Corporate | 29 March 2017 07:25
STADA: Final figures for 2016 confirm good year-end result – medium term growth targets for 2019 raised
|
DGAP-News: STADA Arzneimittel AG / Key word(s): Final Results
–
Sound sales development for Generics in Italy, Russia and Vietnam – strong sales recovery in
Belgium – Significant sales increase for Branded Products in Germany, Italy and Vietnam – Gross margin improved to 48.3 percent – Strategic outlook for 2019 increased – medium-term adjusted EBITDA margin of about 23 percent expected – New Member of the Executive Board Dr. Barthold Piening to take office earlier than expected on April 1, 2017 STADA Group Key Figures
Bad Vilbel, March 29, 2017 – Today, on March 29, 2017, the Executive Board of STADA Arzneimittel AG released the final figures for financial year 2016. Amid a reassessment of a transaction, the final figures for 2016 differ slightly from the preliminary figures that the Group already published on March 1, 2017. In addition, the Executive Board provided details on the development of the segments and confirmed the guidance for 2017 as well as the strategic outlook for 2019. “In 2016, we were not only able to increase earnings by a substantial margin in some areas, we also slightly surpassed the original forecast for the past financial year in all key figures. This is an excellent result, particularly considering the fact that we pursued a number of changes in connection with the further development of the corporate strategy. Thanks to the faster and more efficient implementation of the measures, we were also in a position to recently raise the strategic outlook for 2019”, says STADA Chairman of the Executive Board Dr. Matthias Wiedenfels.
Increase in Group sales
Increase in all adjusted key earnings figures
Reported operating profit recorded a decrease of 20 percent in the reporting year to Euro 178.1 million (previous year: Euro 223.7 million). Adjusted operating profit showed a plus of 4 percent to Euro 294.4 million (previous year: Euro 283.8 million). Reported EBITDA decreased by 4 percent to Euro 361.5 million (previous year: Euro 377.1 million). Adjusted EBITDA showed an increase of 2 percent to Euro 398.0 million (previous year: Euro 389.4 million). Reported net income was down 22 percent to Euro 85.9 million (previous year: Euro 110.4 million). Adjusted net income increased by 7 percent to Euro 177.3 million (previous year: Euro 165.8 million). Reported earnings per share decreased to Euro 1.38 (previous year: Euro 1.79). Adjusted earnings per share increased to Euro 2.85 (previous year: Euro 2.69).
Significant improvement in cash flow from operating activities
Improved net debt to adjusted EBITDA ratio
Guidance for 2017
Strategic outlook for 2019 increased
New Member of the Executive Board to take office earlier than expected on April 1, 2017
Reported sales of the Generics segment grew by 2 percent to Euro 1,280.7 million in the reporting year (previous year: Euro 1,261.4 million). This development was mainly based on sales growth in Italy, Russia and Vietnam. Sales of the Generics segment adjusted for portfolio effects and currency influences increased by 3 percent to Euro 1,287.4 million (previous year: Euro 1,253.2 million). Generics accounted for 59.9 percent of Group sales (previous year: 59.7 percent). Within the Generics segment, the eight largest countries according to sales developed as follows in financial year 2016: Sales in the Generics segment in Germany were at the level of the previous year with Euro 308.0 million (previous year: Euro 308.3 million). Sales achieved with generics in Italy increased by 6 percent to Euro 157.7 million, in particular as a result of positive volume effects (previous year: Euro 149.0 million). In Spain , sales of generics decreased by 1 percent to Euro 105.4 million (previous year: Euro 107.0 million). This development was primarily attributable to a high comparable basis in the previous year due to numerous product launches as well as the statutory approval of discounts in the reporting year and the resulting increase in the rate of sales deductions. Sales generated with generics in Russia increased by 18 percent, applying the exchange rates of the previous year. Despite a negative currency effect of the Russian ruble, sales in Euro increased by 11 percent to Euro 92.5 million (previous year: Euro 83.6 million). In Belgium , sales generated with generics declined, particularly due to a still hesitant purchasing and sales strategy of the Belgian sales partner, by 5 percent to Euro 90.7 million (previous year: Euro 95.0 million) – whereby positive sales development was achieved in the second half of 2016. While sales in the first six months of 2016 decreased by 37 percent, an increase of 66 percent was achieved in the second half of the year. Sales generated with generics in France recorded growth of 2 percent to Euro 81.9 million despite continued strong price and discount competition (previous year: Euro 80.1 million). Despite increased price pressure, sales generated with generics in Vietnam grew by 11 percent, applying the exchange rates of the previous year. As a result of a weaker Vietnamese dong, sales in euro increased by 9 percent to Euro 69.1 million (previous year: Euro 63.2 million). This development resulted, in particular, from local hospital tender processes that were won. The sales generated with generics in Serbia decreased by 23 percent, applying the exchange rates of the previous year. In euro, sales declined by 24 percent to Euro 55.8 million as a result of a slightly negative currency effect of the Serbian dinar (previous year: Euro 73.7 million). This development was, among other things, attributable to the decision on declining reimbursement prices. Additionally, wholesalers continued to have high inventories. Adjusted EBITDA for Generics showed growth of 14 percent to Euro 264.9 million in 2016 (previous year: Euro 232.0 million). This development was primarily attributable to significant increase in the operating profit of the German sales companies due for the most part to a lower rate of sales deductions as well as the good sales performance in Italy, Switzerland and Vietnam. The adjusted EBITDA margin for Generics was at 20.7 percent. STADA Segment Key Figures Branded Products
Reported sales of the Branded Products segment increased by 1 percent to Euro 858.5 million in financial year 2016 (previous year: Euro 853.6 million). This development was based primarily on declining sales in Russia and occurred despite strong development in Germany and acquisition-related growth in the United Kingdom. Sales of the Branded Products segment adjusted for portfolio effects and currency influences increased by 4 percent to Euro 879.8 million (previous year: Euro 847.1 million). Branded products contributed 40.1 percent to Group sales (previous year: 40.3 percent). Within the Branded Products segment, development of the five largest countries according to sales was as follows in the reporting year: Sales generated with branded products in Germany recorded growth of 38 percent to Euro 177.4 million (previous year: Euro 128.3 million). This development was attributable to optimizations in the product portfolio, strong growth for core products and the launch of new products. In the United Kingdom, sales generated with branded products increased by 17 percent, applying the exchange rates of the previous year. Despite the negative currency effect as a consequence of the referendum decision in favor of the United Kingdom leaving the European Union, sales in euro increased by 4 percent to Euro 175.4 million (previous year: Euro 168.0 million). The acquisition of the Socialites Group in December 2015 and of BSMW Limited in February 2016 contributed to this growth in sales. However, a weak cough and cold season at the beginning of the year and reduced sales of suncream products had a dampening effect on sales. In view of the continued difficult framework conditions, in particular in the self-pay market, sales generated with branded products in Russia decreased by 25 percent, applying the exchange rates of the previous year. As a result of a clearly negative currency effect of the Russian ruble, sales in euro declined by 29 percent to Euro 150.1 million (previous year: Euro 212.2 million). This development was primarily driven by growing consolidation on the demand side and consequently higher discount burdens. In addition, price increases in the so-called Vital and Essential Drugs List (EDL) could not compensate for the high inflation rate. Sales generated in Italy with branded products recorded growth of 9 percent to Euro 43.9 million, in particular as a result of acquisitions (previous year: Euro 40.4 million). Sales generated in Vietnam with branded products increased by 21 percent, applying the exchange rates of the previous year. In euro, sales increased due to a slightly negative currency effect of the Vietnamese dong by 19 percent to Euro 36.7 million (previous year: Euro 30.8 million). Reported EBITDA for Branded Products decreased by 9 percent to Euro 200.7 million in 2016 (previous year: Euro 220.1 million). This development was based on various effects in the Russian market. On the one hand, high inflation negatively affected consumer sentiment and purchasing power of end consumers, on the other hand, increased discount burdens and sales measures in connection with a clearly negative currency effect of the Russian ruble. In addition, despite a positive sales performance, negative translation effects resulting from the EU referendum as well as higher expenses for sales and marketing led to a burden on the key earnings figures of the British subgroup Thornton & Ross. The adjusted EBITDA margin for Branded Products was at 23.4 percent.
STADA reconciliation – special items 2016
1
As a result of the presentation in EUR million, deviations due to rounding may occur in the tables.
Contact:
Or visit us in the Internet at www.stada.com .
29.03.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
|
| 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: | communications@stada.de |
| Internet: | www.stada.de |
| ISIN: | DE0007251803, DE0007251845, |
| WKN: | 725180, 725184, |
| Indices: | MDAX |
| Listed: | Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |