STADA Arzneimittel AG - Earnings Release 2018

News Details

Corporate | 9 August 2018 07:30

STADA Arzneimittel AG: STADA’s business development in the first six months of 2018 as expected

DGAP-News: STADA Arzneimittel AG / Key word(s): Half Year Results

09.08.2018 / 07:30

The issuer is solely responsible for the content of this announcement.

– Increase in adjusted Group sales – driven by both Generics and Branded Products

– Double-digit increase in reported and adjusted EBITDA – considerable margin improvement in the Generics segment

– Significant growth in reported and adjusted net income

– Positive development of cash flow from operating activities

STADA Group key figures


	Q2/2018	Q2/2017	+/-	H1/2018	H1/2017	+/-
Reported Group sales	EUR579.4 million	EUR576.9 million	0%	EUR1,137.5 million	EUR1,143.2 million	-1%
*Adjusted Group sales*	EUR598.1 million	EUR562.5 million	+6%	EUR1,171.6 million	EUR1,114.5 million	+5%
Reported EBITDA	EUR142.1 million	EUR112.4 million	+26%	EUR260.6 million	EUR220.9 million	+18%
*Adjusted EBITDA*	EUR143.3 million	EUR129.2 million	+11%	EUR261.7 million	EUR237.7 million	+10%
Reported net income	EUR108.6 million	EUR41.1 million	>100%	EUR165.3 million	EUR90.3 million	+83%
*Adjusted net income*	EUR88.8 million	EUR60.8 million	+46%	EUR149.7 million	EUR114.1 million	+31%
Reported earnings per share	EUR1.75	EUR0.66	>100%	EUR2.66	EUR1.45	+83%
*Adjusted earnings per share*	EUR1.43	EUR0.97	+46%	EUR2.40	EUR1.83	+31%

“In the first six months of 2018, STADA developed in line with our expectations. In addition to double-digit increase in our key earnings figures – including significant net income growth – we were able to considerably improve the margin of our Generics segment. We also pushed ahead with our strategic realignment, implementing steps such as acquiring the EMEA rights for Nizoral dandruff treatment shampoo and taking over distribution responsibility for our strongest-selling product APO-Go in Germany, with Scandinavia to follow shortly. As such, we remain on track to reach our targets for 2018,” STADA CEO Dr. Claudio Albrecht strikes a positive balance.

Slight decrease in reported Group sales – increase in adjusted Group sales

Reported Group sales decreased by 1 percent in the first six months of 2018 to EUR1,137.5 million. Sales of STADA Vietnam J.V. Co. Ltd. are no longer included. Group sales adjusted for portfolio and currency effects increased by 5 percent to EUR1,171.6 million.

Increase in reported and adjusted EBITDA

Reported EBITDA increased by 18 percent in the reporting period to EUR260.6 million, while adjusted EBITDA rose by 10 percent to EUR261.7 million.

Significant increase in reported and adjusted net income

Reported net income grew by 83 percent in the first six months of the current financial year, rising to EUR165.3 million, while adjusted net income increased by 31 percent to EUR149.7 million.

Increase in cash flow from operating activities

Cash flow from operating activities increased to EUR95.0 million in the first six months of 2018

(1-6/2017: EUR89.5 million). Following the most recent investments, free cash flow totaled EUR-99.6 million (1-6/2017: EUR16.9 million). Free cash flow adjusted for payments for significant investments or acquisitions and proceeds from significant disposals increased to EUR61.6 million (1-6/2017: EUR43.5 million).

Improved equity ratio

The equity ratio as of June 30, 2018, improved to 34.3 percent (December 31, 2017: 31.4 percent). Net debt as of June 30, 2018, totaled EUR1,165.5 million, including a shareholders’ loan (December 31, 2017: EUR1,054.7 million).

STADA key figures: Generics segmen* t***


	Q2/2018	Q2/2017	+/-	H1/2018	H1/2017	+/-
Reported sales	EUR345.5 million	EUR348.5 million	-1%	EUR672.4 million	EUR674.4 million	0%
Adjusted sales	EUR351.8 million	EUR341.6 million	+3%	EUR684.7 million	EUR660.6 million	+4%
Adjusted EBITDA	EUR101.3 million	EUR81.3 million	+25%	EUR183.6 million	EUR150.7 million	+22%
Adjusted EBITDA margin	29.3%	23.3%		27.3%	22.3%

**Sales and earnings development of the Generics segment****

In the first six months of 2018, reported sales of the Generics segment totaled

EUR672.4 million and were more or less on a par with the corresponding period of the previous year. The figure no longer includes generics sales of STADA Vietnam J.V. Co. Ltd. Sales adjusted for portfolio and currency effects increased by 4 percent to EUR684.7 million. Overall, the Generics segment accounted for 59.1 percent of Group sales in the reporting period (1-6/2017: 59.0 percent). Adjusted EBITDA increased by 22 percent to EUR183.6 million. The adjusted EBITDA margin was 27.3 percent (1-6/2017: 22.3 percent).

**STADA key figures: Branded Products segment****


	Q2/2018	Q2/2017	+/-	H1/2018	H1/2017	+/-
Reported sales	EUR233.9 million	EUR228.4 million	+2%	EUR465.1 million	EUR468.8 million	-1%
Adjusted sales	EUR246.3 million	EUR220.9 million	+11%	EUR486.9 million	EUR453.9 million	+7%
Adjusted EBITDA	EUR56.9 million	EUR64.4 million	-12%	EUR120.0 million	EUR121.4 million	-1%
Adjusted EBITDA margin	24.3%	28.2%		25.8%	25.9%

**Sales and earnings development of the Branded Products segment****

In the first six months of 2018, reported sales of the Branded Products segment decreased by 1 percent to EUR465.1 million. The figure no longer includes branded product sales of STADA Vietnam J.V. Co. Ltd. Sales adjusted for portfolio and currency effects increased by 7 percent to EUR486.9 million. Overall, the Branded Products segment accounted for 40.9 percent of Group sales in the reporting period (1-6/2017: 41.0 percent). Adjusted EBITDA decreased by 1 percent to EUR120.0 million. The adjusted EBITDA margin was 25.8 percent (1-6/2017: 25.9 percent).

**STADA reconciliation of special items in the second quarter of 2018****


in EUR million 1	Second quarter 2018, reported	Impairment/write-ups of non-current assets	Effects of purchase price allocations and product acquisitions 2	Severance payments	Change of tax status of STADA Arzneimittel AG	Second quarter 2018, adjusted
Earnings before interest, taxes, depreciation and amortization (EBITDA)	142.1	—	-0.2	1.4	—	143.3
Balance from depreciation/amortization and impairment/write-ups of intangible assets (including goodwill), property, plant and equipment, and financial assets	34.2	-4.8	-3.2	—	—	26.1
Financial income and expenses	-9.7	—	—	—	—	-9.7
Income taxes	-11.7	-0.3	0.5	—	28.9	17.5
Result distributable to non-controlling shareholders	1.3	—	-0.1	—	—	1.2
Result distributable to shareholders of STADA Arzneimittel AG (net income)	108.6	5.1	2.6	1.4	-28.9	88.8

1 Due to the presentation in EUR million, there may be rounding differences in the tables.

2 Relates to additional depreciation/amortization and other valuation effects resulting from purchase price allocations and significant product acquisitions, taking financial year 2013 as basis.

**STADA reconciliation of special items in the first six months of 2018****


in EUR million 1	First six months 2018, reported	Impairment/write-ups of non-current assets	Effects of purchase price allocations and product acquisitions 2	Severance payments	Change of tax status of STADA Arzneimittel AG	First six months 2018, adjusted
Earnings before interest, taxes, depreciation and amortization (EBITDA)	260.6	—	-0.3	1.4	—	261.7
Balance from depreciation/amortization and impairment/write-ups of intangible assets (including goodwill), property, plant and equipment, and financial assets	64.5	-6.6	-6.5	—	—	51.4
Financial income and expenses	-17.8	—	—	—	—	-17.8
Income taxes	10.7	0.2	1.0	—	28.9	40.8
Result distributable to non-controlling shareholders	2.3	—	-0.3	—	—	2.0
Result distributable to shareholders of STADA Arzneimittel AG (net income)	165.3	6.4	5.5	1.4	-28.9	149.7

1 Due to the presentation in EUR million, there may be rounding differences in the tables.

2 Relates to additional depreciation/amortization and other valuation effects resulting from purchase price allocations and significant product acquisitions, taking financial year 2013 as basis.

*About STADA Arzneimittel AG***

STADA Arzneimittel AG is a publicly-listed company with headquarters in Bad Vilbel, Germany. The company focuses on a three-pillar strategy consisting of generics, non-prescription OTC products and specialty pharmaceuticals, biosimilars in particular. Worldwide, STADA is represented in about 30 countries with roughly 50 subsidiaries. Branded products such as Grippostad and Ladival are among the highest selling in their product categories in Germany. In financial year 2017, STADA achieved adjusted Group sales of EUR2,255.3 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR433.9 million and adjusted net income of EUR195.6 million. As of December 31, 2017, STADA employed 10,176 people worldwide.

Additional information for journalists:

STADA Arzneimittel AG / Media Relations / Stadastrasse 2-18 / 61118 Bad Vilbel – Germany /

Phone: +49 (0) 6101 603-165 / Fax: +49 (0) 6101 603-215 / E-Mail: [email protected]

Or visit us on the Internet at www.stada.com/press

Additional information for capital market participants:

STADA Arzneimittel AG / Investor & Creditor Relations / Stadastrasse 2-18 / 61118 Bad Vilbel – Germany /

Phone: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-215 / E-mail: [email protected]

Or visit us on the Internet at www.stada.com/investor-relations

09.08.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	STADA Arzneimittel AG
	Stadastraße 2-18
	61118 Bad Vilbel
	Germany
Phone:	+49 (0)6101 603- 113
Fax:	+49 (0)6101 603- 506
E-mail:	[email protected]
Internet:	www.stada.de
ISIN:	DE0007251803
WKN:	725180
Listed:	Regulated Market in Dusseldorf, Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange