America announced

Rafael Padilla, CEO of Fagron:

“In a market that remains very dynamic, Fagron has maintained momentum to post an excellent performance in the first half of the year, with organic revenue growth of 8.4% at CER year-on-year and margin improvement supported by successful strengthening of our operational and commercial pillars. Our performance reflects the strength of Fagron’s diversified business model allied to improved execution capabilities and supportive long-term fundamentals for the industry.

EMEA has shown continued organic revenue growth as we capitalized on strong demand across most of our markets. In Latin America, we have diligently focused on driving internal efficiencies resulting in a stronger performance towards the end of the second quarter, and though competitive pressures remain, we are seeing signs of improving customer demand. We remain confident about the prospects for the region going forward. North America demonstrated the strongest growth, driven by outstanding performance at FSS and Anazao, as demand for outsourcing services continues to grow and our customer base expands. 

While the business fundamentals of strong cash generation remain intact, it is essential to acknowledge the prudent one-off investment we are making this year at Anazao. Additionally, achieving market leadership in the B&E segment in North America remains a key strategic priority, and to that end, we are announcing an investment in a new cGMP repackaging facility.

While our first semester investments trended towards organic growth, we continue to look for attractive growth opportunities that support our strategic ambitions and meet our disciplined acquisition criteria.

For the full year, we expect high single digit organic revenue growth and profitability to improve YoY. Although macro-economic conditions remain uncertain, we are confident in delivering to our full year and mid-term objectives.”

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