Fagron realises organic turnover growth of 6.8%

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| Source: Fagron NV
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Regulated information
Nazareth (Belgium) / Rotterdam (The Netherlands), 12 April 2018

Fagron realises organic turnover growth of 6.8%

Key points

  • Organic turnover growth in Europe, South America and North America.
  • Europe: Structural solution to limited availability of pharmaceutical raw materials
  • South America: Innovation-driven growth of Brands
  • North America:
    • Wichita facility receives licence California
    • Complementary acquisition of the American company Humco
    • Settlement with former owners of JCB Laboratories
  • Further growth in turnover and profitability expected in 2018

             

Rafael Padilla, CEO of Fagron: "Fagron reported strong results in the first quarter of 2018. The comparable turnover at constant exchange rates increased by 6.8%. Turnover growth was supported by all regions we are active in. Although turnover growth in Europe was still affected by limited product availability of pharmaceutical raw materials in the first quarter, this problem has now largely been solved. We expect that with the structural solution, turnover development will no longer be negatively affected in the current quarter.

The focus on the development and introduction of innovative products, and particularly the introduction of lifestyle-related prescription products in Brazil, has led to significant growth at Brands in the first quarter of 2018.

In North America, the compounding facility in Wichita (Kansas) has been operational now for a full year. I'm pleased to announce that we received a licence for California, the most important state for our sterile products, in March 2018. This 49th licence means that the only two licences we still need to obtain, are those for Indiana and North Dakota. We expect to receive these later this year.

Besides the organic growth we realised, the in April announced acquisition of Humco - a leading developer, manufacturer and supplier of patented pharmaceutical delivery vehicles and pharmaceutical branded products - significantly and strategically strengthens our strategic position in the United States. Fagron's leading market positions combined with the acquisition of Humco give us an excellent proposition for further growth of turnover as well as profitability in 2018."

Turnover (x € 1,000) Q1 2018 Q1 2017[1] Total growth Total growth CER Org. growth Org. growth CER
Fagron Europe 63,524 62,210 2.1% 1.5% 4.3% 3.7%
Fagron South America 23,846 25,111 -5.0% 13.1% -9.8% 7.4%
Fagron North America 19,972 19,995 -0.1% 15.3% -0.1% 15.3%
Fagron (excl. HL Technology) 107,342 107,317 0.0% 6.8% 0.0% 6.8%
HL Technology 1,729 1,723 0.4% 9.4% 0.4% 9.4%
Fagron Group 109,071 109,040 0.0% 6.8% 0.0% 6.8%

CER = constant exchange rates

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Fagron realises organic turnover growth of 6.8%



[1] Turnover of 2017 is revised for IFRS 15.