Fagron Sa · EURONEXT:FAGR
Fagron Sa — Fagron Sa Ord — H1 2023 Earnings Presentation
20 slides from Fagron Sa's earnings presentation, Aug 3, 2023
Slide 1: H1 2023 Results
H1 2023 Results 3 August 2023 Rafael Padilla Karin de Jong CEO CFO
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 Rafael Padilla CEO
Slide 4: Strong revenue growth with resilient margin performance
Strong revenue growth with resilient margin performance Organic revenue growth of 8.4% at CER driven by strong Total performance at Wichita and Anazao in NA and by all segments in Revenue REBITDA EMEA €371.6m €72.2m Revenue momentum across all businesses underpinned by strategic actions and improvin
Slide 5: EMEA: Successful competitive strengthening combined with operational excellence
EMEA: Successful competitive strengthening combined with operational excellence Revenue growth reflects well-executed pricing pass through exercise; now concluded +4.7% 22.7% H1 2023 H1 2023 Efficiency improvements through the Poland cGMP repackaging organic REBITDA facility revenue growth at Margin
Slide 6: Latin America: Committed to maintaining market leadership while driving operational efficiencies
Latin America: Committed to maintaining market leadership while driving operational efficiencies Continued competitive pressure with signs of customer demand strengthening -0.2% 15.7% H1 2023 H1 2023 Distribution centralization completed; expected to support stronger organic REBITDA performance in H
Slide 7: North America: Seizing market opportunity, focus on growth while maintaining high quality standards
North America: Seizing market opportunity, focus on growth while maintaining high quality standards Increased regulatory scrutiny reinforces focus on quality; committed to ensuring the highest standards +19.2% 18.2% H1 2023 H1 2023 Successfully moved API repackaging to Letco; St. Paul facility to or
Slide 8: Managing risks in an evolving operating environment
Managing risks in an evolving operating environment Indicators Opportunity to risk bar Comments Inflation Pricing pass through in EMEA reached end of cycle Strengthening commercial approach and maintaining market External factors Competition leadership Heightened regulatory scrutiny; prudent investm
Slide 9: Financial Review
Financial Review Karin de Jong CFO
Slide 10: H1 2023 financial highlights
H1 2023 financial highlights 400.0 0.3 0.25 Revenue growth driven mainly by NA, EMEA and currency 375.0 tailwind 0.2 350.0 0.15 371.6 325.0 0.1 Operating costs reflects inflation related increases and high volumes in NA 300.0 328.6 0.05 275.0 0 H1 2022 H1 2023 10bps margin improvement reflects prici
Slide 11: Revenue growth supported by North America, EMEA and M&A
Revenue growth supported by North America, EMEA and M&A Revenue bridge P&L statement (€m) (€ m) H1 2023 H1 2022 Δ Net revenue 371.6 328.6 13.1% 1.1 Gross margin 225.6 190.6 18.4% 3.0 13.5 Operating expenses 151.8 126.2 20.3% 21.3 Share based payments and LTI 1.6 1.1 47.8% 0.2 EBITDA before non-recur
Slide 12: EMEA: Strong revenue growth supporting margin expansion
EMEA: Strong revenue growth supporting margin expansion Revenue (€m) 160.0 146.1 Revenue growth of 6.1% supported by positive results in all 137.7 140.0 segments 42.0 120.0 37.6 100.0 23.0 24.9 80.0 60.0 40.0 77.1 79.2 Gross margin benefited from pricing pass through and improved 20.0 - sourcing H1
Slide 13: Latin America: Challenging environment impacts H1 2023 performance
Latin America: Challenging environment impacts H1 2023 performance Revenue (€m) Revenue increased slightly supported by FX tailwind despite 90.0 78.6 80.5 challenging macro economic conditions and heightened 80.0 +2.4% 1.4 1.6 competitive environment 70.0 60.0 21.7 24.0 50.0 40.0 30.0 55.5 54.9 20.0
Slide 14: North America: Strong revenue growth and resilient margin
North America: Strong revenue growth and resilient margin Revenue (€m) 160.0 145.0 Revenue growth driven by impressive performance at FSS and 140.0 Anazao 120.0 112.3 100.0 100.6 80.0 66.8 60.0 40.0 10.7 11.7 20.0 34.7 32.8 Gross margin improvement mainly driven by better product mix - H1 2022 H1 20
Slide 15: Free cash flow generation intact when adjusting for one-off capex
Free cash flow generation intact when adjusting for one-off capex Cashflow from operating activities development (€m) 50.0 45.0 2.0 2.5 9.2 40.0 Operating working capital as percentage of revenue improved 35.0 43.3 YoY reflecting improved payment terms in EMEA and NA 30.0 38.6 25.0 20.0 15.0 10.0 5.
Slide 16: Strong balance sheet and sufficient room for M&A
Strong balance sheet and sufficient room for M&A Net debt evolution YTD in €m 6.6 4.2 3.7 13.1 43.3 21.0 274.0 269.7 273.3 267.3 3.2 5.6 254.2 230.8 233.2 227.6 227.6 On 31-Dec-22 Operational cash flow Capital increases Acquisitions Investments Paid dividend Net interests FX IFRS 16 On 30-Jun-23 Net
Slide 17: FY 2023 outlook
FY 2023 outlook FY 2023 High single digit organic growth Revenue FY 2023 Increase in profitability REBITDA margin 3.5% of revenue Capex & One-off capex related to licensing deal, Tampa and Decatur 17
Slide 18: Conclusion
Conclusion Rafael Padilla CEO
Slide 19: Together we personalize medicine
Global leader in niche pharmaceutical compounding market Capitalizing on unique market 01 positioning Strong cash generation 02 capability Together 03 Operational excellence a key strategic focus we personalize medicine Disciplined M&A approach & 04 strong execution capabilities Sustainability remai
Slide 20: Questions
personalizin; medicine