Q1 2024 Results
Matthias Gaertner, CEO Falk Neukirch, CFO
May 07, 2024
- Executive summary
- Financial overview
- Guidance 2024, growth story
- Appendix
2
Executive summary
Highlights Q1 2024
Financials
Solid Group financials for Q1 2024 driven by PS business:
- Revenue increase of 5.8% to c. €456m; EBITDA pre increased by 0.8% to €15.1m
- Strong operating CF due to positive operating result and actively managed working capital on the reporting date
- Guidance 2024 confirmed1: Revenue range between €1.9bn - €2.1bn, EBITDA pre range between €82m - €91m
Strategy
including ESG
- ESG-Reporting Q1 2024: Publication of Nonfinancial consolidated statement 2023 including elements according to CSRD2 and EU Taxonomy
- New member of the Executive Board appointed for international business effective May 1, 2024 and extension of two Executive Board contracts
- Signing of Ceban Acquisition 03/20243, 4: Milestone in building the leading European Specialty Pharma platform
1 Guidance published on March 18, 2024 | 2 Corporate Sustainability Reporting Directive | 3, 4 Closing expected in May 2024; Ceban Pharmaceuticals B.V. | 3 |
Executive summary
Snapshot Ceban Pharmaceuticals
Founded | Headquarters | Employees | ||||
2004 | Breda, Netherlands | ~600 | ||||
Financials 2023E | ||||||
~€160m | ~€29m | ~18% | ||||
EBITDA | ||||||
Revenue | EBITDA adj. | |||||
margin adj. | ||||||
Market position per country*
Netherlands | Belgium | Spain |
Market leading | #2 | #5 |
Ceban Pharmaceuticals
- Leading full-service compounding services platform
- Diversified business model covering the full compounding value chain:
- Compounding Services (non-sterile and sterile)
- API Services
- Chain of pharmacies (23 pharmacies operating under 'Medsen' brand)
- Operating 4 well-investedGMP-compliant facilities
- 2 in the Netherlands: non-sterile and sterile compounding
- 1 in Belgium: API repacking and (non)sterile compounding
- 1 in Spain: API repacking
- Services >200 hospitals & clinics, and >3,300 retail pharmacies
- Realised an organic revenue CAGR of ~10% (2021-2023E)
- Highly committed management team with strong track record
* Market position per country of Ceban Pharmaceuticals is based on estimates of Medios | 4 |
Executive summary
Excellent geographic coverage through a market leading German and strong European network
Hamburg
Osnabrueck
Bonn
Aschaffenburg
Saarlouis
Berlin (HQ)
Mannheim
Magstadt
With the acquisition of Ceban*, Medios will have a leading position in
Specialty Pharma compounding
in Europe
Germany
- 6 GMP labs/ 1 blistering lab; 2 central / 2 regional warehouses
- Around 800 specialized partner pharmacies
- FY 2023: Around 400,000 individualized preparations
Europe: Germany, Netherlands, Belgium, Spain
- 10 GMP-(compliant) labs
- Around 800 specialized partner pharmacies in DE,
23 own pharmacies in NL and additional 3,300 partner pharmacies, >200 hospitals across Europe - > 1 million individualized preparations
* Subject to closing expected in May 2024 | 5 |
Executive summary
QoQ - Revenue and EBITDA pre growth
Revenue (€m)
490 | 456 | |||||||
419 | 431 | 422 | 441 | |||||
393 | 399 | 399 | ||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
2022 | 2023 | 2024 |
EBITDA pre¹ €m | ||||||||
17.2 | ||||||||
14.1 | 14.3 | 15.3 | 15.0 | 14.1 | 14.3 | 15.1 | ||
11.1 | ||||||||
3.6 | 3.6 | 3.6 | 3.4 | 3.5 | 2.7 | |||
3.5 | 3.3 | 3.2 | 3.3 | |||||
3.0 | 33..66 | 3.4 | ||||||
2.8 | 2.8 | 3.4 | ||||||
3.0 | ||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
2022 | 2023 | 2024 |
1 EBITDA is defined as consolidated earnings before interest, taxes, depreciation and amortization. EBITDA pre is adjusted for special charges for stock options, expenses for
M&A activities and for performance-based payments for the acquisition of compounding volumes as well as from 2024 expenses for ERP-System implementation | 6 |
Executive summary
YoY: Continuous revenue growth
Revenue in €m | EBITDA pre¹ in €m |
+5.8% | 0.8% | ||
431 | 456 | 15.0 | 15.1 |
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
1 EBITDA is defined as consolidated earnings before interest, taxes, depreciation and amortization. EBITDA pre is adjusted for special charges for stock options, expenses for
M&A activities and for performance-based payments for the acquisition of compounding volumes as well as from 2024 expenses for ERP-System implementation | 7 |
- Executive summary
- Financial overview
- Guidance 2024, growth story
- Appendix
8
Financial overview
Q1 2024 - Solid Group financials and strong operating CF
In € million | Q1 2024 | Q1 2023 | ∆ in % |
Revenue | 456.2 | 431.2 | 5.8% |
Gross profit1 | 27.6 | 27.9 | -0.9% |
gross margin in % | 6.1% | 6.5% | -6.3% |
EBITDA pre2 | 15.1 | 15.0 | 0.8% |
margin in % | 3.3% | 3.5% | -5.7% |
Conversion rate in % (EBITDA pre/gross profit) | 54.6% | 53.6% | 1.9% |
EBIT | 6.5 | 8.0 | -18.5% |
EPS (€), undiluted | 0.17 | 0.20 | -16.2% |
CF from operating activities | 43.4 | -25.4 | <-100.0% |
CF from investing activities | -0.4 | -17.2 | -97.7% |
CF from financing activities | -1.3 | 24.1 | <-100.0% |
Free cash flow3 (before M&A) | 42.9 | -25.6 | <-100.0% |
31 Mar 2024 | 31 Dec 2023 | ∆ in % | |
Inventories | 59.1 | 59.3 | -0.3% |
Cash & cash equivalents | 112.7 | 71.0 | 58.7% |
Equity | 473.0 | 468.8 | 0.9% |
ratio in % | 75.0% | 78.8% | -4.8% |
Comments
- Revenue driven by PS segment
- Gross profit almost flat; growth in PS segment consumed by lower gross profit of PST due to deconsolidation of KB, regulatory headwinds, and higher performance-based payments
- EBITDA pre almost stable; margin impacted by the same effects as described for gross profit above except for the performance based payments (adjusted) and the deconsolidation of KB (almost no EBITDA impact)
- Strong operating CF of €43.4m mainly due to positive operating result and actively managed working capital on the reporting date; consequently, strong free CF
- Investing CF of €-0.4m mainly resulted from investments in property, plant and equipment whereas Q1 2023 was dominated by acquisition of bbw (€19.2m)
- Financing CF of €-1.3m reflects interest payments
(€-0.4 m) mainly provision rates for a bridge loan for the acquisition of CEBAN (€200 m), €-0.3m repayments of financial liabilities and €-0.6m financial liabilities from rental agreements - Increase in cash & cash equivalents , resulting from the positive operating cashflow
1 Gross profit = Revenue - Cost of materials | 2EBITDA is defined as consolidated earnings before interest, taxes, depreciation and amortization. EBITDA pre is adjusted for special charges for stock options, expenses for M&A activities and for performance-based payments for the acquisition of compounding volumes as well as from 2024
expenses for ERP-System implementation | 3 Calculated as follows: Operating CF less CAPEX |KB Kölsche Blister | 9 |
Financial overview
Q1 2024 - Strong PS business; PST impacted by regulatory effects
Pharmaceutical | Patient-specific | Internal Services | IFRS consolidation | Group | ||||||
Supply 'PS' | Therapies 'PST' | |||||||||
FY YoY in € million | Q1 24 | Q1 23 | Q1 24 | Q1 23 | Q1 24 | Q1 23 | Q1 24 | Q1 23 | Q1 24 | Q1 23 |
Total segment revenue | 436.3 | 401.9 | 59.2 | 75.9 | 2.7 | 2.1 | -42.0 | -48.7 | 456.2 | 431.2 |
delta (yoy in %) | 8.6% | -22.0% | 26.3% | 28.8% | 5.8% | |||||
Revenue - external | 401.0 | 368.1 | 55.0 | 62.9 | 0.1 | 0.2 | n/a | n/a | 456.2 | 431.2 |
delta (yoy in %) | 8.9% | -12.5% | -23.3% | 5.8% | ||||||
EBITDA pre* | 11.0 | 10.1 | 5.9 | 6.6 | -1.9 | -1.7 | n/a | n/a | 15.1 | 15.0 |
margin (% of revenue - total) | 2.5% | 2.5% | 10.0% | 8.6% | -71.6% | -82.3% | 3.3% | 3.5% | ||
margin (% of revenue - external) | 2.8% | 2.8% | 10.8% | 10.4% | <-100.0% | <-100.0% | 3.3% | 3.5% | ||
- EBITDA is defined as consolidated earnings before interest, taxes, depreciation and amortization. EBITDA pre is adjusted for special charges for stock options, expenses for M&A activities and for performance-based payments for the acquisition of compounding volumes as well as from 2024 expenses for ERP-System implementation.
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Medios AG published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 13:34:07 UTC.