In This Article:
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Revenue: EUR429 million for H1 2024, 15.5% growth year-on-year.
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Organic Growth at CER: 12.8% overall, with North America at 26.2%.
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EBITDA Margin: Increased by 30 basis points to 19.7%.
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Gross Margin: Improved by 19 basis points.
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Operating Cash Flow: Improved by 35% to EUR58.3 million, excluding factoring impact.
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Net Debt-to-EBITDA: Increased slightly to 1.5 times from 1.4 times at the end of 2023.
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Capex: EUR12.9 million excluding one-offs, with significant investments planned in the Netherlands and Wichita.
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Earnings Per Share: Increased by 22.2% to $0.55 for H1 2024.
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Full Year Revenue Guidance: Upgraded to EUR850 million to EUR870 million.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fagron SA (ARSUF) achieved a 12.8% organic growth at constant exchange rates, with revenues increasing to EUR429 million for the first half of 2024.
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The company's EBITDA margin improved by 30 basis points to 19.7%, reflecting synergies from acquisitions and operational excellence initiatives.
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North America reported a strong growth of 26.2%, driven by improvements in operational excellence and consolidation of the Letco facility.
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Fagron SA (ARSUF) upgraded its full-year revenue guidance to a range of EUR850 million to EUR870 million, indicating confidence in continued growth.
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Strong cash flow conversion with operating cash flow improving by 35% to EUR58.3 million, excluding the factoring impact, showcases solid cash-generating capabilities.
Negative Points
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Changes to the reimbursement system in Poland continued to impact results in the EMEA region, affecting profitability.
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Operating expenses grew by 17.5% compared to H1 2023, partly due to an increased workforce to support rising volume growth in North America.
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The net debt-to-EBITDA ratio increased slightly to 1.5 times compared to 1.4 times at the end of 2023, indicating a rise in financial leverage.
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The decision not to proceed with a $20 million investment in a new repackaging facility in Decatur may limit future capacity expansion.
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The company is facing increased regulatory scrutiny and quality requirements, which could impact operational flexibility and costs.
Q & A Highlights
Q: Can you provide details on the Semaglutide revenues and the underlying growth of Anazao excluding drug shortages? A: (Karin de Jong, CFO) The impact of Semaglutide shortages is around USD12 million for the first half, with a similar amount expected for the second half. Excluding this, Anazao's underlying growth was around 12% in the first half.