- Consolidated revenues € 302.2 million, +9.6%.
- EBITDA(1) € 99.0 million, +19.6%
- Operating income € 90.2 million, +22.7%.
- Net income € 65.5 million, +26.0%.
- Net financial position(2): net debt of € 42.1 million.
- Shareholders' equity € 916.5 million.
- Full year 2016 targets: sales of more than € 1,100 million, operating income of more than € 310 million and net income of more than € 220 million.
Milan, 5 May 2016 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter 2016 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements will be available today at the company's offices and on the company's website www.recordati.com and can also be viewed on the authorized storage system 1Info (www.1Info.it).
Financial highlights
- Consolidated revenues in the first quarter 2016 are € 302.2 million, up by 9.6% compared to the same period of the preceding year. International sales grow by 11.5%.
- EBITDA(1), at 32.7% of sales, is € 99.0 million, an increase of 19.6% over the same period of the preceding year.
- Operating income, at 29.8% of sales, is € 90.2 million, an increase of 22.7%.
- Net income, at 21.7% of sales, is € 65.5 million, an increase of 26.0% over the first quarter of 2015.
- Net financial position(2) at 31 March 2016 records a net debt of € 42.1 million. Shareholders' equity increases to € 916.5 million.
(1) Earnings before interest, taxes, depreciation and amortization.
(2) Cash and short-term financial investments less bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives.
Management Comments
"We are pleased to report excellent results in the first quarter, which show significant sales and margin growth, in part due to favourable seasonality in some countries", declared Giovanni Recordati, Chairman and CEO. "For the full year 2016 we now expect to achieve sales of more than € 1,100 million, operating income of more than € 310 million and net income of more than € 220 million."
Conference call
Recordati will be hosting a conference call today 5 May 2016 at 4.00 pm Italian time (3.00 pm London time, 10.00 am New York time). The dial-in numbers are:
Italy +39 02 8058811, toll free 800 213 858
UK +44 1 212818003, toll free 800 0156384
USA +1 718 7058794, toll free 855 2656959
France +33 170918703
Germany +49 69 255114451
Callers are invited to dial-in 10 minutes before conference time. If conference operator assistance is required during the connection please digit * followed by 0 or call +39 02 8061371. A recording of the conference call will be placed on the website www.recordati.com.
A set of slides which will be referred to during the call will be available on our website www.recordati.com under Investors/Company Presentations.
Recordati, established in 1926, is an international pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), with a total staff of around 4,000, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations in the main European countries, in Russia, in other Central and Eastern European countries, in Turkey, in North Africa and in the United States of America. An efficient field force of medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to the research and development of new specialties within the urogenital therapeutic area and of treatments for rare diseases. Consolidated revenue for 2015 was € 1,047.7 million, operating income was € 278.5 million and net income was € 198.8 million.
For further information:
Recordati website: www.recordati.com
Investor Relations Media Relations
Marianne Tatschke Studio Noris Morano
(39)0248787393 (39)0276004736, (39)0276004745
e-mail: inver@recordati.it e-mail: norismorano@studionorismorano.com
Statements contained in this release, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.
RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)
| INCOME STATEMENT | First Quarter 2016 | First Quarter 2015 | Change % |
| REVENUE | 302,247 | 275,746 | 9.6 |
| Cost of sales | (93,701) | (88,293) | 6.1 |
| GROSS PROFIT | 208,546 | 187,453 | 11.3 |
| Selling expenses | (79,565) | (77,978) | 2.0 |
| Research and development expenses | (22,276) | (19,892) | 12.0 |
| General & administrative expenses | (16,040) | (15,351) | 4.5 |
| Other income (expenses), net | (510) | (761) | (33.0) |
| OPERATING INCOME | 90,155 | 73,471 | 22.7 |
| Financial income (expenses), net | (2,524) | (3,728) | (32.3) |
| PRE-TAX INCOME | 87,631 | 69,743 | 25.6 |
| Provision for income taxes | (22,153) | (17,775) | 24.6 |
| NET INCOME | 65,478 | 51,968 | 26.0 |
| Attributable to: | |||
| Equity holders of the parent | 65,471 | 51,964 | 26.0 |
| Minority interests | 7 | 4 | 75.0 |
| EARNINGS PER SHARE | First Quarter 2016 | First Quarter 2015 | Change % |
| Basic | € 0.319 | € 0.254 | 25.6 |
| Diluted | € 0.313 | € 0.248 | 26.2 |
Earnings per share (EPS) are based on average shares outstanding during each year, 205,253,629 in 2016 and 204,537,493 in 2015, net of average treasury stock which amounted to 3,871,527 shares in 2016 and to 4,587,663 shares in 2015.
Diluted earnings per share is calculated taking into account stock options granted to employees.
| COMPOSITION OF REVENUE | First Quarter 2016 | First Quarter 2015 | Change % |
| Total revenue | 302,247 | 275,746 | 9.6 |
| Italy | 63,760 | 61,883 | 3.0 |
| International | 238,487 | 213,863 | 11.5 |
RECORDATI GROUP
Summary of consolidated results prepared in accordance with the International Accounting Standards and International Financial Reporting Standards (IAS/IFRS)
(thousands of €)
| ASSETS | 31.3.2016 | 31.12.2015 |
| Property, plant and equipment | 110,113 | 108,987 |
| Intangible assets | 239,024 | 246,450 |
| Goodwill | 452,339 | 453,285 |
| Equity investments | 29,288 | 32,444 |
| Non-current receivables | 4,460 | 4,549 |
| Deferred tax assets | 30,376 | 30,500 |
| TOTAL NON-CURRENT ASSETS | 865,600 | 876,215 |
| Inventories | 138,627 | 143,093 |
| Trade receivables | 222,498 | 177,219 |
| Other receivables | 24,016 | 28,883 |
| Other current assets | 7,643 | 5,280 |
| Fair value of hedging derivatives (cash flow hedge) | 8,854 | 12,671 |
| Short-term financial investments, cash and cash equivalents | 270,518 | 225,525 |
| TOTAL CURRENT ASSETS | 672,156 | 592,671 |
| TOTAL ASSETS | 1.537,756 | 1,468,886 |
| EQUITY AND LIABILITIES | 31.3.2016 | 31.12.2015 |
| Share capital | 26,141 | 26,141 |
| Capital in excess of par value | 83,719 | 83,719 |
| Treasury stock | (45,843) | (35,061) |
| Hedging reserve | (4,231) | (3,290) |
| Translation reserve | (72,273) | (66,918) |
| Other reserves | 40,733 | 42,543 |
| Retained earnings | 884,329 | 685,587 |
| Net income for the period | 65,471 | 198,792 |
| Interim dividend | (61,606) | (61,606) |
| GROUP SHAREHOLDERS' EQUITY | 916,440 | 869,907 |
| Minority interest | 92 | 85 |
| SHAREHOLDERS' EQUITY | 916,532 | 869,992 |
| Loans due after one year | 265,647 | 282,615 |
| Employees' termination pay | 19,057 | 18,895 |
| Deferred tax liabilities | 21,705 | 22,360 |
| Other non-current liabilities | 2,517 | 2,517 |
| TOTAL NON-CURRENT LIABILITIES | 308,926 | 326,387 |
| Trade payables | 115,351 | 106,597 |
| Other payables | 78,107 | 72,351 |
| Tax liabilities | 27,599 | 14,592 |
| Other current liabilities | 1,183 | 959 |
| Provisions | 29,450 | 29,400 |
| Fair value of hedging derivatives (cash flow hedge) | 4,784 | 4,290 |
| Loans due within one year | 39,123 | 34,469 |
| Bank overdrafts | 16,701 | 9,849 |
| TOTAL CURRENT LIABILITIES | 312,298 | 272,507 |
| TOTAL EQUITY AND LIABILITIES | 1,537,756 | 1,468,886 |
DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL REPORTS
The manager responsible for preparing the company's financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.
