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Fagron N.V.
Earnings Release • Feb 15, 2024
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Earnings Release
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Regulated information – inside information Nazareth (Belgium)/Rotterdam (The Netherlands), 15 February 2024 – 7AM CET
Fagron delivers strong performance with 12% topline growth and 14% increase in REBITDA for FY 2023
Fagron, the leading global player in pharmaceutical compounding today publishes its full year results for the period ending 31 December 2023.
Key Highlights
- Strong topline performance with 11.6% reported revenue growth (12.5% at CER) and 10.5% organic revenue growth at CER supported by growth across all regions
- 13.9% REBITDA increase translates to 40bps REBITDA margin uplift YoY to 19.5%, reflecting synergies from North America acquisitions and operational excellence benefits
- Operating cash flow increases by 13.9% to €124.6 million resulting in improved leverage ratio of 1.4x
- Acquisition of London Specialist Pharmacy in the United Kingdom
- Dividend proposal of €0.30 per share (+20%)
- Good progress on greenhouse gas intensity reduction target
- FY '24 outlook of high single-digit organic sales growth and continued improvement in profitability
Rafael Padilla, CEO of Fagron:
"I am very pleased to present another set of strong results, exemplifying the resilience of Fagron's diversified business model. In line with our guidance, we have delivered outstanding organic revenue growth of 10.5% at CER YoY and an improved margin, as we progressed on successfully integrating our acquisitions in North America whilst also driving operational excellence globally.
Growth in the EMEA region normalized towards the end of this year as expected, reflecting a solid performance across most of our markets and the impact of the anticipation on the local reimbursement reform in Poland. In Latin America we continued to focus on our commercial and operational efforts, as customer demand keeps improving while the competitive pressures remain. North America continues its excellent performance, driven by growth at FSS and Anazao, as existing and new customers increase their outsourcing of compounding, and strong underlying trends in the prevention and lifestyle segment as well as drug shortages persist. As anticipated, the ongoing integration of our Letco and Boston acquisitions and increased operational efficiency boosted profitability in the region.
The acquisition of London Specialist Pharmacy allows us to enter the compounding market in the United Kingdom, further diversifying our EMEA footprint, whilst adhering to our disciplined acquisition strategy.
For full year 2024, we expect high single-digit organic revenue growth and our profitability to improve YoY. We remain confident in achieving our mid-term objectives and continue to look for attractive growth opportunities that support our strategic ambitions."
FY 2023 Key Financial Figures
| (€ '000) | Revenue per region | |||||
|---|---|---|---|---|---|---|
| FY '23 | FY '22 | ∆ | ∆ CER | ∆ Organic | ∆ Organic CER |
|
| EMEA | 284,912 | 276,409 | 3.1% | 3.5% | 1.9% | 2.2% |
| Latin America | 169,230 | 162,336 | 4.2% | 2.3% | 4.2% | 2.3% |
| North America | 308,850 | 245,136 | 26.0% | 29.4% | 22.0% | 25.5% |
| Group | 762,991 | 683,881 | 11.6% | 12.5% | 9.6% | 10.5% |
| Revenue per segment | ||||||
|---|---|---|---|---|---|---|
| (€ '000) | FY '23 | FY '22 | ∆ | ∆ CER | ∆ Organic | ∆ Organic CER |
| Essentials | 327,406 | 332,499 | -1.5% | -2.2% | -2.6% | -3.2% |
| Brands | 122,087 | 115,058 | 6.1% | 6.4% | 5.2% | 5.5% |
| Compounding Services (CS) |
313,498 | 236,323 | 32.7% | 36.1% | 29.0% | 32.3% |
| Group | |||||
|---|---|---|---|---|---|
| (€ '000) | FY '23 | FY '22 | ∆ | ||
| REBITDA | 148,954 | 130,724 | 13.9% | ||
| REBITDA margin | 19.5% | 19.1% | 40bps | ||
| Net EPS (€) | 0.97 | 0.96 | 1.0% | ||
| Free cash flow1 | 101,502 | 90,961 | 11.6% |
Outlook
Assuming no significant changes in current market conditions, we expect high-single digit organic revenue growth and an increase in profitability for 2024 year-on-year. Our medium-term objectives remain unchanged.
We remain committed to our disciplined acquisition strategy in all regions where we are active as part of Fagron's growth strategy.
Dividend
The Board of Directors will propose to the General Meeting of Shareholders a gross dividend of €0.30 per share for 2023.
Webcast
Rafael Padilla (CEO) and Karin de Jong (CFO) will discuss the 2023 full year results in a webcast starting at 9.30 AM CET. Registration to the webcast is available via this link. The presentation for the call will be available to download from the Fagron website around 8.00 AM CET.
1 Adjusted for one-offs. Including one-offs: €86.2 million
Business Review
EMEA
| (€ '000) | FY '23 | FY '22 | ∆ | ∆ CER | ∆ Organic | ∆ Organic CER |
|---|---|---|---|---|---|---|
| Essentials | 148,582 | 149,635 | -0.7% | -1.3% | -0.9% | -1.6% |
| Brands | 47,503 | 46,130 | 3.0% | 3.2% | -0.3% | -0.2% |
| CS | 88,826 | 80,643 | 10.1% | 12.7% | 8.3% | 10.6% |
| Total revenue | 284,912 | 276,409 | 3.1% | 3.5% | 1.9% | 2.2% |
| (€ '000) | FY '23 | FY '22 | ∆ | |
|---|---|---|---|---|
| REBITDA | 61,142 | 60,575 | 0.9% | |
| REBITDA margin | 21.5% | 21.9% | -40bps |
Revenue development in the EMEA region was driven by continued strong performance at Compounding Services partly offset by the performance at Brands and Essentials.
Brands and Essentials revenue development reflected the impact of a slowdown in the Polish market in the run up to the implementation of the new reimbursement system. Excluding this impact we saw solid demand across our markets as we benefit from our diversified footprint in the region. Our successful innovative product launches and improved product availability driven by our commitment to operational excellence further contributed to underlying performance.
The strong revenue growth in Compounding Services reflects solid performance across our markets driven by the enforcement of our registration activities, stock compounding and drug shortages in some countries.
After the strong improvement of the REBITDA margin in the first semester, on the back of operational benefits of the Polish repackaging facility and the pricing pass-through, the trend in the second half of the year reflected the low volumes in Poland in anticipation of the local regulatory changes.
As the Polish market adjusts to the new situation in 2024, we expect to minimize the impact of the new reimbursement system with strategic actions. Given our competitive and commercial strengths and resilient business model, we are confident about our positioning in the attractive Polish market.
| (€ '000) | FY '23 | FY '22 | ∆ | ∆ CER | ∆ Organic | ∆ Organic CER |
|---|---|---|---|---|---|---|
| Essentials | 112,767 | 112,923 | -0.1% | -2.8% | -0.1% | -2.8% |
| Brands | 52,870 | 46,544 | 13.6% | 12.8% | 13.6% | 12.8% |
| CS | 3,593 | 2,869 | 25.2% | 30.8% | 25.2% | 30.8% |
| Total revenue | 169,230 | 162,336 | 4.2% | 2.3% | 4.2% | 2.3% |
Latin America
| (€ '000) | FY '23 | FY '22 | ∆ |
|---|---|---|---|
| REBITDA | 28,003 | 28,885 | -3.1% |
| REBITDA margin | 16.5% | 17.8% | -130bps |
Revenue development in Latin America reflected growth in Brands and Compounding Services, slightly offset by the Essentials performance.
Essentials revenue development reflects our effort to maintain our market leadership in a heightened competitive environment, increasingly compensated by the strengthening customer demand in the second half of the year. Brands strong revenue development reflects the benefits of our broad product portfolio and product launches, evidencing the competitive advantage of our innovative power.
Compounding Services (Colombia) continued its strong revenue growth, driven by customer wins, increasing orders from existing customers and product launches. As market leader, we are promoting the development of personalized medicine in the country, particularly in dermatology.
As anticipated, the region's REBITDA and REBITDA margin showed the impact of our focus on maintaining market share in a heightened competitive environment. However, our sustained focus on executing our operational excellence programs resulted in an improved REBITDA margin in the second half of the year compared to the first half.
| (€ '000) | FY '23 | FY '22 | ∆ | ∆ CER | ∆ Organic | ∆ Organic CER |
|---|---|---|---|---|---|---|
| Essentials | 66,057 | 69,941 | -5.6% | -3.0% | -10.2% | -7.4% |
| Brands | 21,714 | 22,384 | -3.0% | -0.4% | -1.0% | 1.7% |
| CS | 221,079 | 152,810 | 44.7% | 48.6% | 39.9% | 43.8% |
| Total revenue | 308,850 | 245,136 | 26.0% | 29.4% | 22.0% | 25.5% |
North America
| (€ '000) | FY '23 | FY '22 | ∆ |
|---|---|---|---|
| REBITDA | 59,809 | 41,265 | 44.9% |
| REBITDA margin | 19.4% | 16.8% | 260bps |
Revenue growth in North America is reflecting Compounding Services' continuing strong performance, both at Fagron Sterile Services (FSS) and Anazao.
Organic revenue at the Brands and Essentials segment continued its recovery through the year following the completed consolidation of our repackaging activities at our Letco facility, and integration of sales forces and IT systems.
At Compounding Services, revenue prolonged its strong growth trajectory, driven by outstanding performance at both FSS (Wichita and Boston) and Anazao. Increasing orders from existing customers, new customer wins, and drug shortages supported the segment's performance. The combined run rate of the Wichita and Boston sterile outsourcing facilities was almost US\$165 million (annualized) at year-end. The Boston facility reached break-even in the fourth quarter as new licenses continue to come in. Investment in the Anazao site in Tampa is progressing as planned and the new facility is scheduled to become operational in 2024.
The REBITDA margin continued to improve as the integration of the Letco and Boston acquisition progressed, further supported by improved operational efficiency at our Wichita facility.
M&A Developments
The integration of our acquisitions is progressing in line with expectations. In January 2024, we completed the acquisition of Parma Produkt in Hungary. In February, we acquired London Specialist Pharmacy, allowing us access to the compounding market in the United Kingdom and further diversifying our EMEA footprint.
Quality and ESG Developments
We remain committed to ensuring the highest standards of quality across our business, and over the course of 2023, we were audited at 12 facilities globally resulting in minor observations and no warning letters. Our focus on quality remains a key competitive advantage and we will continue to invest further in driving best practices across all our operations.
| Social and Governance indicators | 2023 | 2022 |
|---|---|---|
| Units of compounded medicine supplied (in million) | 18.8 | 11.2 |
| Class 1 recall: may cause serious health consequences | 0 | 1 |
| Class 2 recall: may cause temporary or reversible health consequences | 5 | 7 |
| Class 3 recall: health consequences unlikely | 10 | 3 |
| Women in management positions | 40.4% | 40.6% |
In 2023, Fagron made further progress with our ESG targets. We made good progress on our greenhouse gas intensity reduction target by realizing a 24.4% reduction compared to 2019. In October 2023, the Science Based Targets initiative (SBTi) approved our near-term science-based emission reduction targets to meet the goals of the Paris Agreement of limiting global warming to 1.5°C.
| Climate impact | FY '23 | Target2 | Unit |
|---|---|---|---|
| Carbon footprint intensity (location based)3 | -24.4% | -30% tCO2 eq/€m revenue at CER | |
| Carbon footprint reduction (market based)4 | +1% | -42% tCO2 eq |
2 Carbon footprint intensity vs financial year 2019, carbon footprint reduction vs financial year 2021.
3 Scope 1, 2 and 3 business travel
4 Scope 1 and 2
Financial Review
Income statement
| (€ '000) | FY '23 | FY '22 | Δ |
|---|---|---|---|
| Net revenue | 762,991 | 683,881 | 11.6% |
| Gross margin | 461,322 | 402,586 | 14.6% |
| As % of net revenue | 60.5% | 58.9% | 160bps |
| Operating expenses | 309,164 | 270,062 | 14.5% |
| As % of net revenue | 40.5% | 39.5% | 100bps |
| Share-based payments and LTI | 3,204 | 1,799 | 78.0% |
| EBITDA before non-recurrent result | 148,954 | 130,724 | 13.9% |
| As % of net revenue | 19.5% | 19.1% | 40bps |
| Non-recurrent result | -1,010 | 2,665 | -137.9% |
| EBITDA | 147,944 | 133,389 | 10.9% |
| As % of net revenue | 19.4% | 19.5% | -10bps |
| Depreciation and amortization | 39,311 | 35,480 | 10.8% |
| EBIT | 108,633 | 97,909 | 11.0% |
| As % of net revenue | 14.2% | 14.3% | -10bps |
| Financial result excl. hedge | -20,473 | -14,909 | -37.3% |
| Revaluation hedge instrument (non-cash) | -3,714 | 4,769 | -177.9% |
| Financial result | -24,187 | -10,140 | -138.5% |
| Profit before income tax | 84,445 | 87,769 | -3.8% |
| Taxes | -13,401 | -17,703 | 24.3% |
| Net profit (loss) | 71,044 | 70,066 | 1.4% |
| Net profit (loss) per share (€) | 0.97 | 0.96 | 1.0% |
| Average number of outstanding shares | 72,999,583 | 72,874,673 | 0.2% |
| (€ '000) | H2 '23 | H2 '22 | Δ |
|---|---|---|---|
| Net revenue | 391,418 | 355,316 | 10.2% |
| Gross margin | 235,721 | 212,015 | 11.2% |
| As % of net revenue | 60.2% | 59.7% | 50bps |
| Operating expenses | 157,343 | 143,892 | 9.3% |
| As % of net revenue | 40.2% | 40.5% | -30bps |
| Share-based payments and LTI | 1,608 | 720 | 123.4% |
| EBITDA before non-recurrent result | 76,771 | 67,402 | 13.9% |
| As % of net revenue | 19.6% | 19.0% | 60bps |
| Non-recurrent result | -513 | 3,465 | -114.8% |
| EBITDA | 76,258 | 70,868 | 7.6% |
| As % of net revenue | 19.5% | 19.9% | -40bps |
| Depreciation and amortization | 20,353 | 19,760 | 3.0% |
| EBIT | 55,904 | 51,108 | 9.4% |
| As % of net revenue | 14.3% | 14.4% | -10bps |
| Financial result excl. hedge | -11,287 | -8,870 | -27.2% |
| Revaluation hedge instrument (non-cash) | -2,355 | 916 | -357.0% |
| Financial result | -13,641 | -7,954 | -71.5% |
| Profit before income tax | 42,263 | 43,154 | -2.1% |
| Taxes | -4,500 | -8,387 | 46.3% |
|---|---|---|---|
| Net profit (loss) | 37,763 | 34,767 | 8.6% |
| Net profit (loss) per share (€) | 0.52 | 0.48 | 8.3% |
| Average number of outstanding shares | 73,032,701 | 72,889,027 | 0.2% |
Consolidated revenue increased by 11.6% (12.5% at CER) compared to 2022 to €763.0 million. Organic revenue growth was 9.6% (10.5% at CER) compared to 2022.
Gross margin increased by 14.6% to €461.3 million. Gross margin as a percentage of revenue increased 160 basis points compared to 2022 to 60.5%.
REBITDA (EBITDA before non-recurring result) increased by 13.9% (15.1% at CER) compared to the 2022 to €149.0 million. REBITDA margin increased 40 basis points compared to 2022 to 19.5%. The non-recurring result amounted to -€1.0 million and related mainly to restructuring costs compensated by release of earn-outs in EMEA. EBITDA increased by 10.9% compared to 2022 to €147.9 million.
Depreciation and amortization increased by 10.8% compared to 2022 to €39.3 million.
EBIT increased by 11.0% compared to 2022 to €108.6 million. EBIT margin slightly decreased with 10 basis points compared to 2022 to 14.2%.
Profit before income tax decreased by 3.8% compared to 2022 to €84.4 million. The effective tax rate as a percentage of profit before income taxes was 15.9% compared to 20.2% in 2022. The effective cash tax rate was 22.2% compared to 19.9% in 2022.
Net profit increased by 1.4% compared to 2022 to €71.0 million. Earnings per share increased by 1.0% compared to 2022 to €0.97.
| (€ '000) | 31-12-2023 | 31-12-2022 |
|---|---|---|
| Intangible assets | 482,921 | 463,401 |
| Property, plant, and equipment | 147,935 | 143,596 |
| Deferred tax assets | 28,904 | 24,785 |
| Financial assets | 4,199 | 4,210 |
| Financial instruments | 3,300 | 13,277 |
| Other non-current fixed assets | 4,579 | 3,731 |
| Operational working capital | 71,058 | 71,203 |
| Other working capital | -33,373 | -30,347 |
| Equity | 467,627 | 410,518 |
| Provisions and pension obligations | 4,588 | 4,763 |
| Financial instruments | 371 | 181 |
| Deferred tax liabilities | 1,976 | 4,352 |
| Net financial debt | 233,735 | 274,042 |
Balance sheet
Operating working capital as a percentage of annualized revenue amounted to 9.3%, a decrease of 90 basis points compared to 2022, mostly driven by focus on inventory management and improved collection.
Net financial debt decreased by €40.3 million to €233.7 million as of 31 December 2023. The net financial debt/REBITDA ratio was 1.4x at 31 December 2023 compared to 1.9x at both 30 June 2023 and 31 December 2022.
Net operational capex increased by 108.0% compared to 2022 to €38.5 million (5.0% of revenue). Excluding the one-off investments in North America and the acquisition of registration and exclusive license and distribution rights in EMEA, maintenance capex was 3.0% of revenue, in line with our regular 3 to 3.5% level.
Adjusted for the above-mentioned one-off capex, free cash flow increased by 11.6% compared to 2022 to €101.5 million.
Financial calendar 2024
11 April 2024 Trading update first quarter 2024 1 August 2024 Half year results 2024 10 October 2024 Trading update third quarter 2024
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.
Further information
Karen Berg Global Investor Relations Manager Tel. +31 6 53 44 91 99 [email protected]
About Fagron
Fagron is a leading global company active in pharmaceutical compounding, focusing on delivering personalized medicine to hospitals, pharmacies, clinics, and patients in more than 30 countries around the world.
The 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.
Consolidated income statement
| (€ '000) | 2023 | 2022 |
|---|---|---|
| Operating income | 767,193 | 695,346 |
| Revenue | 762,991 | 683,881 |
| Other operating income5 | 4,202 | 11,466 |
| Operating expenses | 658,560 | 597,437 |
| Trade goods | 301,670 | 281,374 |
| Services and other goods | 128,709 | 116,342 |
| Employee benefit expenses | 186,512 | 158,130 |
| Depreciation and amortization | 39,311 | 35,480 |
| Other operating expenses | 2,358 | 6,111 |
| Operating profit | 108,633 | 97,909 |
| Financial income | 5,324 | 8,833 |
| Financial expenses | -29,512 | -18,973 |
| Profit before tax | 84,445 | 87,769 |
| Taxes | 13,401 | 17,703 |
| Net profit (loss) | 71,044 | 70,066 |
| Attributable to: | ||
| Shareholders of the company (net profit) | 70,547 | 69,612 |
| Non-controlling interest(s) | 497 | 454 |
| Profit (loss) per share attributable to shareholders during the period | ||
| Profit (loss) per share (€) | 0.97 | 0.96 |
| Diluted profit (loss) per share (€) | 0.97 | 0.96 |
5 The decrease relates mainly to the badwill of the 2022 acquisition of the 503B facility in Boston (€5.5 million).
Consolidated statement of comprehensive income
| (€ '000) | 2023 | 2022 |
|---|---|---|
| Net profit (loss) for the financial year | 71,044 | 70,066 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Remeasurements of post-employment benefit obligations | 253 | 1,964 |
| Tax relating to items that will not be reclassified | -63 | -491 |
| Items that may be subsequently reclassified to profit or loss | ||
| Interest hedge | -438 | 7,384 |
| Currency translation differences | 2,997 | 18,468 |
| Other comprehensive income for the year net of tax | 2,750 | 27,325 |
| Total comprehensive income for the year | 73,794 | 97,391 |
| Attributable to: | ||
| Shareholders | 73,297 | 96,936 |
| Non-controlling interests | 497 | 454 |
Consolidated statement of financial position
| (€ '000) | 2023 | 2022 |
|---|---|---|
| Non-current assets | 671,053 | 653,000 |
| Goodwill | 434,361 | 429,768 |
| Intangible assets | 48,560 | 33,633 |
| Property, plant, and equipment | 109,825 | 104,086 |
| Leasing and similar rights | 38,110 | 39,510 |
| Financial assets | 4,199 | 4,210 |
| Financial instruments | 2,515 | 13,277 |
| Other non-current fixed assets | 4,579 | 3,731 |
| Deferred tax assets | 28,904 | 24,785 |
| Current assets | 335,901 | 318,010 |
| Inventories | 113,938 | 108,337 |
| Trade receivables | 62,052 | 60,722 |
| Financial instruments | 4,268 | 451 |
| Other receivables | 22,636 | 23,163 |
| Cash and cash equivalents | 133,008 | 125,337 |
| Total assets | 1,006,954 | 971,010 |
| Equity | 467,627 | 410,518 |
| Shareholders' equity (parent) | 463,754 | 404,541 |
| Non-controlling interests | 3,872 | 5,977 |
| Non-current liabilities | 364,070 | 389,484 |
| Provisions | 1,993 | 2,024 |
| Pension obligations | 2,596 | 2,739 |
| Deferred tax liabilities | 1,976 | 4,352 |
| Debt | 325,039 | 346,673 |
| Financial instruments | 440 | 0 |
| Lease liabilities | 32,026 | 33,697 |
| Current liabilities | 175,258 | 171,009 |
| Debt | 0 | 9,461 |
| Lease liabilities | 9,678 | 9,548 |
| Trade payables | 104,932 | 97,856 |
| Tax liabilities for the current year | 10,129 | 7,993 |
| Other current taxes, remuneration and social security | 33,854 | 30,777 |
| Other current payables | 16,294 | 15,191 |
| Financial instruments | 371 | 181 |
| Total liabilities | 539,328 | 560,493 |
| Total equity and liabilities | 1,006,954 | 971,010 |
Consolidated statement of changes in equity
| (€ '000) | Share capital & share |
Other reserves |
Cash flow hedge reserve |
Treasury shares |
Retained earnings |
Total | Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|
| Balance as of 1 January 2022 |
520,785 | -277,154 | -18,823 | 95,297 | 320,105 | 5,361 | 325,466 | |
| Profit (loss) for the period |
69,612 | 69,612 | 454 | 70,066 | ||||
| Other comprehensive income |
19,780 | 7,384 | 27,163 | 161 | 27,325 | |||
| Total comprehensive income for the period |
19,780 | 7,384 | 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 | -255,575 | 7,384 | -18,823 | 150,317 | 404,541 | 5,977 | 410,518 |
| Profit (loss) for the period |
-3,583 | 74,130 | 70,547 | 497 | 71,044 | |||
| Other comprehensive income |
3,404 | -438 | 2,967 | -217 | 2,750 | |||
| Total comprehensive income for the |
||||||||
| period | 3,404 | -4,021 | 74,130 | 73,514 | 280 | 73,794 | ||
| Capital increase | 3,293 | 3,293 | 3,293 | |||||
| Treasury shares | -2,257 | -2,257 | -2,257 | |||||
| Declared dividends | -18,175 | -18,175 | -225 | -18,400 | ||||
| Share-based payments |
2,429 | 2,429 | 2,429 | |||||
| Change in non controlling interests |
409 | 409 | -2,160 | -1,751 | ||||
| Balance as of 31 December 2023 |
524,531 | -249,333 | 3,363 | -21,080 | 206,273 | 463,754 | 3,872 | 467,627 |
Consolidated cash flow statement
| (€ '000) | 2023 | 2022 |
|---|---|---|
| Operating activities | ||
| Profit before taxes from continued operations | 84,445 | 87,769 |
| Taxes paid | -18,762 | -17,454 |
| Adjustments for financial items | 24,188 | 10,140 |
| Total adjustments for non-cash items | 41,069 | 31,143 |
| Total changes in working capital | -6,306 | -2,140 |
| Total cash flow from operating activities | 124,633 | 109,458 |
| Investment activities | ||
| Capital expenditure | -38,473 | -18,497 |
| Investments in existing shareholdings (subsequent payments) and in new | ||
| holdings | -6,283 | -53,997 |
| Proceeds from sold shareholdings | 0 | 3,226 |
| Total cash flow from investment activities | -44,757 | -69,269 |
| Financing activities | ||
| Capital increase | 3,293 | 453 |
| Purchase own shares | -2,257 | 0 |
| Dividends | -18,265 | -14,571 |
| New debt | 0 | 135,000 |
| Reimbursement of debt | -28,000 | -85,727 |
| Payment of lease obligations | -11,797 | -9,396 |
| Interest received | 5,324 | 3,569 |
| Interest paid | -22,578 | -15,476 |
| Total cash flow from financing activities | -74,279 | 13,852 |
| Total net cash flow for the period | 5,598 | 54,042 |
| Cash and cash equivalents – start of period | 125,337 | 70,646 |
| Gains (losses) from currency translation differences | 2,072 | 649 |
| Cash and cash equivalents – end of period | 133,008 | 125,337 |
| Changes in cash and cash equivalents | 5,598 | 54,042 |
Development net financial debt
| (€ '000) | |
|---|---|
| Net financial debt on 31 December 2022 | 274,042 |
| Operational cash flow | -124,633 |
| Capital increases | -3,293 |
| Purchase own shares | 2,257 |
| Acquisitions and subsequent payments for acquisitions | 6,388 |
| Capital expenditure | 38,473 |
| Dividends paid | 18,265 |
| Net interests | 17,253 |
| Exchange rate differences | -5,090 |
| Impact IFRS 16 | 10,074 |
| Net financial debt on 31 December 2023 | 233,735 |
Alternative performance indicators
| (€ '000) | 2023 | 2022 |
|---|---|---|
| Operating profit (EBIT) | 108,633 | 97,909 |
| Depreciation and amortization | 39,311 | 35,480 |
| EBITDA | 147,944 | 133,389 |
| Non-recurring result6 | 1,010 | -2,665 |
| REBITDA | 148,954 | 130,724 |
| Net financial debt | ||
| Non-current financial debt | 325,039 | 346,673 |
| Non-current lease liabilities | 32,026 | 33,697 |
| Current financial debt | 0 | 9,461 |
| Current lease liabilities | 9,678 | 9,548 |
| Cash and cash equivalents | 133,008 | 125,337 |
| Total net financial debt | 233,735 | 274,042 |
| Inventories | 113,938 | 108,337 |
| Trade receivables | 62,052 | 60,722 |
| Trade payables | -104,932 | -97,856 |
| Operational working capital | 71,058 | 71,203 |
| Total cash flow from operating activities | 124,633 | 109,458 |
| Capital expenditure | -38,473 | -18,497 |
| Free cash flow | 86,160 | 90,961 |
6 Including the badwill of the 2022 acquisition of the 503B facility in Boston (€5.5 million).