3Q

RESULTS

3rd Quarter 2023

TABLE OF CONTENTS

0 1 E A R N I N G S 3 Q 2 0 2 3

0 2 I N C O M E S T A T E M E N T A N D B A L A N C E

0 3 2 0 2 3 P E R S P E C T I V E S

0 4 R J F S H A R E T R E N D S

3Q 2023

R E S U L T S

01

EARNINGS 3rd QUARTER 2023

REIG JOFRE increased 22% in revenue and 24% in EBITDA in the closing of 2023

SALES

+ 22%

€237.3 M

EBITDA

+ 24%

€26.2 M

CONSOLIDATED

+ 84%

EARNINGS

  • The sales amount accumulated by September 2023 reaches 237 million euros, 22% above the same period of 2022. The medicinal products division, Speciality Pharmacare, leads this growth, followed by the Pharmaceutical Technologies and Consumer Healthcare divisions.
  • Spain represents 45% of revenues, with a sales growth at a rate of 22%. This is due to the increased manufacturing capacity in injectables and the capacity reserve program of the European Union, the growth of the Osteoarticular range, and the progression of OTC products in Consumer Healthcare.
  • The Speciality Pharmacare division shows the highest growth, 34%, especially driven by the progression of the Osteoarticular range in Europe.
  • Reig Jofre's profitability grew above the income threshold, with a consolidated EBITDA of 26.2 million euros, 24% higher than the previous year, placed this magnitude at 11% above sales.
  • The good financial result, driven by the effect of the exchange rate and the contribution of earnings from investee companies, places Consolidated Earnings at 7.8 million euros, which represents an increase of 84% compared to 2022.
  • In the first nine months of 2023, the industrial investments made are 5.6 million euros, a lower level than previous periods, which reflects the focus of the industrial area on technological improvements and the quality and efficiency of the processes, once the planned projects of capacity increase are implemented.

€7.8 M

4

INCOME BY BUSINESS UNIT

PHARMACEUTICAL

TECHNOLOGIES

Antibiotics

Injectable / Freeze-dried products

44%

104,4

M i l l i o n s o f €

+19%

  • The hospital product division grew by 19%. It continued to be driven by international markets, especially Asia, and is already collecting income derived from the EU capacity reserve program.
  • Antibiotics improved the growth rate of the first semester, reaching a 14% increase in sales.
  • Injectable products grew by 21% thanks to the capacity of the new Barcelona plant.
  • International sales

SPECIALITY

PHARMACARE

Osteoarticular

Dermatology

32%

76,0

M i l l i o n s o f €

+34%

  • The prescription product division continued to be the one with the greatest growth, with a 34% growth (it grew by 7% in 2022).
  • The Osteoarticular range continued to grow over 40%, while Dermatology is now growing by two- digit figures with a 12% increase in sales.
  • On a geographical level, the highest growth continued to occur in Europe and, above all, in Poland and Sweden.

CONSUMER

HEALTHCARE

OTC

Energy

Stress and sleep

Weight control

56,8

24%

Beauty

M i l l i o n s o f

€

+11%

  • The Consumer Healthcare division maintained good progress. Spain grew more than 18%, while France, its main geographic market, grew by 9%.
  • The Forté Pharma brand of Food Supplements represents more than 70% of revenue. Overall, it grew by 11% in its main markets (France, Belgium and Spain), and in online channels.
  • OTC products, in the respiratory and ENT product ranges, grew by 16%, after 2022 in which they grew by 21%.

PHARMACEUTICAL 57%

TECHNOLOGIESInternational

SPECIALITY

37%

CONSUMER

74%

PHARMACARE

HEALTHCARE

5

International

International

SALES BY GEOGRAPHICAL AREA

Spain

Eupean

45%

Union

36%

Oceania

Rest of

Europe

1%

America

Africa Asia 8% 7%

1%

2%

11%

CDMO

SPAIN

Rest of

Rest of

EUROPE

WORLD

45%

43%

12%

€106.7 M

€101.5 M

€29.1 M

+ 22%

+ 14%

+ 51%

  • The Spanish market continues to grow above 20% from the 12% it reached in 2022. The injectable products area is growing significantly due to the greater manufacturing capacity of the new Barcelona plant and the impact of the EU capacity reserve program. Growth in osteoarticular product is also an important factor.
  • The rest of the European markets, with a 14% growth, owe their growth mainly to our subsidiary in Poland and also to the business growth in the Swedish subsidiary.
  • Sales in the rest of the world increased by 51%, after 2022 when they experienced a decline of 13%. The Asian markets continue to be the main drivers of this progression, representing 8% of revenue this year.

Contract Development Manufacturing Organisation (Third-party manufacturing)

6

INCOME STATEMENT

AND BALANCE

02

Trends 2023/2022

INCOME STATEMENT

3Q 2023

thousand euros

30/09/2023

30/09/2022

Turnover

237.282

195.257

Procurements

-103.077

-83.238

Changes in inventories

3.133

3.662

Gross margin

137.337

115.681

Work carried out for fixed assets

1.378

2.577

Other operating income

178

105

Personnel expenses

-58.226

-52.983

Other operating expenses

-54.425

-44.187

EBITDA

26.243

21.192

Depreciation and amortization

-17.304

-15.079

Govern. grants for non-financial assets and others

175

85

Impairment and results on disposals

-326

3

Operating income

8.787

6.201

Financial result

-534

-1.429

Results from entities accounted by the equity method

1.006

268

Profit before taxes

9.260

5.040

Income tax

-1.389

-756

NET RESULT

7.871

4.284

  • The 22% growth in Sales is achieved with a gross margin of 58%, at the closing levels of the previous year, despite the increases in material costs, thanks to a more favourable product mix.
  • The activation level of R&D (work carried out for fixed assets) is practically half the figure for the previous year.
  • Personnel expenses showed lower growth than income and are 10% above the same period in 2022. This increase is associated with technical personnel due to greater industrial activity and the development of commercial networks in Europe.
  • Other operating expenses increased by 23%, due on the one hand to the increase in energy costs and other production expenses, and on the other hand to commercial actions and marketing in the Speciality Pharmacare and Consumer Healthcare areas.
  • EBITDA reached 26.2 million euros, which represents a growth of 24% over the previous year. The EBITDA/Sales ratio stands at 11.1%, compared to 10.8% in the same period of 2022.
  • Amortisation expense grows by 15% in these nine months, but the growth occurs in the first semester. As of the third quarter, this expense is already flat due to the lower pace of new investments.
  • The better financial result due to the positive progress of the exchange rate and the incorporation of 50% of the profit of JV Syna Therapeutics also had a positive impact on the result.
  • The earnings before taxes thus reaches 9.2 million euros, which represents an exceptional increase of 84%

8

BALANCE

3Q 2023

thousand euros

30/09/2023

30/09/2022

ASSETS

Goodwill

28.775

29.485

Other intangible assets

65.166

73.196

Property, plant and equipment

88.679

91.549

Investments in equity-accounted investees

4.622

2.216

Non-current financial assets measured at fair value

1.220

1.202

Other non-current financial assets

408

418

Deferred tax assets

10.665

10.621

TOTAL NON-CURRENT ASSETS

199.535

208.687

Inventories

56.043

50.516

Trade and other receivables

61.242

46.020

Current tax assets

5.268

4.844

Other current financial assets

450

1.088

Other current assets

2.435

5.472

Cash and cash equivalents

13.909

12.084

TOTAL CURRENT ASSETS

139.346

120.025

TOTAL ASSETS

338.881

328.712

  • As in previous closings, the drop in non-current assets in 2023 reflects a more moderate level of investment and increasing depreciation of both property, plant and equipment and intangible assets (brands and products acquired, as well as R&D projects).
  • Stock levels and especially trade debtors grew due to growth in sales. Working capital reaches sales levels of 22% compared to 20% at the end of 2022, although this ratio is expected to be reduced due to seasonality at the end of the year.

INVESTMENT 3Q23 7,0

Millions of €

R&D ACTIVATION

1.4 M

CAPEX

INDUSTRIAL

5.6 M

  • The industrial investments in technology and capacity increase are reduced compared to previous years, as planned, to reach the necessary recurring capex level, around 8 million euros/year.
  • The R&D projects have been activated for a value of 1.4 million euros, although the total expense dedicated by the Group remains above 5% of consolidated income.

9

BALANCE

3Q 2023

thousand euros

30/09/2023

30/09/2022

TOTAL EQUITY

202.272

191.107

Capital grants

3.467

3.916

Provisions

0

201

Financial liabilities with credit institutions

16.885

28.565

Lease liabilities

9.551

13.176

Other financial liabilities

6.222

6.475

Deferred tax liabilities

2.619

2.856

TOTAL NON-CURRENT LIABILITIES

38.744

55.190

NET FINANCIAL DEBT

Debt|EBITDA

3Q23closing

59.5 Millions of €

closing

1.7

3Q23

2022

62.3

2022

2.0

closing

closing

Millions of €

Provisions

0

41

Financial liabilities with credit institutions

34.398

22.504

Lease liabilities

4.967

4.858

Other financial liabilities

1.390

609

Liabilities from contracts with customers

4.748

9.954

Trade and other payables

45.404

40.320

Current tax liabilities

6.850

4.035

Other current liabilities

109

95

TOTAL CURRENT LIABILITIES

97.865

82.415

FINANCIAL DEBT

73.4 M

LEASE DEBT APPLICATION IFRS 16

DEBT FROM CREDIT INSTITUTIONS AND OTHERS

9.2

64.2

M

M

TOTAL EQUITY AND LIABILITIES

338.881

328.712

  • Non-currentliabilities decreased due to the reduction in the residual term of the debt. This debt is mainly linked to inorganic growth and the new injectables plant.
  • Current liabilities increased compared to the closing of the previous year. The increase in sales and manufacturing levels implies a growth in working capital that also entails greater use of short-term debt.
  • The Net Financial Debt continued to decrease, reaching 59.5 million euros, below the 60 million for the first time since 2Q 2021. The Debt/EBITDA ratio reached 1.7 times compared to the ratio of 2.0 at which it closed in 2022.
  • The repayment of debt associated with the investments made between 2018 and 2021, and the moderation of investment levels made it possible to reach this low level of indebtedness.

10

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Laboratorio Reig Jofre SA published this content on 28 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 10:39:06 UTC.