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Fagron reports 19% topline growth, 11% increase in REBITDA and free cash flow of €91 million for 2022

Fagron NV
Fagron NV

Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 9 February 2023 – 7.00 AM CET

Fagron reports 19% topline growth, 11% increase in REBITDA and free cash flow of €91 million for 2022

Fagron, the leading global player in pharmaceutical compounding today publishes its full year results for the period ending 31 December 2022.

FY 2022 Key Highlights

  • Revenue growth of 10.3% at CER with organic revenue growth of 3.8% at CER to €683.9 million (€676.7 million excluding Boston)

  • REBITDA increased by 10.5% to €130.7 million; 19.1% REBITDA margin (19.6% excluding Boston)

  • Combined run-rate of Wichita and Boston sterile outsourcing facilities exceeded US$110 million

  • Earnings per share increased by 14.3% to €0.96

  • Highly cash generative business delivering 57.7% increase in free cash flow to €91.0 million

  • Five acquisitions completed in line with buy-and-build strategy

  • Leverage ratio of 1.9x allows sufficient headroom to support disciplined M&A strategy

  • Outperformed greenhouse gas intensity reduction target as we remain committed to our sustainability agenda

  • Dividend proposal of €0.25 per share

  • For FY 2023, we expect mid-to-high single digit organic revenue growth with an increase in profitability, both developing progressively through the year, and one-off capex investments in North America

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Rafael Padilla, CEO of Fagron commented

“The continued resilience of our industry, allied with strong execution capabilities and our teams’ relentless focus on strategic execution enabled us to deliver strong results for the year.

We expanded our operating profit in the second semester to deliver a margin of 19.8% excluding the impact of the Boston acquisition. For the full year and including the Boston impact, margin came in at 19.1% despite the inflationary pressures. This was driven by the continued and impressive turnaround in EMEA because of positive developments across our traditional and smaller markets. We made further progress in North America with pleasing organic growth supplemented by two sizeable acquisitions that demonstrate our long-term commitment to the region. The combined run-rate of our Wichita and Boston sterile outsourcing facilities exceeded US$110 million in line with our expectations. Over the course of this year, we have witnessed an industry wide increase in regulatory scrutiny in the US and we have adopted a pragmatic approach to ensure that quality remains our key competitive advantage. The Latin America region has faced numerous external challenges this year and we have taken the necessary actions to ensure we maintain our market leading position and are already seeing benefits, with an expansion of our margin in the second half of the year. Free cash generation was outstanding with 58% growth year over year, further reinforcing the underlying strength of our business model and supporting our ability to maximize stakeholder value over the long term.

Although we expect further macro challenges in 2023, I am confident we will manage these developments and deliver on our ambitions as the global demand for personalizing medicine continues to accelerate and Fagron is best positioned to capitalize on this opportunity.

Finally, Michael Schenck stepped down as non-executive director from our Board. We thank him for his valuable contribution to the Board of Directors.

Please open the link below for the full press release:
Fagron reports 19% topline growth, 11% increase in REBITDA and free cash flow of €91 million for 2022