Hans Stols, CEO of Fagron: "Fagron can look back on a strong first half of 2017. Our core businesses in Europe, South America and North America achieved good growth in both turnover and profit. The sterile compounding operations in the United States achieved turnover growth of more than 22%, a clear acceleration compared to previous half-years. The costs of the company were well controlled resulting in a profitability that increased faster than turnover.
We also made important operational progress in the past six months. We launched many innovative products and concepts on the market to meet the growing demand for individualised patient care. In South America and in Europe, this included the introduction of TrichoConcept® (a patented total solution for alopecia), Pigmerise® MD (a treatment for vitiligo) and FagronLab® (advanced equipment for pharmaceutical compounding), while in the United States we brought our Lets Gel Kit® (an anaesthetic gel) to the market. We are also pleased with the opening of a new compounding facility in Hoogeveen (the Netherlands) during the first half of 2017. This new facility is an important element of the strategy of strengthening our position in hospitals. In addition, we completed the acquisition of Kemig, a leading supplier of pharmaceutical raw materials and packaging materials to pharmacies and wholesalers in Croatia and Bosnia and Herzegovina, early August 2017.
After refinancing the company last year, we focused on further decreasing our leverage in the first half, as a result of which we are operating comfortably within the covenants for our loans, and have created a solid financial position. We subsequently repaid our bond loan of € 225 million just after the close of the first half-year."
Turnover increases 5.5% to €221.7 million
REBITDA1 increases 5.6% to €48.1 million or 21.7% of turnover
EBIT increases 13.5% to €38.4 million or 17.3% of turnover
Net profit increases 27.0% to €21.1 million
Strong operating cash flow of €49.5 million
Net financial debt/REBITDA ratio decreases from 3.18 to 2.66
Strategic - operational
Sterile compounding facility in Wichita (US) licensed in 46 states (incl. New York, Florida and Texas)
Opening of new sterile compounding facility in Hoogeveen (the Netherlands)
Sale of non-sterile compounding facility in Paris (France)
Acquisition of Kemig, market leader in the sale of pharmaceutical raw materials in Croatia, after the close of H1 2017
To view the full press release please click the link below.