- Consolidated revenues € 587.9 million, +9.1%.
- EBITDA(1) € 188.1 million, +14.8%
- Operating income € 170.2 million, +17.2%.
- Net income € 122.7 million, +18.9%.
- Net financial position(2): net debt of € 164.4 million.
- Shareholders' equity € 929.1 million.
- Full year 2016 targets increased: sales of around € 1,140 million, operating income around € 325 million and net income around € 230 million.
Milan, 28 July 2016 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first half 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). The independent auditors' report on the consolidated condensed half-year financial statements will be available within the legal deadline 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 half 2016 are € 587.9 million, up by 9.1% compared to the same period of the preceding year. International sales grow by 10.0%.
- EBITDA(1), at 32.0% of sales, is € 188.1 million, an increase of 14.8% over the same period of the preceding year.
- Operating income, at 29.0% of sales, is € 170.2 million, an increase of 17.2%. This result includes non recurring expenses of € 8.6 million due to ancillary costs related to the recent acquisition of Italchimici S.p.A. and accrued charges for the organizational restructuring of the company.
- Net income, at 20.9% of sales, is € 122.7 million, an increase of 18.9% over the first half of 2015.
- Net financial position(2) at 30 June 2016 records a net debt of € 164.4 million. During the period the acquisition of the Italian company Italchimici S.p.A. and the distribution of the 2015 dividend balance accounted for a total amount € 188.3 million. Shareholders' equity increases to € 929.1 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.
Corporate development news
During May 100% of the share capital of Italchimici S.p.A., an Italian pharmaceutical company with operational headquarters in Milan was acquired. The value of the transaction (enterprise value) was of around € 130 million and was be funded from existing liquidity.
Italchimici, with over 40 years of history and revenues in 2015 of € 46 million, is a consolidated firm in the Italian pharmaceutical market with well-known products. The company offers therapeutical solutions mainly in the gastroenterological and respiratory areas which consist of both pharmaceutical products as well as food supplements and medical devices to improve the health and well-being of patients. The main brands in its extensive product portfolio are Reuflor, Peridon and Lacdigest in the gastroenterological offering and Aircort among the respiratory products.
Management Comments
"The first half results confirm the sustained growth of the group with revenues and profitability increasing significantly", declared Giovanni Recordati, Chairman and CEO. "Furthermore, the group's business performance during July was in line with the first half and therefore targets for the full year 2016 were reviewed upwards of those announced on 5 May 2016. Taking into account the consolidation of the two recently acquired companies, Italchimici S.p.A. in Italy and Pro Farma AG in Switzerland, expectations are now to achieve sales of around € 1,140 million, operating income of around € 325 million and net income of around € 230 million."
Conference call
Recordati will be hosting a conference call today 28 July 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.
