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Siegfried With Clearly Higher Sales and Profitability

3/5/2013 10:41:11 AM

March 05, 2013 -- The Siegfried Group reports sales of CHF 367.8 million for the 2012 financial year, repre- senting growth of 12.1% in terms of Swiss francs, or 10.0% in local currencies. Earnings be- fore interest, taxes and depreciation (EBITDA) amounted to CHF 45.4 million (+ 24.1%), cor- responding to an EBITDA margin of 12.3%. Earnings before interest and taxes (EBIT) grew by 43.5% to CHF 17.9 million, representing an EBIT margin of 4.9% barely below target.

Operating cash flow of CHF 54.3 million (+ 85.1%) emphasizes the good state of the compa- ny. Net current assets of CHF 136.1 million remained at a low level. Return on capital em- ployed (ROCE) of 19.4% shows that a good performance can be achieved with tied-up funds. Moreover, on the cut-off date Siegfried held net cash of CHF 25.8 million, or CHF 46.2 million when taking into consideration treasury stock. The equity ratio is reported at 66.3%.

The resulting net profit for the year under review amounts to CHF 20.9 million. This item in- cludes a positive fiscal effect of CHF 5.7 million which, to a large degree, reflects the capitali- zation of losses carried forward in the United States. In view of the good results and the sound financial situation, the Board of Directors will propose to the Shareholders’ Meeting a pay-out of CHF 1.20 per share from reserves from capital contributions.

Rudolf Hanko, CEO: “The continuation of positive trend shows that Siegfried is on the right track. Continued progress in implementing strategy has created the conditions for sustained growth of sales and profitability.”

Consistent implementation of strategy

In 2012, Siegfried consistently strengthened its market position by improving cost structure, expanding capacity, bolstering business with finished dosage forms and widening its techno- logical base. In June 2012, Siegfried acquired Alliance Medical Products, Inc. (AMP), which is specialized in the sterile filling of drugs. In the seven months of inclusion in the Siegfried Group, AMP contributed CHF 11 million to sales. The company’s integration is moving for- ward according to schedule. Furthermore, Siegfried acquired the rights for a property in an industrial park in Nantong, southern China, where the company will begin construction of a production plant in the current year. In Zofingen, Siegfried put into operation a suite for the development of high potency drugs, and plans for the modernization of parts of the produc- tion facility have made significant progress. Moreover, the exchange of land put into effect in 2012 will facilitate the future expansion of the location.

Challenges of the pharmaceutical industry provide opportunities for Siegfried

Siegfried proved to be a reliable, flexible and competent outsourcing partner of the pharma- ceutical industry, and the company aims to further expand this attractive position. The unique combination of chemical and pharmaceutical expertise and capacity put Siegfried in a strate- gically advantageous situation to achieve this goal.

The pharmaceutical industry is currently confronted with a plethora of challenges. Important mainstays of sales are losing patent protection without the ability to immediately compensate for the resulting sales loss with follow-up products. At the same time, drug prices have come under pressure all over the globe as deeply indebted governments recognize savings poten- tial in this field. Owing to the present competitive situation, this is especially true also for the generics industry. In this demanding situation, Siegfried takes on an important role as an outsourcing partner. On the one hand, the company allows its customers to temporarily or completely postpone costly investments in phases of economic insecurity and thereby to fol- low a capital-friendly asset policy. On the other hand, depending on the regulatory situation, Siegfried can absorb short-term bottlenecks and help its customers ensure delivery at all times.

Rudolf Hanko: “Increasing quote requests show that interest in cooperating with an outsourc- ing partner is growing and that Siegfried is well positioned to benefit from this development. Siegfried expects sales for 2013 to increase slightly and profitability to continue.”

The Annual Report 2012 is available under the following link:

For further information:

Financial Analysts:

Michael Hüsler, CFO

Tel. +41 (0)62 746 11 35

Mobile +41 (0)79 279 94 52

Fax +41 (0)62 746 11 03


Peter Gehler, Head Corporate Center

Tel. +41 (0)62 746 11 44

Mobile +41 (0)79 416 41 16

Fax +41 (0)62 746 11 03

Siegfried Holding AG

Untere Brühlstrasse 4

CH-4800 Zofingen

Tel. +41 (0)62 746 11 11

Fax +41 (0)62 746 11 03

About Siegfried

The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in Switzer- land, Malta and the USA. At the end of 2012, Siegfried reported annual sales of CHF 368 million and employs at the time being approximately 850 employees. Siegfried Holding AG is listed on the Swiss Exchange (SIX: SFZN). Siegfried is active in both the primary and secondary production of drugs. The company develops and manufac- tures active pharmaceutical ingredients for the research-based pharmaceutical industry as well as the corre- sponding intermediate steps and controlled substances, and provides development and production services for drugs in finished dosage forms including sterile filling.

Cautionary Statements Regarding Forward-looking Statements

This press release may contain forward-looking statements based on current assumptions and forecasts made by Siegfried Group management and other information currently available to the Siegfried Group. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Siegfried Holding AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.

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