Q1 2024 Results

Matthias Gaertner, CEO Falk Neukirch, CFO

May 07, 2024

  1. Executive summary
  2. Financial overview
  3. Guidance 2024, growth story
  4. 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

  1. Executive summary
  2. Financial overview
  3. Guidance 2024, growth story
  4. 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.

10

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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.