Interim report January-March 2016

January - March 2016

  • Net sales amounted to SEK 973 million (873), an increase of 11%
  • EBITDA amounted to SEK 136 million (158) giving an EBITDA margin of 14.0% (18.1)
  • Operating profit (EBIT) amounted to SEK 69 million (100) 
  • Profit after tax amounted to SEK 25 million (121), where last year included SEK 46.6 million non-recurring financial gain
  • Earnings per share amounted to SEK 0.52 (2.74), after dilution 0.52 (2.74). Adjusted EBITDA, excluding the SEK 46.6 million non-recurring financial gain, amounted to SEK 0.52 (1.68).
  • Cash flow from operating activities was SEK -60 million (148)
  • Net debt to EBITDA was 3.1 (2.1)

Key figures
   Jan - Mar    change    Apr 15
SEK million 2016 2015 in % - Mar 16 2015
Net sales 973 873 11.4 3 489 3 389
Net sales (constant FX rates) 978       12.0 3 344
EBITDA 136 158 -13.7 488 510
EBIT 69 100 -31.4 243 274
EBITDA margin (%) 14.0 18.1 14.0 15.0
Earnings per share 0.52 2.74 2.55 4.72
Return on equity (%) 4.0 13.1 8.8
Equity per share (SEK) 64.1 59.3 59.2
Equity to assets (%) 40.8 49.9 48.1
Net debt 1 510 937 1 183
Net debt to Equity 0.5 0.3 0.4
Net debt to EBITDA 3.1 2.1 2.3

Thomas Eldered, CEO:
“Sales developed overall in-line with our expectations during the quarter, with reported sales growth compared to the first quarter 2015 of 12 percent in local currencies. Acquisitions completed during the last twelve months performed as planned and represented approximately 50% of the growth. An important contributor to growth was sales under the new outsourcing contract in Kaysersberg which more than compensated lower sales of Thyrosafe and other high margin sales in the Development & Technology segment. We saw continued strong demand for our lyophilisation services while we saw lower demand for liquid injectables. 
EBITDA-margin increased sequentially from 12.7 percent to 14.0 percent in the quarter. While we faced decreased demand of a few high margin products and the profit impact of less Thyrosafe sales in D&T the margin developed particularly favourably in the segment Manufacturing Services Solids & Others. The improved margin in this segment was due to several non-recurring items, but was also negatively affected by a phasing of revenue into later quarters. We started to implement the Cost and Efficiency program in Sweden but the impact during the quarter was not material and most of the savings will be achieved during the second half of the year. In the Manufacturing Services Sterile Liquids segment business from the new contract in Kaysersberg contributed according to our expectations. It compensated the from third quarter 2015 discontinued packaging-only contract and a negative non-recurring inventory revaluation.

The year has started with an intensive acquisition activity, and we have taken several important steps in the implementation of our strategic growth plan. We are thereby further strengthening our synergistic business model by aligning development and manufacturing globally. When these acquisitions are completed we will have a global setup with a leading asset base in Europe, an excellent capability in India and a bridgehead providing improved access to US based customers. We are growing the company in-line with our recently established overall financial objectives. Although we have more hard work ahead of us, I am confident these targets will be achieved and we are on our way to become a global leader in our industry.

Going forward we expect to see continued sequential increases in EBITDA-margin and significant growth from announced acquisitions. The markets we operate in remain challenging, but I am convinced that we will benefit from the global reach and our competitive value proposition to customers. There are tremendous opportunities in our new global structure and we are determined to explore these.”

The complete interim report is attached through the link at the end of the press release.

The company invites investors, analysts and media to a web conference with a presentation (in English) on 28 April at 10:00 am CET where CEO Thomas Eldered and CFO Björn Westberg will present and comment on the interim report and answer questions.

To participate in the web conference, please use the below link:

http://edge.media-server.com/m/p/a7pkzj8w

Questions may be submitted by dialing below telephone numbers or by typing them in the Q&A box during the conference. If you don’t wish to ask questions by telephone you only need to participate through the link above.

From Sweden: + 46 8 505 963 06
From Denmark: + 45 354 45597
From Finland: + 358 9 8171 0317
From France: + 33 29092 0977
From Germany: + 49 30 211 510 067
From India: + 91 226187 51 03
From Italy: + 39 2 3604 67 98
From Norway: + 47 235 00 559
From Portugal: + 35 210 609104
From Spain: + 34 911 143 608
From Switzerland: + 41 44 5800083
From the UK: + 44 203 139 48 30
From the USA: + 1 718 873 90 77

Pin code for participants:
38308984#

For more information, please visit www.recipharm.com or contact:
Thomas Eldered, CEO, +46 8 602 52 10
Björn Westberg, CFO, ir@recipharm.com, +46 8 602 46 20

This information is published in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ Stockholm. This information was submitted for publication on 28 April 2016 at 07:45 am CET.

About Recipharm
Recipharm is a leading CDMO (Contract Development and Manufacturing Organisation) in the pharmaceutical industry employing some 3,200 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from Big Pharma to smaller research- and development companies. Recipharm’s turnover is approximately SEK 4.6 billion and the Company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden and the UK and is headquartered in Jordbro, Sweden. The Recipharm B-share (RECI B) is listed on NASDAQ Stockholm.

For more information on Recipharm and our services, please visit www.recipharm.com

Recipharm AB (publ)
Corporate identity number 556498-8425
Address Lagervägen 7, SE-136 50 Jordbro, Sweden,  Telephone 46 8 602 52 00,  Fax  46 8 81 87 03

www.recipharm.com

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About Us

About RecipharmRecipharm is a leading CDMO (Contract Development and Manufacturing Organisation) in the pharmaceutical industry employing some 5 000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from Big Pharma to smaller research- and development companies. Recipharm’s turnover is approximately SEK 5.3 billion and the company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US and is headquartered in Stockholm, Sweden. The Recipharm B-share (RECI B) is listed on Nasdaq Stockholm. For more information on Recipharm and our services, please visit www.recipharm.com

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The markets we operate in remain challenging, but I am convinced that we will benefit from the global reach and our competitive value proposition to customers. There are tremendous opportunities in our new global structure and we are determined to explore these
Thomas Eldered