- Momentum intact and new sales record set
- EBIT margin climbs to 19.1%, EBITDA margin to 27.4%
- Significantly faster net income growth of 29.4% to 41.2 million CHF
- Expansion of production capacity, new building for R&D at company headquarters
- Workforce grows, now numbers more than 1'000
- Increase in dividend from 2.25 to 2.50 CHF proposed
- Excellent order situation and better capacity utilization
In 2016 Bachem strengthened its international leadership in the peptides market by investing in state-of-the-art production facilities at its US site in Vista and in a new research and development building at company headquarters in Switzerland. Sales of active pharmaceutical ingredients remained strong. Sales of patented new chemical entities (NCEs), a driver of Bachem's future success, increased by 54%. The number of development projects under way, which serves as an indicator of future sales growth, rose slightly to 247 (241 in the previous year). In the geographic breakdown of sales, the North America region increased its share of total sales to 36.3% (previous year 35.0%) following the completion of the capacity expansion in the US. The percentage of sales generated in Asia passed the 10% mark in 2016. This region offers considerable growth potential and Bachem Group is therefore planning to expand its activities in Asian markets.
Solid financial stabilityBased on these strong results and in view of the company's stable financial position with a high equity ratio of 73.6%, the Board of Directors is proposing an increase in the dividend to 2.50 CHF (previous year: 2.25 CHF).
Leadership in core business strengthenedBachem intends to continue delivering superior performance with the support of its highly-qualified and dedicated employees. Strict cost management and selective investments in innovation will likewise be vital for success. Management is confident that it can achieve steady local-currency sales growth of 6-10% p.a. in the years ahead, in line with its long-term projections, while continuing to give precedence to sustainable profit growth. Besides the targeted organic growth, Bachem will be examining opportunities for strengthening its leadership in its core peptide business through alliances or acquisitions. Bachem remains strongly committed to expanding its leadership role and to its customers around the world as a trailblazing business partner.
The 2016 Annual Report can be downloaded from the following website: http://annualreport.bachem.com
Financial CalendarApril 24, 2017 Annual General Meeting April 28, 2017 Payout Date for Dividend
August 25, 2017 Publication of Half-Year Report 2017
About BachemBachem is a listed, technology-based company focused on peptide chemistry. The company provides a full range of services to the pharma and biotech industries. It specializes in the development of innovative, efficient manufacturing processes and the reliable production of peptide-based active pharmaceutical ingredients. A comprehensive catalog of biochemicals and exclusive custom syntheses for research labs complete the service portfolio. Headquartered in Switzerland with subsidiaries in Europe and the US, the group has a global reach with more experience and know- how than any other company in the industry. Bachem shows total commitment to quality, innovation and partnership.
Bachem Pioneering Partner for Peptides For more information: Bachem Holding AG Stephan Schindler, CFO Tel.: +41 58 595 2021Fax: +41 58 595 2043
www.bachem.com ir@bachem.com
Bachem Holding AG published this content on 17 March 2017 and is solely responsible for the information contained herein.
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