H1 2024 Results - Focus-27 strategic plan on track with timely
execution of the operational roadmap
| |
Press Release
Paris, 30th July 2024
|
- Net Sales down 9.6%
year-on-year – Core EBITDA margin at 10.6%
- Accelerated commercial
momentum with clients other than Sanofi, with Net Sales up 2.9%,
excluding the Brindisi site, where production was temporarily
suspended
- Enhanced effectiveness
across the entire organization, with sizeable improvements in
industrial efficiencies
- €10 million Free Cash Flow
before financing, driven by strengthened financial
discipline
- FY 2024 guidance
confirmed
" Our H1 actions set the foundations of our
more agile, streamlined, and value-creating model. Over the past
months, with the entire organization's support, we have made
significant progress in deploying the four strategic pillars of our
operational roadmap. Thanks to a comprehensive mitigation plan, we
will resume shipment and production in Brindisi in the coming
weeks." said Ludwig de Mot, Chief Executive
Officer of EUROAPI. "Confident in the collective
success of our plan, we are in advanced discussions with our
stakeholders to finalize the financing of FOCUS-27 in the coming
weeks, which will pave the way for long-term profitable
growth.”
€448.7 million in Net Sales, down by
9.6%1, shaped
by the strong decrease in volumes from Sanofi and the suspension of
production in Brindisi, which overshadowed the positive
momentum of sales to clients other than Sanofi
- Brindisi
GMP license reactivated mid-July; shipments and production
to restart gradually during Q3 2024
-
Signature of a major CMO commercial phase contract
with a global animal health company and a development and
manufacturing agreement with Priothera, a biotechnology
company specializing in oncology
€47.6 million Core EBITDA, with a 10.6%
Core EBITDA margin, down from 12.6% in H1 2023. Price
increases and product mix, industrial efficiencies, and the impact
of the revised commercial contractual clauses with Sanofi over the
period partially offset the unfavorable fixed-cost absorption.
€(1.4) million EBITDA, including €47.2 million exceptional
costs related to the implementation of FOCUS-27.
€(170.2) million Net Debt
compared to €(171.0) million at the end of December 2023, with
€10.0 million Free Cash Flow before
financing, compared to €(111.2) million for the same
period last year, driven notably by
- Controlled CAPEX
(€61.3 million, of which 56% dedicated to growth)
- Improved
Operating Working Capital thanks to a rigorous inventory
reduction program and better cash collection
€(34.8) million Net income,
compared to €62.8 million in H1 2023
H1-2024 Key figures
|
(in € millions) |
H1-2024 |
H1-2023 |
|
Net Sales |
448.7 |
496.6 |
|
Year-on-year change in % |
-9.6% |
+2.6% |
|
Gross profit |
98.0 |
97.0 |
|
Gross Profit Margin |
21.8% |
19.5% |
|
EBITDA |
(1.4) |
52.1 |
|
Core EBITDA |
47.6 |
62.5 |
|
Core EBITDA Margin |
10.6% |
12.6% |
|
Net Income |
(34.8) |
62.8 |
|
Basic EPS (in euros) |
(0.37) |
0.67 |
2024 outlook confirmed
- Between
8% and 11% decrease in 2024 Net Sales compared to 2023 on
a comparable basis, with a second-half performance slightly
exceeding that of the first half due to a phasing impact in
CDMO.
- Core
EBITDA margin objective expected between 4% and 7%. The
positive impact in H1 of the revised contractual clauses with
Sanofi will be lower in the second half.
FOCUS-27 plan in action
The execution of FOCUS-27 is on track, with
several initiatives launched during the first half, and the
discussions with the Revolving Credit Facility banking syndicate to
finalize the financing announced on June 26, 2024, are in the
advanced stage.
- Streamlined value-added
portfolio
- List of the discontinued 13 APIs
communicated to our clients; phase-out roadmap almost
completed
- Accelerated
momentum in Opiates, prompted by improving competitive
positions
- Focused CDMO offer
- Solid and
qualitative new late-stage projects with 3 marketed small molecules
for large and mid-size pharma and food companies (including GMP
intermediates).
- Increasing
momentum in large molecules, with 5 early-stage projects in H1,
mainly from large pharma companies, including 4 promising new
oligonucleotides and 1 peptide-PMO conjugate project.
- Rationalized industrial
footprint
- Ramp down of workshops initiated in
Frankfurt (9 APIs to be discontinued), and Vertolaye (2 APIs to be
discontinued)
- Inventory reduction program on
track
- Haverhill
divestment process well advanced; completion expected in 2025
- Organizational
transformation
- Headcount reduction plan initiated
in Haverhill following the decrease in volumes of Sevelamer
- Continued enhancement of the
management teams across the group, including the reorganization of
the Executive leadership team.
H1-2024 Net Sales
EUROAPI H1-2024 Net Sales reached
€448.7 million, -9.6% versus H1 2023 and -9.3% at Constant
Exchange Rates.
Net sales per type of
activity
|
(in € millions) |
H1 |
H1-2023 |
Change |
| API Solutions
– Other clients |
168.6 |
169.8 |
-0.7% |
|
API Solutions – Sanofi |
163.7 |
192.7 |
-15.0% |
|
API Solutions |
332.4 |
362.4 |
-8.3% |
| CDMO – Other
clients |
72.3 |
82.7 |
-12.7% |
|
CDMO – Sanofi |
44.1 |
51.4 |
-14.2% |
|
CDMO |
116.4 |
134.2 |
-13.3% |
| Net
sales |
448.7 |
496.6 |
-9.6% |
|
Total Net Sales – Sanofi |
207.8 |
244.1 |
-14.9% |
|
Total Net Sales – Other clients |
240.9 |
252.5 |
-4.6% |
API Solutions
API Solutions' net sales decreased by 8.3% to
€332.4 million.
- Sales to
Sanofi decreased by 15.0% due to strong volume
decrease, notably in Sevelamer, produced in Haverhill, and the
suspension of production in Brindisi. H1 net sales include €29
million related to the revision of the historical MSA contractual
clauses agreed with Sanofi in February 20242, primarily
Buserelin’s3 stock clearance.
- Sales to
Other Clients decreased by 0.7%, impacted by the
temporary suspension of API production in Brindisi.
Excluding Brindisi’s site, net sales would have
grown 3.4%, driven by the cross-selling strategy
(representing 9.1% of H1 API Solutions sales to Other Clients) and
an increased customer base (22 new clients added in H1).
CDMO
CDMO sales decreased by 13.3% to €116.4
million.
-
Sales to Sanofi decreased by
14.2% on the back of a strong H1 2023 performance, which
was boosted by stock replenishment of Pristinamycin, an
anti-infective produced exclusively for Sanofi in Elbeuf. H1 2024
sales benefited from the ramp-up of a commercial phase contract in
Large Molecules.
- Sales to
Other Clients decreased by 12.7% due to the temporary
suspension of production in Brindisi, which affected a commercial
phase contract. H1 2024 performance was also penalized by the
downsizing of two large historical commercial phase contracts
(approximately -10 M€), which more than offset the increase in
revenue from new contracts. Excluding the impact of
Brindisi, total CDMO sales to clients other than Sanofi would have
grown by 1.8%, with increased revenues from early-stage
projects.
Throughout the semester, 14 new CDMO
contracts were signed, and eight projects were completed,
including two in late stage with Sanofi, and two projects were put
on hold.
|
(Number of CDMO projects) |
Phase 1 and earlier |
Phase 2 |
Phase 3 |
Commercial Phase |
Total |
| Large
molecules |
7 |
4 |
2 |
4 |
17 |
| Highly potent
molecules |
1 |
|
|
1 |
2 |
| Biochemistry
molecules derived from fermentation |
2 |
|
|
6 |
8 |
| Complex
chemical synthesis molecules |
9 |
7 |
7 |
23 |
46 |
|
Total |
19 |
11 |
9 |
34 |
73 |
Net Sales per type of
molecule
|
(in € million) |
H1-2024 |
H1-2023 |
Change |
| Large
molecules |
58.8 |
35.0 |
+67.9% |
| Highly potent
molecules |
47.1 |
43.7 |
+7.8% |
| Biochemistry
molecules derived from fermentation |
43.7 |
85.5 |
-48.8% |
| Complex
chemical synthesis molecules |
299.1 |
332.4 |
-10.0% |
| Net
Sales |
448.7 |
496.6 |
-9.6% |
- Large
molecules increased by 67.9% to €58.8 million, driven by
the stock clearance of Buserelin, and the ramp-up of a commercial
phase contract in Large Molecules with Sanofi.
- Highly
potent molecules were up 7.8% to €47.1
million on the back of a low comparison base in H1 2023, which was
impacted by the suspension of Prostaglandins’ production.
-
Biochemistry molecules derived from fermentation
decreased 48.8% to €43.7 million. While H1 2023 performance
was boosted by stock replenishment of Pristinamycin, H1 2024 was
impacted by the temporary suspension of API production in Brindisi.
- Complex
chemical synthesis molecules decreased by 10.0% to €299.1
million, mainly impacted by the decreasing volume demand from
Sanofi.
Financial performance
|
(in € million) |
H1-2024 |
H1-2023 |
|
Net Sales |
448.7 |
496.6 |
|
Other revenues |
2.2 |
1.9 |
|
Gross profit |
98.0 |
97.0 |
|
Gross Profit Margin |
21.8% |
19.5% |
|
EBITDA |
(1.4) |
52.1 |
| Non-recurring
costs |
49.0 |
10.4 |
| Core
EBITDA |
47.6 |
62.5 |
|
Core EBITDA Margin |
10.6% |
12.6% |
|
Operating Income |
(33.4) |
16.0 |
|
Finance revenues/costs |
(8.1) |
(3.3) |
|
Income before tax |
(41.5) |
12.6 |
|
Income tax expense |
6.7 |
50.1 |
| Net
income/(loss) |
(34.8) |
62.8 |
| EPS
(in euros) |
(0.37) |
0.67 |
| Average number
of shares outstanding (in millions) |
94.3 |
93.9 |
| Fully
diluted EPS (in euros) |
(0.37) |
0.66 |
| Average number
of shares after dilution (in millions) |
95.9 |
95.5 |
Gross profit was €98.0 million,
compared to €97.0 million in H1 2023, with the gross profit margin
up 231 basis points year-on-year to 21.8%. The exceptional impact
of Buserelin’s stock clearance, positive price and mix effect,
lower energy and raw materials prices, and improved industrial
performance more than offset unfavorable fixed-cost absorption as
we sold in H1 24 products manufactured at the peak level of the
past 18 months inflation cycle.
Core EBITDA amounted to €47.6 million,
down 23.8% compared to €62.5 million in H1 2023. The core EBITDA
margin was 10.6%, compared to 12.6% in H1 2023. The
increase in OPEX was mostly driven by the company's transformation
and reorganization.
EBITDA was €(1.4) million compared to
€52.1 million in H1 2023. The 49.0 million non-recurring
costs include €47.2 million in exceptional items4, of
which
- €33.8 million of
idle costs5 linked to the execution of FOCUS-27,
including the ramp-down of two workshops in Frankfurt started in H1
2024 and reduced inventories in Vertolaye
- €9.0 million of
internal and external costs related to the transformation of the
company
- €4.4 million of
employee-related expenses, including redundancy plans.
|
Key components of the change in Core EBITDA margin |
H124/H123 in percentage points (rounded figures) |
|
H1 2023 Core EBITDA margin |
12.6% |
|
Volume |
-0.0 pts |
|
Price and Mix |
+3.0 pts |
|
Impact of Buserelin’s stock clearance |
+2.1 pts |
|
Industrial performance |
+2.4 pts |
|
Energy and Raw Materials |
+1.2 pts |
|
Unfavorable fixed cost absorption |
-5.5 pts |
|
Other Gross Margin impacts |
-1.9 pts |
|
OPEX |
-2.9 pts |
|
Brindisi site, including the impact of the suspension of
production |
-0.3 pts |
|
H1 2024 Core EBITDA margin |
10.6% |
Operating Income was €(33.4)
million compared to €16.0 million in H1 2023.
Financial income was €(8.1)
million, compared with €(3.3) million in H1 2023, due notably to
the increase in interest rates and the full drawdown of the RCF.
Income before tax was €(41.5)
million6. Net income was €(34.8)
million in H1 2024.
Net Debt Position and Cash
Flow
|
(in € million) |
30 June 2024 |
|
Net cash/(Debt) position – December 2023 |
(171.0) |
|
Cash Flow from Operating activities |
71.2 |
|
Of which change in Working Capital |
66.1 |
- (Increase)/decrease in
inventories
|
4.1 |
- (Increase)/decrease in trade receivables
|
40.0 |
- Increase/(decrease) in trade
payables
|
(16.2) |
- Other current assets and
liabilities
|
38.3 |
|
Cash Flow from Investing Activities |
(61.3) |
|
of which CAPEX |
(61.3) |
|
Cash Flow from Financing activities |
(8.3) |
|
Exchange rate |
((0.9) |
| Net
Cash/(Debt) position – June 2024 |
(170.2) |
The decrease in Net Debt
position, €(170.2) million compared to a €(171.0) million
at the end of December 2023, was notably driven by Working Capital,
including the improvement in inventories. Improved cash collection
drove the change in Trade receivables, with DSO down to 53 compared
to 56 in December 2023 and 70 in H1 2023. Other current assets and
liabilities include a €27 million variation in VAT tax
reimbursement.
Capex reached €(61.3) million (13.7% of
Net Sales), of which 56% were dedicated to growth
projects, including increased capacities for Peptides and
Oligonucleotides, Vitamin B12, and Prostaglandins.
Free Cash Flow before financing
activities was €10.0 million, compared to €(111.2) million at the
end of June 2023.7
|
(in € million) |
30 June 2024 |
31 December 2023 |
|
Bank Cash Balances |
282.8 |
34.5 |
| Revolving
Credit Facilities |
(453.0)8 |
(205.5) |
|
Net Debt Position |
(170.2) |
(171.0) |
Net Debt to Core EBITDA restated for IFRS 16 was
2.38x, below the RCF covenant of 4.0x.
ESG Roadmap
EUROAPI ESG roadmap is on track to achieve its 2030 goals and
has recently achieved:
- 100% of its
sites certified ISO14001 (environment management) and ISO50001
(energy management).
- CDP score B,
which indicates that the group is addressing the environmental
impacts of its business and ensures good environmental
management.
Main H1 2024 events
- On
January 25, 2024, EUROAPI announced that it had initiated
a pivotal collaboration with SpiroChem, a leading Contract Research
Organization (CRO).
- On March
14, 2024, EUROAPI announced the pause of API production at
the Brindisi site in Italy after identifying quality control
deficiencies and decided to suspend its full-year 2024
guidance.
- On May
23, 2024, EUROAPI announced a Contract Manufacturing
Organization (CMO) agreement with a global animal health company to
supply key veterinary product. The total contract value is expected
to range between €130 and 150 million over 2025-2029.
- On June
6, 2024, EUROAPI received official notification from the
European Commission that it had been selected as one of the 13
companies eligible to share up to EUR 1 billion in total public
funding under the Important Project of Common European Interest
(IPCEI) dedicated to the pharmaceutical sector.
- On June
18, 2024, EUROAPI announced the implementation of a 5-year
development and manufacturing agreement with Priothera, a
biotechnology company specializing in treating hematological
malignancies and improving CAR-T cell therapies.
- On June
26, 2024, EUROAPI
- detailed the
FOCUS-27 strategy and announced its target to generate €75 million
to €80 million annual run-rate incremental Core EBITDA by the end
of 2027. More detail on EUROAPI’s website: EUROAPI is moving ahead
with its FOCUS-27 plan, setting the foundations for future
profitable growth | EUROAPI
- announced that
the Brindisi site will progressively resume shipments and
production during Q3 2024.
Glossary and definition of non-GAAP
indicators
EBITDA and Core EBITDA
EBITDA corresponds to operating income (loss)
restated for depreciation and amortization and net impairment of
intangible assets and property, plant and equipment.
Core EBITDA thus corresponds to EBITDA restated for restructuring
costs and similar items (excluding depreciation and write-downs),
allocations net of reversals of unutilized provisions for
environmental risks, and other items not representative of the
Group’s current operating performance or related to the effects of
acquisitions or disposals.
Cash Flow before Financing
activities
Cash Flow before Financing activities
corresponds to the sum of Cash Flow from Operating Activities and
Cash Flow from Investing Activities as presented in the
consolidated statement of Cash Flow.
Months on Hand (MOH)
Net Inventory value at the of the period divided
by Net Sales
New clients
Clients representing at least €50 thousands of
net sales on the year.
Cross Selling
Selling a different product to an existing
client that is already buying one or several products from
EUROAPI.
Early-stage and Late-stage
projects
Early-stage: pre-clinical, phase 1, and phase
2
Late-stage: phase3, in validation, and commercial
Presentation of H1-2024
results
An analysts’ conference call will be held by
EUROAPI’s management tomorrow (31 July 2024) at 8:30 a.m. CET via
an audio webcast (live and replay), and the results presentation
will be available on the corporate website 2024 Half year results |
EUROAPI
Financial agenda (all dates to
be confirmed)
- 11 February 2025: FY 2024
Results
- 21 May 2025: 2025 AGM
- 29 July 2025: H1 2025 results
About EUROAPI
EUROAPI is focused on reinventing active ingredient solutions to
sustainably meet customers’ and patients’ needs around the world.
We are a leading player in active pharmaceutical ingredients with
approximately 200 products in our portfolio, offering a large span
of technologies while developing innovative molecules through our
Contract Development and Manufacturing Organization (CDMO)
activities.
Taking action for health by enabling access to
essential therapies inspires our 3,650 people every day. With
strong research and development capabilities and six manufacturing
sites, all located in Europe, EUROAPI ensures API manufacturing of
the highest quality to supply customers in more than 80 countries.
EUROAPI is listed on Euronext Paris; ISIN: FR0014008VX5; ticker:
EAPI). Find out more at www.euroapi.com and follow us on
LinkedIn.
Media Relations contact:
Laurence Bollack
Tel.: +33 (0)6 81 86 80 19
mr@euroapi.com
|
Investor Relations contacts:
Sophie Palliez-Capian
Tel.: +33 (0)6 87 89 33 51
Sophie.palliez@euroapi.com
Camille Ricotier
Tel: +33 (0)6 43 29 93 79
Camille.ricotier@euroapi.com |
Forward-Looking
Statements
Certain information contained in this press release is forward
looking and not historical data. These forward-looking statements
are based on opinions, projections and current assumptions
including, but not limited to, assumptions concerning the Group’s
current and future strategy, financial and non-financial future
results and the environment in which the Group operates, as well as
events, operations, future services or product development and
potential. Forward-looking statements are generally identified by
the words “expects”, “anticipates”, “believes”, “intends”,
“estimates”, “plans” and similar expressions. Forward looking
statements and information do not constitute guarantees of future
performances, and are subject to known or unknown risks,
uncertainties and other factors, a large number of which are
difficult to predict and generally outside the control of the
Group, which could cause actual results, performances or
achievements, or the results of the sector or other events, to
differ materially from those described or suggested by these
forward-looking statements. These risks and uncertainties include
those that are indicated and detailed in Chapter 3 “Risk factors”
of the Universal Registration Document filed with the French
Financial Markets Authority (Autorité des marchés financiers, AMF)
on April 5, 2024. These forward-looking statements are given only
as of the date of this press release and the Group expressly
declines any obligation or commitment to publish updates or
corrections of the forward-looking statements included in this
press release in order to reflect any change affecting the
forecasts or events, conditions or circumstances on which these
forward-looking statements are based.
Appendix
Consolidated Income
Statement
|
(in € millions) |
30-Jun-24 |
30-Jun-23 |
| Net sales |
448.7 |
496.6 |
| Other
revenues |
2.2 |
1.9 |
|
Cost of sales |
(352.9) |
(401.4) |
| Gross
profit |
98.0 |
97.0 |
| Selling and
distribution expenses |
(18.7) |
(21.3) |
| Research and
development expenses |
(13.9) |
(13.3) |
| Administrative
and general expenses |
(46.6) |
(42.8) |
| Other
operating income |
1.3 |
0.7 |
| Impairment of
assets |
(3.9) |
|
|
Restructuring costs and similar items |
(49.7) |
(4.3) |
|
Operating income |
(33.4) |
16.0 |
| Financial
expenses |
(11.2) |
(5.3) |
|
Financial income |
3.1 |
1.9 |
|
Income/(loss) before tax |
(41.5) |
12.6 |
| Income tax
expense |
6.7 |
50.1 |
| Net
income/(loss) |
(34.8) |
62.8 |
| Number of
shares outstandings |
94.3 |
93.9 |
| EPS |
(0.37) |
0.67 |
| Diluted number
of shares |
95.9 |
95.5 |
| EPS
diluted |
(0.37) |
0.66 |
Consolidated Balance Sheet
|
(in € millions) |
30-Jun-24 |
31-Dec-23 |
| Goodwill |
4.6 |
4.6 |
| Property,
plant and equipment |
469.0 |
468.9 |
| Right-of-use
assets |
35.2 |
37.2 |
| Intangible
assets |
38.9 |
34.2 |
| Other
non-current assets |
6.7 |
9.0 |
|
Deferred tax assets |
85.7 |
79.2 |
|
Non-current assets |
640.2 |
633.1 |
|
Inventories |
638.7 |
644.8 |
| Trade
receivables |
176.7 |
216.3 |
| Other current
assets |
57.5 |
83.7 |
| Cash and cash
equivalents |
282.8 |
34.5 |
|
Current assets |
1,155.8 |
979.3 |
| Total
assets |
1,795.9 |
1,612.4 |
|
(in € millions) |
30-Jun-24 |
31-Dec-23 |
| Equity
attributable to owners of the parent |
889.5 |
927.7 |
|
Total equity |
889.5 |
927.7 |
| Non-current
lease liabilities |
14.5 |
15.5 |
| Provisions |
155.3 |
158.6 |
| Other
non-current liabilities |
0.0 |
0.0 |
| Deferred tax
liabilities |
0.8 |
1.6 |
|
Non-current liabilities |
170.6 |
175.7 |
| Trade
payables |
143.6 |
159.6 |
| Other current
liabilities |
135.1 |
139.3 |
| Current lease
liabilities |
4.3 |
4.6 |
| Short-term debt
and other financial liabilities |
452.8 |
205.4 |
|
Current liabilities |
735.9 |
508.9 |
| Total
equity and liabilities |
1,795.9 |
1,612.4 |
Consolidated Statements of Cash Flow
|
(in € millions) |
30-Jun-24 |
30-Jun-23 |
|
Net income / (loss) |
(34.8) |
(62.8) |
| Depreciation
& amortization |
32.0 |
36.1 |
| Net change in
current & deferred taxes |
(6.7) |
(50.1) |
| Other profit or
loss items with no cash effect and reclass of interest |
14.7 |
8.2 |
|
Operating cash flow before changes in working
capital |
5.1 |
56.9 |
|
(Increase)/decrease in inventories |
4.1 |
(66.0) |
|
(Increase)/decrease in trade receivables |
40.0 |
30.1 |
|
Increase/(decrease) in trade payables |
(16.2) |
(49.0) |
| Net change in
other current assets and other current liabilities |
38.3 |
(10.3) |
|
Net cash provided by operating activities |
71.2 |
(38.2) |
| Acquisitions of
property, plant and equipment and intangible assets |
(61.3) |
(73.1) |
| Acquisition of
shares on consolidated entities, net of cash acquired |
|
- |
|
Sales/Acquisitions to/from Group entities |
0.0 |
- |
|
Net cash (used in) investing activities |
(61.3) |
(73.1) |
| Capital
increases |
- |
- |
| Repayment of
lease liabilities |
(2.7) |
(4.6) |
| Net change in
short-term debt |
246.0 |
100.0 |
| Finance costs
paid |
(4.1) |
(2.0) |
| Acquisitions and
disposals of treasury shares |
(0.0) |
(0.2) |
| Other net cash
flow arising from financing activities |
(0.3) |
(0.0) |
|
Net cash provided by financing activities |
238.8 |
93.2 |
| |
|
|
| Impact of
exchange rates on cash and cash equivalents |
(0.5) |
0.6 |
| |
|
|
| Net
change in cash and cash equivalents |
248.3 |
(17.5) |
|
|
|
|
|
Cash and cash equivalents at beginning of
period |
34.5 |
74.5 |
|
Cash and cash equivalents at end of period |
282.8 |
57.0 |
Reconciliation of Consolidated Operating
Income (EBIT) to restated Core EBITDA
| (in €
millions) |
30-Jun-24 |
30-Jun-23 |
|
Operating income |
(33.4) |
16.0 |
| Depreciation
and amortization |
32.0 |
36.1 |
|
EBITDA |
(1.4) |
52.1 |
| Restructuring
costs and similar items (excluding depreciation and
amortization) |
47.2 |
4.3 |
|
Of which idle costs |
33.8 |
|
|
Of which employee-related expenses |
4.4 |
|
|
Of which internal and external costs related to FOCUS-27, and
transformation |
9.0 |
4.3 |
| Allocations net
of reversals of unutilized provisions for environmental risks |
(0.2) |
(0.3) |
| Other |
2.0 |
6.3 |
| Core
EBITDA |
47.6 |
62.5 |
| |
|
|
|
Core EBITDA |
10.6% |
12.6% |
- Idle costs are mainly affecting
- Vertolaye, with the inventory
reduction program being the main business factor, as well as the
discontinuation of 2 APIs,
- Frankfurt, with the decision to
discontinue 9 APIs (the ramp down of two workshops has already
started in 2024).
- Employee-related expenses of €4.4
million include the impact of the redundancy plan announced in
EUROAPI UK and severance payments in connection with the renewal of
the Executive leadership teams.
Restructuring costs correspond to expenses
incurred in connection with the transformation or reorganization of
the EUROAPI Group’s operations and support functions. These costs
include collective redundancy plans, compensation awarded to third
parties for the early termination of contracts, commitments made in
connection with transformation and reorganization decisions, and
idle costs related to the temporary shutdown of sites or production
lines associated with such programs.
They also include accelerated depreciation charges arising from
closures of production facilities (including leased facilities),
and losses on any resulting asset disposals.
In addition, restructuring costs and similar items comprise
expenses (both internal and external)
incurred in connection with FOCUS-27.
1 All comments in this press release are made compared to H1
2023 figures unless stated otherwise
2 Full-year expected impact: €38 million (Regulated Agreement
approved by the May 22nd AGM)
3 Buserelin is a large molecule used primarily in the treatment of
prostate cancer and endometriosis.
4 See appendix page 13
5 Under-activity triggered by the implementation
of FOCUS-27
6 H1 2023 income tax included €46.8m deferred tax income related to
the revaluation of EUROAPI’s Hungarian assets.
7 See detailed in Consolidated Cash Flow Statement page 12
8 RCF: €451 million + €2 million accrued interests
- EUROAPI - Press release - July 30, 2024
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