Fagron N.V.

Earnings Release • Feb 9, 2023

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

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."

FY 2022 Key Financial Figures

	Revenue per region
(€ '000)	FY '22	FY '21	∆	∆ CER	∆ Organic	∆ Organic CER
EMEA	276,409	255,103	8.4%	7.8%	2.7%	2.2%
Latin America	162,336	141,079	15.1%	-1.1%	15.1%	-1.1%
North America	245,136	177,626	38.0%	22.9%	24.0%	10.5%
Group	683,881	573,808	19.2%	10.3%	12.0%	3.8%

	Revenue per segment
(€ '000)	FY '22	FY '21	∆	∆ CER	∆ Organic	∆ Organic CER
Essentials	332,499	287,070	15.8%	7.5%	5.0%	-2.2%
Brands	115,058	102,682	12.1%	2.8%	11.6%	1.9%
Compounding Services1 (CS)	236,323	184,056	28.4%	18.9%	22.8%	13.8%

		Group
(€ '000)	FY '22	FY '21	∆
REBITDA	130,724	118,339	10.5%
REBITDA margin	19.1%	20.6%	-150bps
EPS (€)	0.96	0.84	14.3%
Free cash flow	90,961	57,688	57.7%

¹ Previously Compounding Services and Premium Pharmaceuticals

Financial Review

Income statement

(€ '000)	FY 2022	FY 2021	Δ
Net revenue	683,881	573,808	19.2%
Gross margin	402,586	336,285	19.7%
As % of net revenue	58.9%	58.6%	30bps
Operating costs	270,062	214,651	25.8%
As % of net revenue	39.5%	37.4%	210bps
Subscription rights costs	1,799	3,295	-45.4%
EBITDA before non-recurrent result	130,724	118,339	10.5%
As % of net revenue	19.1%	20.6%	-150bps
Non-recurrent result	2,665	-1,569	269.8%
EBITDA	133,389	116,770	14.2%
As % of net revenue	19.5%	20.3%	-80bps
Depreciation and amortization	35,480	29,332	21.0%
EBIT	97,909	87,438	12.0%
As % of net revenue	14.3%	15.2%	-90bps
Financial result	-10,140	-10,618	-4.5%
Profit before taxes	87,769	76,820	14.3%
Taxes	-17,703	-15,442	14.6%
Net profit	70,066	61,378	14.2%
Net profit per share (€)	0.96	0.84	14.3%
Average number of outstanding shares	72,874,673	72,643,423

(€ '000)	H2 2022	H2 2021	Δ
Net revenue	355,316	297,221	19.5%
Gross margin	212,015	174,695	21.4%
As % of net revenue	59.7%	58.8%	90bps
Operating costs	143,892	110,886	29.8%
As % of net revenue	40.5%	37.3%	320bps
Subscription rights costs	720	1,476	-51.2%
EBITDA before non-recurrent result	67,402	62,333	8.1%
As % of net revenue	19.0%	21.0%	-200bps
Non-recurrent result	3,465	-862	502.1%
EBITDA	70,868	61,471	15.3%
As % of net revenue	19.9%	20.7%	-80bps
Depreciation and amortization	19,760	14,748	34.0%
EBIT	51,108	46,723	9.4%
As % of net revenue	14.4%	15.7%	-130bps
Financial result	-7,954	-4,521	75.9%
Profit before taxes	43,154	42,202	2.3%
Taxes	-8,387	-7,772	7.9%
Net profit	34,767	34,430	1.0%
Net profit per share (€)	0.48	0.47	2.1%
Average number of outstanding shares	72,889,027	72,856,527

Revenue

Consolidated revenue increased by 19.2% (10.3% at constant exchange rates) compared to 2021 to €683.9 million. Organic revenue growth was 12.0% (3.8% at constant exchange rates) compared to 2021.

Gross margin

Gross margin increased by 19.7% to €402.6 million in 2022. Gross margin as a percentage of revenue increased 30 basis points compared to 2021 to 58.9%. Operating costs excluding the costs of subscription rights as percentage of revenue amounted to 39.5% in 2022, an increase of 210 basis points compared to 2021. The costs of subscription rights decreased by 45.4% compared to 2021 to €1.8 million.

EBITDA and EBITDA margin

REBITDA (i.e., EBITDA before non-recurring result) increased by 10.5% (2.6% at constant exchange rates) compared to 2021 to €130.7 million. REBITDA as a percentage of revenue decreased 150 basis points compared to 2021 to 19.1%. The non-recurring result amounted to €2.7 million in 2022 and related mainly to acquisition and restructuring costs offset by the badwill of the acquisition of the 503B facility in Boston (€5.5 million) and the release of contingent liabilities related to acquisitions in North America. EBITDA increased by 14.2% compared to 2021 to €133.4 million. EBITDA as a percentage of revenue decreased 80 basis points compared to 2021 to 19.5%.

Depreciation and amortization

Depreciation and amortization increased by 21.0% compared to 2021 to €35.5 million.

EBIT and EBIT margin

EBIT increased by 12.0% compared to 2021 to €97.9 million. EBIT as a percentage of revenue decreased 90 basis points compared to 2021 to 14.3%.

Profit before tax and tax expenses

Profit before tax increased by 14.3% compared to 2021 to €87.8 million. The effective tax rate as a percentage of profit before taxes was 20.2% in 2022 compared to 20.1% in 2021. The effective cash tax rate was 19.9% in 2022 compared to 24.2% in 2021.

Net profit and EPS

Net profit increased by 14.2% compared to 2021 to €70.1 million. Earnings per share increased by 14.3% compared to 2021 to €0.96.

Balance sheet

(€ '000)	31-12-2022	31-12-2021
Intangible fixed assets	463,401	411,075
Property, plant, and equipment	143,596	128,626
Deferred tax assets	24,785	22,545
Financial fixed assets	4,210	1,556
Financial instruments	13,277	1,197
Other fixed assets	3,731	1,710
Operational working capital	71,203	59,070
Other working capital	-30,347	-26,646
Equity	410,518	325,466
Provisions and pension obligations	4,763	6,112
Financial instruments	181	103
Deferred tax liabilities	4,352	2,510
Net financial debt	274,042	264,941

Cash flow, working capital and net debt

Operating working capital as a percentage of revenue amounted to 10.2%, a decrease of 10 basis points year-on-year and a decrease of 190 basis points compared to the number per 30 June 2022, mostly driven by inventory and operational improvements in all regions and higher factoring.

Net financial debt increased by €9.1 million to €274.0 million as at 31 December 2022. The net financial debt/REBITDA ratio was 1.9x at year-end 2022 compared to 2.2x at 30 June 2022.

Net operational capex decreased by 10.8% compared to 2021 to €18.5 million (2.7% of revenue). Capex mainly related to investments in existing and new facilities.

Free cash flow increased by 57.7% compared to 2021 to €91.0 million.

Business Review

EMEA

(€ '000)	FY '22	FY '21	∆	∆ CER	∆ Organic	∆ Organic CER
Essentials	149,635	142,894	4.7%	4.5%	0.9%	0.6%
Brands	46,130	39,047	18.1%	17.7%	3.0%	2.6%
CS	80,643	73,162	10.2%	9.2%	6.0%	5.0%
Total revenue	276,409	255,103	8.4%	7.8%	2.7%	2.2%

(€ '000)	FY '22	FY '21	∆
REBITDA	60,575	55,619	8.9%
REBITDA margin	21.9%	21.8%	10bps

Organic revenue growth in the EMEA region was 2.2% at constant exchange rates with total growth at constant exchange rates of 7.8% (reported 8.4%) to €276.4 million for the year. This positive performance in the region shows the strengthening of our commercial approach, recovery of elective care and continued progress of pricing pass through, across all our segments.

Brands and Essentials revenue was supported by successful innovative product launches and the improved product availability driven by the completed transition to our Polish GMP repackaging facility. In Essentials, we saw impressive revenue growth in some of our smaller markets, such as Denmark, advancing in revenue diversification across the region.

In Compounding Services, the revenue acceleration is reflective of the continuing normalization of the market, our solid market position in this segment and the success of our Curaphar acquisition. Performance in the Netherlands continued its evolution in line with expectations, supported by contract renewals, the reinforcement of our registration capabilities and progression in passing on price increases. Our emerging countries South-Africa and Israel have shown tremendous growth and offer upside potential over the mid-term.

While the inflationary pressures sustained in the second half of 2022, pricing pass-through progressed along with operational benefits, which resulted in the anticipated improvement of our REBITDA margin in the period. There remains some delay in passing on price increases linked to the longer-term contracts that are more common in Europe than in other regions we operate in.

(€ '000)	FY '22	FY '21	∆	∆ CER	∆ Organic	∆ Organic CER
Essentials	112,923	101,018	11.8%	-4.0%	11.8%	-4.0%
Brands	46,544	37,471	24.2%	5.9%	24.2%	5.9%
CS	2,869	2,590	10.8%	11.9%	10.8%	11.9%
Total revenue	162,336	141,079	15.1%	-1.1%	15.1%	-1.1%

Latin America

(€ '000)	FY '22	FY '21	∆
REBITDA	28,885	30,549	-5.4%
REBITDA margin	17.8%	21.7%	-390ps

Reported revenue growth in the Latin American region was 15.1% to €162.3 million for the year, supported by the continued positive exchange rate impact. At constant exchange rates, revenue declined by 1.1% reflecting the end market softness and increased competitive pressure enduring through the year.

Organic revenue development at constant exchange rates of the Essentials segment reflects the softness in demand and the impact of our focus at maintaining market share in a heightened competitive environment. The Brands segment showed nice organic revenue growth at constant exchange rates supported by innovative product launches and improved product availability, further strengthening its contribution to overall revenue. Compounding Services continued its strong organic revenue growth, supported by customer wins and increasing orders from existing customers.

Compared to – the exceptionally strong - 2021 the region's REBITDA margin showed the impact of the challenging macro-economic environment. While the pricing pressure barely changed, the new GMP repackaging facility in Brazil and the progress made in the centralization of the distribution network supported product availability and efficiency in the second half of the year, resulting in improved profitability for the second semester.

(€ '000)	FY '22	FY '21	∆	∆ CER	∆ Organic	∆ Organic CER
Essentials	69,941	43,158	62.1%	44.3%	1.8%	-9.4%
Brands	22,384	26,164	-14.4%	-23.8%	5.0%	-6.5%
CS	152,810	108,304	41.1%	25.7%	34.5%	19.8%
Total revenue	245,136	177,626	38.0%	22.9%	24.0%	10.5%

North America

(€ '000)	FY '22	FY '21	∆
REBITDA	41,265	32,171	28.3%
REBITDA margin	16.8%	18.1%	-130ps

Organic revenue growth in the North American region was 10.5% at constant exchange rates with total growth at constant exchange rates of 22.9% (reported 38.0%) to €245.1 million for the year, perpetuating a distinctive performance and further strengthening our position in this growing market.

Brands and Essentials reported revenue growth was supported by the acquisition of Letco, partly offset by the divestment of our CMO business. Organic revenue growth of the Essentials segment at constant exchange rates was impacted by the accelerated integration of Letco and a deliberate slowdown of sales as part of our remediation plan following the FDA audit at our St. Paul facility.

Organic revenue growth of Compounding Services at constant exchange rates showed a recovery in the fourth quarter, driven by strong revenue growth at Anazao and our Wichita and Boston sterile outsourcing facilities combined exceeding US\$110 million year-end run rate in line with expectations. In the fourth quarter we saw early signs of the syringe shortage caused by the global vaccination programs easing, but we continue to closely monitor the situation into 2023.

The initial dilutive impact of the Letco and Boston acquisition curtailed the REBITDA margin for the region while we have been able to pass on most of the inflationary increases to our customers.

Finally, implementation of our remedial action plan at the St. Paul facility progresses well and we submit monthly update reports with the FDA, ensuring our commitment to bring the audit to a satisfactory closure.

M&A Developments

Integration of all acquisitions closed during the year, being the 503B facility in Boston (USA), Letco (USA), Pharma-pack (Belgium), Curaphar (the Netherlands), and Hiperscan (Germany), is progressing in line with expectations.

Organizational Developments

Michael Schenck stepped down as non-executive director, effective year-end 2022. His position will not be filled at this time.

ESG Developments

In 2022 Fagron made further progress in realizing our ESG targets. The implementation of energysaving measures progressed as did the electrification of our vehicle fleet. We realized a 20% reduction of our greenhouse gas intensity compared to 2019, considerably better than the targeted 15% reduction. In December 2022, we submitted science-based emission reduction targets for validation by the Science Based Targets initiative to meet the goals of the Paris Agreement of limiting global warming to 1.5°C.

In the second half of 2022, we conducted our bi-annual global employee survey with an all-time high 89% participation rate and a sustainable engagement score of 84% with improved scores on 13 of the 16 categories. This reflects the appreciation by our employees of the good follow-up of the focus areas that came out of the 2020 survey, such as communication and learning & development.

Finally, while our product portfolio expanded further, revenue growth increased and the units of compounded medicine supplied more than doubled in the year, the number of class 1 recalls remained stable in 2022.

Climate impact (Scope 1, 2 and business travel)	20222	20193	Δ	Unit
Greenhouse gas emissions (location based)	13,204	13,135		0.5% Tons CO2 eq
Greenhouse gas intensity (location based)	20.5	25.7		-20.2% Kt CO2 eq per €m revenue at CER

Social and Governance indicators	2022	2021
Fatalities due to accident at work	0	0
Accident at work resulting in long-term injury4	0	0
Class 1 recalls: possible serious side effects5	1	1
Class 2 recalls: possible minor side effects5	7	2
Class 3 recalls: fails to meet quality specifications, no expected side effects5	3	2
Women in management roles	40.6%	40.7%

² Preliminary results: reviewed FY numbers will be published in the 2022 annual report.

³ All environmental targets are versus financial year 2019.

⁴ Long-term injury is an injury where the employee is not fully recovered within six months.

⁵ Number of recalls in 2021 excludes the number of recalls at Fagron France.

Outlook

Assuming no significant changes in current market conditions, we expect a mid-to-high single digit organic revenue growth and an increase in profitability both developing progressively through 2023.

To facilitate further growth and enhance operational excellence of our 503A business in North America (Anazao, Tampa), we will invest a total of US\$18 million with the majority spent in 2023 on top of our regular maintenance capex spend of around 3 to 3.5% of revenue.

We remain committed to our disciplined acquisition strategy in all regions where we are active as part of Fagron's growth strategy.

Our medium-term objectives remain unchanged.

Dividend

The Board of Directors will propose to the General Meeting of Shareholders a gross dividend of €0.25 per share for 2022.

Statement by the statutory auditor

The statutory auditor, Deloitte Bedrijfsrevisoren BV, represented by Ine Nuyts, has confirmed that the audit procedures have been substantially completed. The audit procedures revealed no material adjustments that should be applied to the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity and consolidated cash flow statement as included in this press release.

Webcast

Rafael Padilla (CEO) and Karin de Jong (CFO) will elaborate on the full year 2022 results in a conference call starting at 9.30 AM CET. Registration to the webcast is available via this link. The presentation by means of which they will explain the developments will be available to download from the Fagron website from 8.00 AM CET.

Financial calendar 2023

13 April 2023	Trading update first quarter 2023
3 August 2023	Half year results 2023
12 October 2023	Trading update third quarter 2023

Results and trading updates are published at 7.00 AM CET.

Further information

Karen Berg Global Investor Relations Manager Tel. +31 6 53 44 91 99 karen.berg@fagron.com

About Fagron

Fagron is a leading global company active in pharmaceutical compounding, focusing on delivering personalized medicine to hospitals, pharmacies, clinics, and patients in 30+ countries around the world.

Belgian company Fagron NV has its registered office in Nazareth and is listed on Euronext Brussels and Euronext Amsterdam under the ticker symbol 'FAGR'. Fagron's operational activities are managed by the Dutch company Fagron BV, which is headquartered in Rotterdam.

Important information regarding forward-looking statements

Certain statements in this press release may be deemed to be forward-looking. Such forward-looking statements are based on current expectations and are influenced by various risks and uncertainties. Consequently, Fagron cannot provide any guarantee that such forward-looking statements will, in fact, materialize and cannot accept any obligation to update or revise any forward-looking statement as a result of new information, future events or for any other reason.

In the event of differences between the English translation and the Dutch original of this press release, the latter prevails.

Development net financial debt

(€ '000)
Net financial debt on 31 December 2021	264,941
Operational cash flow	-109,458
Capital increases	-453
Acquisitions and subsequent payments for acquisitions	58,957
Proceeds from shareholdings sold	-3,226
Investments	18,497
Dividends paid	14,571
Net interests	11,907
Exchange rate differences	9,372
Impact IFRS 16	8,934
Net financial debt on 31 December 2022	274,042

Consolidated income statement

(€ '000)	2022	2021
Operating income	695,346	577,918
Revenue	683,881	573,808
Other operating income6	11,466	4,110
Operating expenses	597,437	490,481
Trade goods	281,374	237,523
Services and other goods	116,342	88,789
Employee benefit expenses	158,130	132,503
Depreciation and amortization	35,480	29,332
Other operating expenses	6,111	2,334
Operating profit	97,909	87,438
Financial income	8,833	2,780
Financial expenses	-18,973	-13,397
Profit before tax	87,769	76,820
Taxes	-17,703	-15,442
Profit for the period	70,066	61,378
Attributable to:
Equity holders of the company (net result)	69,612	61,004
Non-controlling interests	454	375
Profit (loss) per share attributable to shareholders during the period
Profit (loss) per share (€)	0.96	0.84
Diluted profit (loss) per share (€)	0.96	0.84

⁶ The increase relates mainly to the badwill of the acquisition of the 503B facility in Boston (€5.5 million).

Consolidated statement of comprehensive income

(€ '000)	2022	2021
Net profit for the financial year	70,066	61,378
Other comprehensive income
Items that will not be reclassified to net profit (loss)
Re-measurements of post-employment benefit obligations	1,964	315
Tax relating to items that will not be reclassified	-491	-79
Items that may be subsequently reclassified to net profit (loss)
Interest hedge	7,384	-
Currency translation differences	18,468	8,968
Other comprehensive income for the year	27,325	9,222
Total comprehensive income for the year	97,391	70,600
Attributable to:
Shareholders	96,936	70,225
Non-controlling interests	454	375

Consolidated statement of financial position

(€ '000)	2022	2021
Non-current assets	653,000	566,709
Goodwill	429,768	380,411
Intangible fixed assets	33,633	30,665
Property, plant, and equipment	104,086	92,338
Leasing and similar rights	39,510	36,287
Financial fixed assets	4,210	1,556
Financial instruments	13,277	1,197
Other fixed assets	3,731	1,710
Deferred tax assets	24,785	22,545
Current assets	318,010	233,711
Inventories	108,337	90,834
Trade receivables	60,722	51,897
Other receivables	23,614	20,335
Cash and cash equivalents	125,337	70,646
Total assets	971,010	800,421
Equity	410,518	325,466
Shareholders' equity (parent)	404,692	320,105
Non-controlling interests	5,826	5,361
Non-current liabilities	389,484	329,892
Provisions	2,024	1,783
Pension obligations	2,739	4,329
Deferred tax liabilities	4,352	2,510
Borrowings	346,673	290,586
Lease liabilities	33,697	30,684
Current liabilities	171,009	145,062
Borrowings	9,461	6,796
Lease liabilities	9,548	7,522
Trade payables	97,856	83,660
Tax liabilities for the current year	7,993	7,211
Other current taxes, remuneration and social security	30,777	23,723
Other current payables	15,191	16,046
Financial instruments	181	103
Total liabilities	560,493	474,954
Total equity and liabilities	971,010	800,421

Consolidated statement of changes in equity

(€ '000)	Share capital & share	Other reserves	Treasury shares	Retained earnings	Total	Non controlling interest	Total equity
Balance as of 31 December 2020	513,987	-289,397	-18,823	47,340	253,107	4,712	257,819
Profit for the period Other comprehensive income		8,948		61,004	61,004 8,948	375 274	61,378 9,222
Total comprehensive income for the period		8,948		61,004	69,951	649	70,600
Capital increase	6,798				6,798		6,798
Declared dividends				-13,046	-13,046		-13,046
Share-based payments		3,295			3,295		3,295
Balance as of 31 December 2021	520,785	-277,154	-18,823	95,297	320,105	5,361	325,466
Profit for the period				69,612	69,612	454	70,066
Other comprehensive
income		27,163			27,163	161	27,325
Total comprehensive income for the period		27,163		69,612	96,775	616	97,391
Capital increase	453				453		453
Declared dividends				-14,592	-14,592		-14,592
Share-based payments		1,799			1,799		1,799
Balance as of 31 December 2022	521,238	-248,191	-18,823	150,317	404,541	5,977	410,518

Consolidated cash flow statement

(€ '000)	2022	2021
Operating activities
Profit before taxes from continued operations	87,769	76,820
Taxes paid	-17,454	-18,614
Adjustments for financial items	10,140	10,618
Total adjustments for non-cash items	31,143	32,297
Total changes in working capital	-2,140	-22,701
Total cash flow from operating activities	109,458	78,419
Investment activities
Capital expenditure	-18,497	-20,731
Investments in existing shareholdings (subsequent payments) and in
new holdings	-53,997	-11,192
Proceeds from shareholdings sold	3,226	-
Total cash flow from investment activities	-69,269	-31,923
Financing activities
Capital increase	453	6,798
Dividends	-14,571	-13,028
New borrowings	135,000	66,173
Reimbursement of borrowings	-85,727	-99,488
Payment of lease obligations	-9,396	-8,334
Interest received	3,569	1,584
Interest paid	-15,476	-15,353
Total cash flow from financing activities	13,852	-61,648
Total net cash flow for the period	54,042	-15,152
Cash and cash equivalents – start of period	70,646	84,248
Gains (losses) on currency translation differences	649	1,550
Cash and cash equivalents – end of period	125,337	70,646
Changes in cash and cash equivalents	54,042	-15,152

Alternative performance indicators

(€ '000)	2022	2021
Operating profit (EBIT)	97,909	87,438
Depreciation and amortization	35,480	29,332
EBITDA	133,389	116,770
Non-recurring result7	-2,665	1,569
REBITDA	130,724	118,339
Net financial debt
Borrowings - non-current	346,673	290,586
Lease liabilities - non-current	33,697	30,684
Borrowings - current	9,461	6,796
Lease liabilities - current	9,548	7,522
Cash and cash equivalents	125,337	70,646
Total net financial debt	274,042	264,941
Inventories	108,337	90,834
Trade receivables	60,722	51,897
Trade payables	-97,856	-83,660
Operational working capital	71,203	59,070
Total cash flow from operating activities	109,458	78,419
Capital expenditure	-18,497	-20,731
Free cash flow	90,961	57,688

⁷ Including the badwill of the acquisition of the 503B facility in Boston (€5.5 million).