Fagron Sa · EURONEXT:FAGR
Fagron Sa — Fagron Sa Ord — FY 2022 Earnings Presentation
22 slides from Fagron Sa's earnings presentation, Feb 9, 2023
Slide 1: FY 2022 Results
FY 2022 Results 9 February 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: FY 2022 results highlights
FY 2022 results highlights Total REBITDA Strong revenue growth supported by underlying business drivers, Revenue €130.7m €683.9m* M&A and FX H2 2022 REBITDA margin of 19.8% excluding Boston ahead of Reported 19.3% in H1 2022 Reported growth growth +19.2% +10.5% Continued roll out of disciplined acqu
Slide 4: Demonstrating flexibility in a fast changing operating environment
Demonstrating flexibility in a fast changing operating environment • Dynamic pricing pass through Inflation • Re-negotiating procurement terms • Strengthening commercial approach External disruption risk Increasing competition • Maintaining market leadership • High focus on quality Evolving regulato
Slide 5: EMEA: Successful competitive strengthening on the back of progressive improvements
EMEA: Successful competitive strengthening on the back of progressive improvements Stabilization of Compounding Services 2.2% organic revenue growth at 21.9% REBITDA 2.6% increased product CER Margin availability Efficiency improvements through the Poland GMP repackaging facility 3 acquisitions comp
Slide 6: Latin America: Demonstrating resilience whilst maintaining market leadership
Latin America: Demonstrating resilience whilst maintaining market leadership Performance impacted by macro & political developments, competitive -1.1% organic revenue growth at 17.8% REBITDA 2.8% increased product dynamics and end market softness CER Margin availability Efficiency improvements throu
Slide 7: North America: Seizing market opportunity and focused on driving quality
North America: Seizing market opportunity and focused on driving quality as a competitive advantage 10.5% organic revenue growth at 16.8% REBITDA 3.2% increased product Increased regulatory scrutiny reinforces focus on quality; committed to ensuring the highest standards CER Margin availability Driv
Slide 8: ESG: A key strategic pillar
ESG: A key strategic pillar Giving Back Good Low impact on Benefits to Our Responsibility in Governance Environment People Supply Chain Numerous 99% of eligible 20% reduction 2022 Global Acceptation donations and employees carbon footprint Employee Survey: Fagron’s Business fundraising completed ann
Slide 9: Financial Review
Financial Review Karin De Jong CFO
Slide 10: FY 2022 financial highlights
FY 2022 financial highlights 725.0 0.3 700.0 683.9 675.0 Revenue growth driven by North America and EMEA, M&A, FX 650.0 0.25 625.0 600.0 573.8 575.0 0.2 550.0 525.0 500.0 0.15 Operating costs under pressure due to inflationary pressure and 475.0 450.0 425.0 supply chain disruptions 400.0 375.0 0.1 3
Slide 11: Revenue growth supported by North America and EMEA, M&A, FX
Revenue growth supported by North America and EMEA, M&A, FX (€ m) FY 2022 FY 2021 Δ 700.0 15.5 Net turnover 683.9 573.8 19.2% 46.1 Gross margin 402.6 336.3 19.7% 650.0 Operating costs 270.1 214.7 25.8% 58.5 Subscription rights costs 1.8 3.3 -45.4% 600.0 EBITDA before non-recurrent result 130.7 118.3
Slide 12: EMEA: Progressive turnaround reflective of management actions
EMEA: Progressive turnaround reflective of management actions Revenue Topline growth supported by recovery of the underlying organic growth 300.0 276.4 255.1 250.0 80.6 200.0 73.2 138.7 39.0 46.1 150.0 126.2 100.0 36.7 43.0 Brands & Essentials: Successful innovative product launches and 18.4 23.1 14
Slide 13: Latin America: Improved margin in the second half of the year
Latin America: Improved margin in the second half of the year Revenue Muted topline growth dynamics; favourable FX impact 180.0 162.3 160.0 141.1 2.9 140.0 2.6 46.5 120.0 83.8 37.5 100.0 75.7 1.5 80.0 1.4 24.8 Essentials: Continued end market softness and heightened 60.0 40.0 20.7 101.0 112.9 53.5 5
Slide 14: North America: Enhanced market positioning inline with long term goals
North America: Enhanced market positioning inline with long term goals Revenue Topline growth driven by organic growth, M&A and FX 300.0 250.0 245.1 200.0 177.6 152.8 150.0 132.8 108.3 Essentials: Accelerated Letco integration; deliberate slowdown of 100.0 95.3 86.0 61.1 22.4 sales as part of remedi
Slide 15: Strong free cash generation growth with 58% increase Y-o-Y
Strong free cash generation growth with 58% increase Y-o-Y Cashflow from operating activities development (€m) Operating working capital as a percentage of revenue down by 145.0 10bps Y-o-Y to 10.2% 125.0 105.0 1.2 13.3 85.0 16.6 Impressive working capital recovery in H2 2022 driven by inventory 65.
Slide 16: Strong balance sheet and sufficient room for M&A
Strong balance sheet and sufficient room for M&A Net debt evolution for FY 2022 in € million 300.0 8.9 9.4 250.0 11.9 14.6 3.2 18.5 200.0 109.5 59.0 150.0 0.5 274.1 264.9 255.8 265.2 243.9 229.2 100.0 210.7 210.7 155.4 155.0 155.0 50.0 0.0 On 31-Dec-21 Operational cash Capital increases Acquisitions
Slide 17: Outlook
ct Outlook Karin De Jong CFO
Slide 18: Reinvesting capital for long-term sustainable growth whilst maintaining balance sheet strength
Reinvesting capital for long-term sustainable growth whilst maintaining balance sheet strength Organic Investment M&A • Maintenance CAPEX to represent 3 – 3.5% • Stringent and selective approach to of revenue acquisitions in all our regions • Invest $18 million in Anazao with 80-90% • Focus on small
Slide 19: FY 2023 outlook
FY 2023 outlook Key business consideration in FY 2023 Pricing pass-through Opportunities Guidance FY 2023 Product breadth & innovation Procurement savings • Mid-to-high single digit Regulatory dynamics Revenue* organic growth M&A REBITDA* Macroeconomic environment Threats • Increase in profitability
Slide 20: Conclusion
Conclusion Rafael Padilla CEO
Slide 21: Together we personalize medicine
Global leader in niche pharmaceutical compounding market 01 Capitalizing on unique market positioning 02 Strong cash generation capability Together we personalize 03 Operational resilience a key strategic enabler medicine 04 Strong M&A execution capabilities 05 Sustainability remains a key strategic
Slide 22: Questions
Questions