(Alliance News) - On Thursday, Recordati Spa's board of directors reviewed and approved preliminary consolidated results for fiscal year 2023, which closed with a net income of EUR389.2 million, up 25 percent from 2022, driven by strong operating performance and lower nonrecurring costs than in 2022. This figure also has a revenue margin of about 19 percent.

Adjusted net income is EUR524.6 million, up 11 percent from the previous year, above the guidance range.

Consolidated net revenues in 2023 were EUR2.08 billion up 12 percent from 2022, in line with the upper end of the guidance range revised upward last May, thanks to "excellent business performance in both the Specialty & Primary Care and Rare Diseases segments, which continue to post double-digit growth, at constant exchange rates," the note said.

The negative foreign exchange impact, which increased in the second half of the year, amounted to EUR99.9 million in 2023, down 5.4 percent on 2022, mainly impacting the Specialty & Primary Care segment; of this EUR60.1 million was due to the devaluation of the Turkish lira, offset by a higher inflation price.

Ebitda amounted to EUR769.6 million in 2023, up 14% from 2022, and accounting for 37% of revenues compared to 36% in 2022, reflecting higher operating leverage.

Free cash flow was EUR456.0 million in 2023, up EUR17.0 million from the previous year, absorbing the increase in working capital due to higher revenues and higher interest expenses.

Net debt as of December 31, 2023 was EUR1.58 billion, compared with net debt of EUR1.42 billion as of December 31, 2022.

As for 2024, the company "expects the strong momentum of the business to continue," with net revenues between EUR2.26 billion and EUR2.32 billion, Ebitda between EUR830 million and EUR860 million, margin of about 37 percent, and adjusted net income between EUR550 million and EUR570 million, margin of about 24.5 percent.

With the current portfolio, the group expects to achieve revenues in excess of EUR2.4 billion in FY2025, maintaining an Ebitda margin of 37 percent.

Rob Koremans, chief executive officer of Recordati, commented, "Given the strong business performance, we are confident that we will achieve our targets for 2024 and 2025 and continue to create sustainable value for all our stakeholders."

Recordati's stock rises 0.5 percent to EUR52.32 per share.

By Chiara Bruschi, Alliance News reporter

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