Fagron Sa · EURONEXT:FAGR
Fagron Sa — Fagron Sa Ord — H1 2024 Earnings Presentation
21 slides from Fagron Sa's earnings presentation, Aug 1, 2024
Slide 1: H1 2024 Results
H1 2024 Results Rafael Padilla CEO | Karin de Jong CFO 1 August 2024
Slide 2: Disclaimer
Disclaimer The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Fagron. Certain statements in this presentation may be deemed to be forward-looking. Such forward-looking statements are
Slide 3: Key highlights
• Key Highlights Key highlights Rafael Padilla CEO
Slide 4: Exceptional H1 2024 performance supported by all regions
Exceptional H1 2024 performance supported by all regions H1 2024 YoY change Organic revenue growth at CER supported by all Total revenue €429.3m +15.5% regions, particularly led by the exceptional performance in CS Revenue organic growth CER +12.8% +440bps 17.2% increase in REBITDA translating to a
Slide 5: EMEA: Strengthened execution capabilities supplemented by strong demand and M&A
EMEA: Strengthened execution capabilities supplemented by strong demand and M&A B&E performance shows solid demand in most +3.3% European countries highlighting the benefits of our diversified footprint Organic revenue growth at CER Poland’s performance resilient following implementation of strategi
Slide 6: Poland: Commercial agility provides competitive advantage
Poland: Commercial agility provides competitive advantage Background: Regulatory reform Fagron: Clear strategic actions Law adopted containing changes to reimbursement Provide expert input to government working group 1 system for overall pharmaceutical market 2 Proactive and regular engagement with
Slide 7: Latin America: Operational excellence driving strong performance
Latin America: Operational excellence driving strong performance Sustained market leadership in Brazilian market while +5.7% competitive pressures sustain Organic revenue growth at CER Innovative product launches and broad product portfolio drives strong Brands performance 17.3% Colombia retains mom
Slide 8: North America: Capturing strong demand within a highly regulated environment
North America: Capturing strong demand within a highly regulated environment Sequential improvement at B&E reflecting +26.2% consolidation of Letco and improved operational performance Organic revenue growth at CER FSS’ exceptional performance continued with strong underlying demand; Boston able to
Slide 9: Quality focus critical in navigating evolving regulatory requirements
Quality focus critical in navigating evolving regulatory requirements YTD 2024 Global quality KPIs 1 EMEA - Poland Number of facilities to audit globally Audits globally Number of inspectional observations: 2 cGMP certificate renewed 35 7 2 North America - CS (Wichita) FDA inspection carried out end
Slide 10: Financial review
• Key Highlights Financial review Karin de Jong CFO
Slide 11: H1 2024 financial highlights
H1 2024 financial highlights 550.0 +15.5% 0.3 +17.2% 23.0% 0.25 95.0 450.0 429.3 84.6 22.0% 0.2 371.6 72.2 21.0% 70.0 20.0% 350.0 0.15 19.0% 19.4% 19.7% ` 0.1 45.0 ` 18.0% 250.0 17.0% 0.05 16.0% 150.0 0 20.0 15.0% H1 2023 H1 2024 H1 2023 H1 2024 Revenue in €m REBITDA in €m REBITDA margin Revenue gro
Slide 12: H1 2024 Revenue bridge and P&L statement
H1 2024 Revenue bridge and P&L statement 450.0 in €m Profit & loss account (€m) H1 2024 H1 2023 Δ 430.0 Net revenue 429.3 371.6 15.5% 9.6 0.8 Gross margin 264.4 225.6 17.2% 410.0 38.1 Operating expenses 178.5 151.8 17.5% 390.0 Share-based payments and LTI 1.4 1.6 -15.1% 4.6 4.8 370.0 EBITDA before n
Slide 13: EMEA: Strong performance across the board offsetting Poland impact
EMEA: Strong performance across the board offsetting Poland impact Revenue Profitability +9.7% +2.9% 45.0 35.0% 160.3 40.0 146.1 34.0 30.0% 35.0 33.1 42.0 53.5 25.0% 30.0 24.9 25.0 ` 25.0 22.7% ` 20.0% 20.0 21.2% 79.2 81.7 15.0 15.0% 10.0 10.0% H1 2023 H1 2024 H1 2023 H1 2024 Essentials Brands CS RE
Slide 14: Latin America: REBITDA margin expansion driven by operational excellence
Latin America: REBITDA margin expansion driven by operational excellence Revenue Profitability +6.8% +17.7% 120.0 16.0 19.0% 86.0 14.9 18.5% 80.5 100.0 15.0 18.0% 80.0 1.6 2.2 14.0 17.5% 28.7 17.0% 24.0 13.0 12.7 17.3% ` ` 60.0 16.5% 12.0 16.0% 40.0 20.0 54.9 55.0 11.0 15.7% 15.5% 15.0% 10.0 14.5% 0
Slide 15: North America: Revenue momentum supported by strong market demand
North America: Revenue momentum supported by strong market demand Revenue Profitability +26.2% +35.0% 183.1 40.0 20.0% 35.7 145.0 35.0 19.5% 30.0 19.5% 19.0% 26.4 136.8 25.0 18.5% 100.6 ` 20.0 18.0% ` 18.2% 11.7 11.9 15.0 17.5% 32.8 34.4 10.0 17.0% H1 2023 H1 2024 H1 2023 H1 2024 Essentials Brands C
Slide 16: Free cash flow generation remains strong
Free cash flow generation remains strong Operating working capital as percentage of Cash flow from operating activities development (€m) annualized revenue increased by 290bps YoY to 14.5% driven by phasing out of factoring 60.0 50.0 11.7 14.0 40.0 0.9 30.0 43.3 43.3 41.0 41.0 41.9 Operating cashflo
Slide 17: Solid balance sheet with stable net debt to EBITDA ratio
Solid balance sheet with stable net debt to EBITDA ratio Net debt evolution €m 300.0 5.0 5.5 9.7 250.0 5.0 9.7 200.0 41.9 27.1 150.0 269.7 275.2 239.5 255.1 233.7 100.0 191.8 191.8 218.9 ` 50.0 0.0 On 31 Dec 2023 Operational cash flow Acquisitions and Investments Paid dividend Net interests FX IFRS
Slide 18: FY 2024 outlook
FY 2024 outlook FY 2024 FY 2024 Capex Revenue REBITDA margin €850 – €870m Increase in 3.0 – 3.5% profitability y-o-y of revenue* *Excludes one-off capex projects 18
Slide 19: Conclusion
• Key Highlights Conclusion Rafael Padilla CEO
Slide 20: Together
Global leader in niche pharmaceutical compounding market Strong Cash Operational Sustainability Disciplined Generation Excellence Focus M&A Defensive Unique Market Business Model Positioning Together we create the future of personalized medicine 20
Slide 21: Q&A
• Key Highlights Q&A