In This Article:
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Net Sales: EUR 448.7 million, down 9.6% compared to H1 '23.
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Sales to Sanofi: Decreased by 14.9%.
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Sales to Other Clients: Decreased by 4.6%.
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Core EBITDA: EUR 47.6 million, margin of 10.6% compared to 12.6% last year.
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CapEx: EUR 61.3 million, representing 13.7% of net sales.
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Gross Profit Margin: 21.8%, up by 231 bps year on year.
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Net Loss: EUR 34.8 million for the period.
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Free Cash Flow: EUR 10 million compared to minus EUR 111.2 million at the end of June '23.
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Net Debt to Core EBITDA: 2.38 times, below the RCF covenant of four.
Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Euroapi SA (EAPIF) is on track with its FOCUS-27 plan, with several initiatives launched and advanced discussions for financing.
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The company registered solid momentum in CDMO with 14 new projects in H1, aligning with its strategy to de-risk its portfolio.
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The restart of shipments and production in Brindisi is progressing as expected, with the GMP license reinstated in mid-July.
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Core EBITDA margin was positively impacted by increased prices, better product mix, and improved industrial performance.
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Significant improvement in financial discipline and cash flow, with a reduction in working capital and improved cash collection.
Negative Points
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Consolidated net sales decreased by 9.6%, driven by a strong decline in demand from Sanofi and suspension of production in Brindisi.
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Core EBITDA decreased by 23.8% compared to the previous year, with a margin drop from 12.6% to 10.6%.
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The company recorded a net loss of EUR34.8 million for the period, impacted by non-recurring costs and restructuring expenses.
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Sales to Sanofi dropped by 14.9%, and sales to other clients decreased by 4.6%, affecting overall revenue.
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The financial result was negatively impacted by increased interest rates and full drawdown of the ICS, leading to a negative EUR8.1 million.
Q & A Highlights
Q: Could you explain the factors influencing the second half of 2024, particularly regarding the core EBITDA margin, and how should we think about margin progression in 2025? A: The second half of 2024 is expected to have lower profitability due to a different volume mix, reduced benefits from renegotiated terms with Sanofi, and the cautious restart of the Brindisi plant. For 2025, while specific margin guidance wasn't provided, the focus remains on executing the FOCUS-27 plan, with more cost benefits expected in 2026-2027. The Haverhill divestment and non-repeating benefits from 2024 are also considerations.