March 06, 2012 --
- In 2011 Siegfried achieved a gratifying result in a demanding market
- The company succeeded to distinctly increase sales and profitability and to
achieve a net profit.
- After two years without paying a dividend, the Board of Directors proposes
paying of CHF 1.00 per share.
- Without the strong appreciation of the Swiss franc compared to the Euro and
the US dollar, Siegfried’s key performance indicators would have been clearly
- In 2011, Siegfried further strengthened its competitive situation and established
itself as a flexible, reliable and competent supplier and outsourcing partner of
the Life Science industry
- The company aims to further strengthen its competitive situation and make
significant progress in terms of cost structure and earnings power by means of
three strategic priorities: backward integration in Asia, entry into sterile filling,
and enhancement of the technological basis
- Siegfried expects continued improvement in 2012 of its key operating
The Siegfried Group reported gratifying results for the 2011 financial year despite
a demanding market environment. The company’s sales grew also in terms of
Swiss francs and profitability increased distinctly. Moreover, Siegfried returned to
a net profit. Based on these results and on the sound business development, the
Board of Directors proposes to pay out CHF 1.00 per share following two years
without dividend payout.
The Siegfried Group generated sales of CHF 328.1 million for the 2011 financial year,
representing a growth of 4.4% in terms of Swiss francs. In local currencies, sales grew
by 15.6%. Earnings before interest, taxes, depreciation and amortization (EBITDA)
amounted to CHF 41.0 million (+ 11.9%), corresponding to an EBITDA margin of 12.5%.
Decisive growth (+ 116%) was achieved in earnings before interest and taxes (EBIT),
which amounted to CHF 11.6 million, or 3.5% of sales. Adjusted for currencies, Siegfried
reports an EBIT margin of 4.6%. The resulting net profit of CHF 9.6 million corresponds
to earnings per share of CHF 2.61. Without the strong appreciation of the Swiss franc,
Siegfried’s key indicators would have been clearly more positive. Net working capital
remained at a low CHF 122.2 million. The 14.5% rate of return on capital employed
(ROCE) shows that a good performance was achieved with committed resources. At
year-end Siegfried reported cash holdings of CHF 52.6 million.
In view of the good results and the sound financial situation, the Board of Directors
proposes paying of CHF 1.00 per registered share from the capital contribution reserve.
Rudolf Hanko, CEO, said: “In 2011, Siegfried made clear operational progress and
achieved a gratifying result. We have returned to profitability, improved our market position
and increased efficiency at high capacity utilization. Moreover, we are working on our
strategic targets at full speed”.
All production facilities operating at high capacity utilization
Siegfried achieved growth in exclusive synthesis and in the production of portfolio active
pharmaceutical ingredients (controlled substances). Sales in both fields each grew by
about 10% in Swiss francs or approximately 20% in local currencies. Siegfried reported a
sales decline of 18% (or 11% in local currencies) in the field of finished drugs as some of
the main pillars of sales in this field are reaching the end of their product life cycle, and
their sales contribution has not yet been fully substituted by new products. However,
renewal of the portfolio is running on schedule.
The gratifying sales development is reflected by high capacity utilization at all Siegfried
production facilities. In Zofingen, large segments of production switched to a 7-day/24-hour
cycle, and in Pennsville, USA, the production plants were in operation six days a week on
average. In Malta, the workforce was increased considerably in view of the introduction of
an important product in 2012. Thanks to across-the-board cost discipline, the rising sales
had a correspondingly positive effect on the financial results.
Continued improvement of earnings situation expected
Within the parameters of strategy implementation, Siegfried will continue to focus on
three areas to secure its competitive position over the long term: backward integration in
Asia, entry into sterile filling, and enhancement of the technological basis.
Despite demands made by the market and a continuing pressure on prices, Siegfried
expects sales in 2012 in local currencies to develop at a stable rate. Higher capacity
utilization and increased efficiency will further improve operating results.
Changes in the Board of Directors
Thomas Staehelin, Vice-Chairman of Siegfried’s Board of Directors, will resign from the
Board on the occasion of the annual general meeting scheduled for April 20, 2012. After
21 years of service, he will not stand for reelection. All other Board members will stand
for reelection for a further one-year period of office. The Board of Directors will propose
no further nominations.
For further information:
Michael Hüsler, CFO
Tel. +41 (0)62 746 11 35
Peter A. Gehler, Head Corporate Center
+41 (0)62 746 11 44
Siegfried Holding AG
Untere Brühlstrasse 4
Tel. +41 (0)62 746 11 11
Fax +41 (0)62 746 11 03
The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in
Switzerland, Malta and the USA. At the end of 2011, Siegfried employed approximately 700 employees and
reported annual sales of CHF 328 million. 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
manufactures active pharmaceutical ingredients for the research-based pharmaceutical industry as well as the
corresponding intermediate steps and controlled substances, and provides development and production
services for drugs in finished dosage forms.