Interim report January-March 2015


January - March 2015

  · Net sales amounted to SEK 873 million (578), an increase of 51%
  · EBITDA increased by 55% and amounted to SEK 158 million (102) giving an
EBITDA margin of 18.1% (17.7)
  · Operating profit (EBIT) amounted to SEK 100 million (78)
  · Profit after tax amounted to SEK 121 million (55), giving a net margin of
13.8% (9.5), including a financial investment capital gain of SEK 36.3 million
  · Earnings per share amounted to SEK 2.74 (2.16), after dilution 2.74 (2.05)
  · Cash flow from operating activities was SEK 148 million (57)
  · Net debt to EBITDA was 2.1 (1.2)

The segments within the manufacturing services business area are from this year
split into technology instead of geography.

Key figures
                        Jan - Mar     change         Apr 14
SEK million          2015   2014      in %        - Mar 15   2014
Net sales            873.2  577.9     51.1        2 864.6    2 569.3
Net sales            853.0                  47.6
(constant FX
rates)
EBITDA               158.0  101.9     54.9        455.3      399.3
EBIT                 100.4  77.8      29.1        294.7      272.1
EBITDA margin        18.1   17.7                  15.9       15.5
(%)
Earnings per         2.74   2.16                  5.77       4.63
share
Non-recurring        0.0    0.0                   19.2       19.2
items
Return on            13.1   18.7                             11.4
equity (%)
Return on             12.3   20.7                            12.4
operating
capital (%)
Equity to            49.9   39.2                             39.4
assets (%)
Net debt             937.3  391.0                            1 163.7
Net debt to          0.3    0.5                              0.5
Equity
Net debt to          2.1    1.2                              2.9
EBITDA

Thomas Eldered, CEO:
“Sales were in line with expectations, with reported organic sales growth in
local currencies of 0.5%. Thus, sales, excluding 2014 acquisitions, were the
highest ever for a first quarter, even higher than the very strong comparison
quarter 2014. Acquisitions completed in the previous quarter developed well and
integration progressed according to plan generating an increase of 47% in sales.

The segment Development & Technology reported very strong sales with an organic
growth of more than 71%. Manufacturing services, excluding acquisitions,
reported sales higher than the strong Q1 2014, benefitting from strong currency
effects partly balancing a higher level of seasonal variation. The profit was
affected by  non-recurring items. We expect some recovery later in the year,
especially in Solids and others. Our commercial activities are showing good
results as we continue to generate a high level of new manufacturing projects.
We have also started to explore opportunities to provide value to our new
combined customer base and we may see benefits from this already in the short
-term.

Starting this quarter, we have implemented a revised segment reporting, more
appropriate for the larger group. Manufacturing Services will be reported in two
segments, but now based on technology instead of geography. I believe the new
segments will promote a strategic view on these segments regarding investments,
capacities and returns. In particular, we expect to see a continued strong
demand in the Manufacturing Services Sterile Liquids (“MS-SL”) segment
contributing to further profitability improvement and we will continue to invest
in this growth area.

Operating cash flow increased to SEK 148 million and contributed together with
gains from short term investments to a strong positive cash flow. After a
quarter of significant de-leveraging, our reported net debt to EBITDA ratio
improved to 2.1 from 2.9 at year-end due. This is a proof of our financial
capacity to proceed with the acquisition opportunities we are currently
evaluating. Although acquisitions will continue to be a very important component
of our growth strategy, we are also actively progressing several promising
technology and product development projects, including collaboration and
partnerships with other companies. These projects will contribute to our organic
growth and profitability going forward.

To summarize, I am very pleased with what our employees have achieved during the
quarter. Following integration activities, ERP-system updates, weaker demand for
some products but also good new project activity we are in a good position to
meet the challenges we face, explore the opportunities we see in the market and
to benefit from the recent acquisitions we have made”

The complete interim report is attached through the link at the end of the press
release.

Web conference
The company invites investors, analysts and media to a web conference with a
presentation (in English) on 7 May at 10:00 am CET where CEO Thomas Eldered and
CFO Björn Westberg will present and comment on the interim report and answer
questions.

To participate in the web conference, please use the link below:

http://edge.media-server.com/m/p/hfsw4kpp

Questions may be submitted by dialing below telephone numbers or by typing them
in the Q&A box during the conference. If you don’t wish to ask questions by
telephone you only need to participate through the link above.
From Sweden: + 46 8 505 56 453
From Denmark: + 45 35 44 55 74
From Finland: + 358 9 8171 0490
From Norway: + 47 235 00 251
From the UK: + 44 203 009 24 55
From Germany: +49 211 971 900 76
From Switzerland: +41 225 80 29 94
From France: + 33 170750706
From Spain: +34 911 140 089
From Portugal: +35 121 06 09 104
From USA: +1 855 228 3719
Pin code for participants:
213122#

For more information, please visit www.recipharm.com or contact:
Thomas Eldered, CEO, thomas.eldered@recipharm.com, +46 8 602 52 00
Björn Westberg, CFO, bjorn.westberg@recipharm.com, +46 8 602 46 20

This information is published in accordance with the Swedish Securities Market
Act, the Swedish Financial Instruments Trading Act and/or the regulations of
NASDAQ Stockholm. This information was submitted for publication on 7 May 2015
at 07:45 am CET.

About Recipharm
Recipharm is a leading CDMO (Contract Development and Manufacturing
Organisation) in the pharmaceutical industry employing some 2,200 employees.
Recipharm offers manufacturing services of pharmaceuticals in various dosage
forms, production of clinical trial material including API and pharmaceutical
product development. Recipharm manufactures more than 400 different products to
customers ranging from Big Pharma to smaller research- and development
companies. Recipharm’s turnover is approximately SEK 3.3 billion and the Company
operates development and manufacturing facilities in Sweden, France, the UK,
Germany, Spain, Italy and Portugal and is headquartered in Jordbro, Sweden. The
Recipharm B-share (RECI B) is listed on NASDAQ Stockholm.

For more information on Recipharm and our services, please visit
www.recipharm.com
Recipharm AB (publ)
Corporate identity number 556498-8425
Address Lagervägen 7, SE-136 50 Jordbro, Sweden, Telephone 46 8 602 52
00, Fax 46 8 81 87 03
www.recipharm.com

Attachments

Press release Q1 report 150507.pdf 05068906.pdf