STADA Arzneimittel AG - Earnings Release 2018

News Details

Corporate | 3 May 2018 07:30

STADA Arzneimittel AG: STADA with solid business development in the first quarter of 2018

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

03.05.2018 / 07:30

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

– STADA had a good start to the year

– Both generics and branded products contribute to higher adjusted Group sales

– Significant margin improvement in both segments

– Transformation programme has already yielded positive results through cost savings in purchase and efficiencies in administration

– Double-digit growth of net income

– Increase in cash flow and improvement in net working capital

STADA key figures: Group


	Q1/2018	Q1/2017	+/-
Reported Group sales	EUR558.1 million	EUR566.3 million	-1%
*Adjusted Group sales*	EUR573.4 million	EUR552.0 million	+4%
Reported EBITDA	EUR118.6 million	EUR108.6 million	+9%
*Adjusted EBITDA*	EUR118.4 million	EUR108.5 million	+9%
Reported net income	EUR56.7 million	EUR49.2 million	+15%
*Adjusted net income*	EUR60.9 million	EUR53.3 million	+14%
Reported earnings per share	EUR0.91	EUR0.79	+15%
*Adjusted earnings per share*	EUR0.98	EUR0.86	+14%

According to Dr. Claudio Albrecht, CEO: “We got off to a good start in financial year 2018. The substantial improvements in profitability in both the Generics and Branded Products segments and the marked increase in net income show that the measures implemented in the transformation process are paying off. Overall, we are on track to meet the growth targets we have set for 2018.”

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

In the reporting period, reported Group sales declined by 1 percent to EUR558.1 million. Sales generated by STADA Vietnam J.V. Co. Ltd. were no longer included. Group sales adjusted for portfolio and currency effects increased by 4 percent to EUR573.4 million. Both segments contributed to this growth.

Marked increase in both reported and adjusted EBITDA

Reported EBITDA increased by 9 percent to EUR118.6 million in the first quarter of 2018. Adjusted EBITDA grew by 9 percent to EUR118.4 million.

Significant increase in both reported and adjusted net income

Reported net income increased by 15 percent to EUR56.7 million in the reporting period. Adjusted net income grew by 14 percent to EUR60.9 million.

Increase in cash flow – improvement in net working capital

Cash flow from operating activities improved to EUR80.6 million in the first three months of 2018 (1-3/2017: EUR59.5 million). Free cash flow increased to EUR51.9 million (1-3/2017: EUR25.8 million). Free cash flow adjusted for payments for significant investments or acquisitions and proceeds from significant disposals increased to EUR61.5 million (1-3/2017: EUR39.7 million). Net working capital improved from EUR678.8 million as of December 31, 2017, to EUR649.9 million as of March 31, 2018.

Reduction in net debt

As of March 31, 2018, net debt was reduced to EUR1,006.5 million (December 31, 2017: EUR1,054.7 million). The net debt to adjusted EBITDA ratio (LTM; before on a full-year basis/on linear extrapolation) improved in the first quarter of 2018 to 2.3 (1-3/2017: 2.6) including the funding provided by Nidda Healthcare Holding GmbH.

STADA key figures: Generics segmen* t***


	Q1/2018	Q1/2017	+/-
Reported sales	EUR326.8 million	EUR325.9 million	0%
Adjusted sales**	EUR332.8 million	EUR319.0 million	+4%
Adjusted EBITDA**	EUR82.3 million	EUR69.4 million	+19%
Adjusted EBITDA margin**	25.2%	21.3%

**Sales development: Generics****

Reported sales in the Generics segment in the first quarter of 2018 were more or less on a par with the previous-year quarter at EUR326.8 million. Sales generated by STADA Vietnam J.V. Co. Ltd. were no longer included.

Sales adjusted for portfolio and currency effects grew by 4 percent to EUR332.8 million.

Overall, the Generics segment accounted for 58.6 percent of Group sales (1-3/2017: 57.5 percent).

**EBITDA and margin development: Generics****

Adjusted EBITDA in the Generics segment increased by 19 percent to EUR82.3 million in the first three months of 2018.

The adjusted EBITDA margin was 25.2 percent (1-3/2017: 21.3 percent).

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


	Q1/2018	Q1/2017	+/-
Reported sales**	EUR231.3 million	EUR240.4 million	-4%
Adjusted sales**	EUR240.6 million	EUR233.0 million	+3%
Adjusted EBITDA**	EUR63.1 million	EUR57.0 million	+11%
Adjusted EBITDA margin**	27.3%	23.7%

**Sales development: Branded Products****

Reported sales in the Branded Products segment declined by 4 percent to EUR231.3 million in the first quarter of 2018.

Sales adjusted for portfolio and currency effects grew by 3 percent to EUR240.6 million.

Overall, the Branded Products segment accounted for 41.4 percent of Group sales

(1-3/2017: 42.5 percent).

**EBITDA and margin development: Branded Products****

Adjusted EBITDA in the Branded Products segment increased by 11 percent to EUR63.1 million in the first three months of 2018.

The adjusted EBITDA margin in the Branded Products segment was 27.3 percent

(1-3/2017: 23.7 percent).

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


(EUR million 1 )	Reported first quarter of 2018	Impairment/write-ups on non-current assets	Effects from purchase price allocations and product acquisitions 2	Adjusted first quarter of 2018
Earnings before interest, taxes, depreciation and amortization (EBITDA)	118.6	—	-0.2	*118.4*
Balance from depreciation/amortization and impairment/write-ups for intangible assets (including goodwill), property, plant and equipment and financial assets	30.4	-1.8	-3.3	*25.3*
Financial income and expenses	-8.1	—	—	*-8.1*
Income taxes	22.4	0.5	0.4	*23.3*
Result attributable to non-controlling shareholders	1.0	—	-0.1	*0.9*
Result attributable to the shareholders of STADA Arzneimittel AG (net income)	56.7	1.3	2.9	*60.9*

1 Due to the presentation in EUR million, deviations may appear in the tables due to rounding.

2 Concerns additional depreciation/amortization and other valuation effects due to purchase price allocations and significant product

acquisitions compared with the 2013 financial year as the base level.

Contact:

STADA Arzneimittel AG / Investor Relations / Leslie Iltgen / Stadastraße 2-18 / 61118 Bad Vilbel – Germany Tel.: +49 (0) 6101 603-173 / Fax: +49 (0) 6101 603-215 / E-mail: [email protected]

Or visit us in the Internet at www.stada.com .

03.05.2018 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, ,
Indices:	MDAX
Listed:	Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange