Regulated information
Waregem (Belgium) / Rotterdam (The Netherlands)1, 4 August 2015

REBITDA margin increased to 26.9% of turnover
Focus on Specialty Pharma Services and Trademarks

Key points for the first six months of 2015:

  • Turnover increased 16.6% to € 243.8 million
  • Strong organic turnover growth at Fagron Specialty Pharma Services and Fagron Trademarks
  • Gross margin increased 21.3% to € 161.3 million
  • REBITDA2 increased 17.9% to € 65.6 million or 26.9% of turnover
  • Refinement of strategy:
    • Focus on Fagron Specialty Pharma Services and Fagron Trademarks
    • Optimization of product portfolio and production process at Fagron Essentials
    • Organizational alignment with refined strategy

Ger van Jeveren, CEO of Fagron: "We once again achieved a solid result in the first six months of 2015. REBITDA increased by 17.9% to € 65.6 million with turnover growth of 16.6%. The organic turnover growth of 25.4% at Fagron Specialty Pharma Services and of 12.7% at Fagron Trademarks was impressive. The turnover of Fagron Essentials decreased 2.4% in the first six months of 2015. This decrease was due to the phasing out of non-strategic, low-margin products combined with declining sales of pharmaceutical raw materials as the result of a change in the reimbursement system in the United States.

In the second quarter of 2015, the Board of Directors and the Executive Committee further refined Fagron's strategy. The starting points in this were Fagron's unique positioning, its ambitions, and the enormous growth potential of Fagron Specialty Pharma Services and Fagron Trademarks. The market for Fagron Specialty Pharma Services in the United States has a size of approximately US$ 8 billion, of which 85% is still realized in hospitals. This rapidly growing market is driven by increasingly stricter legislation and regulations which are prompting more and more hospitals to outsource their sterile compounding to parties like Fagron. In Europe and South America we see a situation similar to that in the United States. In June and July 2015, we implemented changes in our organization that enable us to make maximum use of the enormous growth potential of Fagron Specialty Pharma Services and Fagron Trademarks.

We are very confident for the future, also thanks to our intensified focus on Fagron Specialty Pharma Services and Fagron Trademarks. We confirm our outlook for 2015 and expect to realize turnover of at least € 500 million3, with a REBITDA4 margin of 26%."

1 This press release was sent out by Fagron NV and Fagron BV
2 EBITDA before non-recurrent result
3 Based on constant exchange rates (EUR/USD 1.250 and EUR/BRL 3.100)
4 EBITDA before non-recurrent result

Please open the link below for the press release:

Turnover increased 16.6% to € 243.8 million:
http://hugin.info/138311/R/1943380/703632.pdf

Please open the link below for the interim financial statements:

Interim financial statements first semester 2015:
http://hugin.info/138311/R/1943380/703629.pdf


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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Fagron NV via Globenewswire
HUG#1943380