Fagron Sa · EURONEXT:FAGR
Fagron Sa — Fagron Sa Ord — H1 2022 Earnings Presentation
19 slides from Fagron Sa's earnings presentation, Aug 4, 2022
Slide 1: H1 2022 Results
H1 2022 Results 4 August 2022 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: Agenda
Agenda Key Highlights Rafael Padilla CEO Financial Review Karin de Jong CFO Outlook Rafael Padilla CEO Questions
Slide 4: Key Highlights
Key Highlights Rafael Padilla CEO
Slide 5: Resilient results in a challenging operating environment
Resilient results in a challenging operating environment Total REBITDA Revenue €63.3m Strong revenue & REBITDA growth across all regions in an €328.6m increasingly uncertain operating environment Reported Reported growth growth Decline in REBITDA margin due to supply chain disruptions and +18.8% +13
Slide 6: Clear focus on driving operational excellence
Clear focus on driving operational excellence Global Vera Bakker Maarten Pouw Dedicated 21.5% reduction in carbon procurement team Global launch of footprint intensity versus appointed as appointed as EMEA focused on cost Dilucap 2019 COO Area Lead optimisation EMEA Latin America North America • Ret
Slide 7: St. Paul's facility timeline
Focus on quality remains key competitive strength; Remedial actions submitted to FDA regarding St. Paul facility Global quality KPIs* Nov-21 • 2021 – FDA Audit conducted, and certain observations were made 1–4 St. Paul’s facility timeline Dec-21 • Submitted corrective action plan & started implement
Slide 8: Continued momentum in the execution of our M&A strategy
Continued momentum in the execution of our M&A strategy Segment: Brands and Essentials Segment: Brands and Essentials Segment: Compounding Services Region: North America Region: Belgium Region: Netherlands Acquired in: February 2022 Acquired in: February 2022 Acquired in: February 2022 Strategic Str
Slide 9: 503B Boston facility to play a key role in mid-term success
503B Boston facility to play a key role in mid-term success 50k sq ft 80 employees State of art facility Expand licenses Modern 503B facility will be a key Increase number of licenses to serve more enabler to maintain very high standards states, in particular Florida, Texas and California Footprint
Slide 10: Financial Review
Financial Review Karin de Jong CFO
Slide 11: H1 2022 financial highlights
H1 2022 financial highlights 350,0 0,3 328.6 Underlying revenue growth seen across all regions with a currency 325,0 0,25 tailwind 300,0 0,2 276.6 275,0 0,15 Operating costs under pressure due to inflation increases and 250,0 supply chain disruptions 225,0 0,1 0,05 200,0 19.3% EBITDA margin versus 2
Slide 12: Revenue growth supported by all regions and positive FX impact
Revenue growth supported by all regions and positive FX impact (€ m) H1 2022 H1 2021 Δ 20.5 -8.1 Net turnover 328.6 276.6 18.8% 21.1 Gross margin 190.6 161.6 17.9% Operating costs 126.2 103.8 21.6% 13.5 Subscription rights costs 1.1 1.9 -40.7% 2.6 2.4 EBITDA before non-recurrent result 63.3 56.0 13.
Slide 13: Compounding services the fastest growing segment
Compounding services the fastest growing segment Essentials Brands Compounding Services 167.3 70 120 170 110 105.8 60 55.4 150 140.3 51.4 100 130 50 90 84.9 40 80 110 70 30 90 60 20 70 50 50 10 40 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Revenue in €m Revenue in €m Revenue in €m • 11.5% incre
Slide 14: Revenue and profitability dynamics across regions
Revenue and profitability dynamics across regions EMEA Latin America North America 125 20,0% 160 160 25,0% 25,0% 78.6 30,0% 30,0% 125 112.3 20,0% 19,5% 137.7 75 75 140 140 128.9 24,0% 24,0% 65.4 25,0% 25,0% 100 100 19,0% 19,5% 120 120 23,0% 23,0% 82.3 19,0% 18,5% 22,0% 22,0% 20,0% 20,0% 75 18,5% 50
Slide 15: Strong free cash generation Y-o-Y
Strong free cash generation Y-o-Y Cashflow from operating activities development (€m) Operating working capital increased by 34.9% from end of FY 2021 50,0 45,0 0.7 0.8 40,0 7.2 35,0 38.6 30,0 25,0 31.3 Strategic decision to increase inventory position to ensure product 20,0 15,0 availability 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 (€m) in € million 4.7 9.9 5.0 10.0 -3.2 6.7 48.8 -38.6 - 0.5 303,1 307.8 288,2 293,2 271,5 271,5 278,2 264.9 226,3 225,9 225,9 On 31-Dec-21 Operational cash Capital increases Acquisitions Shares sold Investments Paid dividend Ne
Slide 17: Outlook
ct Outlook Rafael Padilla CEO
Slide 18: Full year 2022 outlook
Full year 2022 outlook Key business consideration in H2 2022 Accelerated integration Opportunities H1 2022 Guidance Pricing pass through Product breadth & innovation FY 2022 Revenue* €328.6m €670m – €690m Operational excellence Regulatory dynamics H2 margin to be REBITDA margin* 19.3% higher than H1
Slide 19: Questions
Questions