• The 2014 financial year was characterized by declining sales and a considerably higher EBITDA margin.
• Earnings before interest taxes, depreciation and amortization (EBITDA) are reported at CHF 58.8 million, corresponding to an EBITDA margin of 18.6% (2013: 17.5%).
• Sales are reported at CHF 315.3 million (2013: CHF 375 million).
• Operating profit (EBIT) of CHF 34.0 million represents an EBIT margin of 10.8%. In the year under review, Siegfried reported net profit of CHF 38.6 million.
• Siegfried implemented significant strategic steps at various sites. In the year under review, after the acquisition of Hameln Pharma, Siegfried’s workforce grew by almost half to approximately 1,400 employees (FTE).
• The company aims to take an active role in the ongoing consolidation of the outsourcing industry.
• The Board of Directors will recommend to the General Meeting the unchanged payout the shareholders of CHF 1.50 per share.
• In 2015, the Siegfried Group expects to grow in terms of EBITDA in the low-double-digit percentage range.
Despite declining sales, the Siegfried Group improved the EBITDA margin by 1.1 percentage points. Earnings before interest taxes, depreciation and amortization (EBITDA) are reported at CHF 58.8 million and sales at CHF 315.3 million. EBIT of CHF 34.0 million corresponds to an EBIT margin of 10.8%.
In the year under review, the company reported net profit of CHF 38.6 million. Owing to the capitalization of tax losses carried forward, net profit is reported a little higher than EBIT.
A high number of new projects
Concerning the acquisition of new projects, the 2014 financial year was gratifying. The number of customer requests and the level of orders for new development projects clearly exceeded the previous years’ levels. While in 2012 Siegfried acquired 17 new projects, the number rose to 22 in 2013 and to 35 in the year under review. The economic value of the new projects increased considerably and even doubled compared with the previous year.
Focus on costs
In the year under review, management put its focus on continually increasing the share of variable costs. Thus, the segment of employees with temporary employment contracts has grown in recent years. In 2010, several in-process activities were outsourced in areas such as maintenance, security, provision, and waste disposal. These measures paid out in 2014 as Siegfried was able to adjust expenses short-term.
Major investments at several sites
Siegfried made significant investments in the year under review of CHF 140 million. Despite the substantial outlay, the company reports net debt of only CHF 85 million, not considering financial assets of about CHF 20 million.
Strategy implementation on target
The Transform strategy comprises three different streams, and significant projects were implemented in all three streams in the year under review:
• In the “Backward Integration” stream, construction of the new facility in Nantong was advanced. Operating approval for the pilot plant and numerous other approvals and licenses are on hand. An inspection by the US-FDA regulatory authority is expected for the second half of the current year.
• In the “Forward Integration” stream, a quantum leap was made thanks to the acquisition of Hameln Pharmaceuticals GmbH and Pharma RDS GmbH (R&D organization). The new Hameln site disposes of a large capacity with eight production lines which complement the existing, highly specialized, yet small, plant for sterile filling in Irvine, USA. Some 400 new employees (FTE) joined the Siegfried Group. The acquisition will serve to strengthen Siegfried’s market position in the finished dosage forms segment.
– In the “New Technologies” stream an important project was brought to completion. A new, state-of-the-art spray dryer was inaugurated in Pennsville mid-year.
In Zofingen, a new production building is under construction which will be ready for operation mid-year. The technical design of the plant corresponds to that in Nantong, which will simplify product transfers to and from Nantong, also from a regulatory point of view.
A new administration building constructed in Zofingen by an outside investor ensures state-of-the-art administration and work procedures.
Industry consolidation
In recent years, significant consolidation movements were observed in the industry. This type of consolidation will continue as companies that do not wish to confine themselves to niche products will have to show sales of CHF 500 – 600 million in order to maintain market flexibility. Siegfried will continue to take an active role in this consolidation process.
2015: growth anticipated
The Siegfried Group expects to grow in the current year in the low-double-digit percentage range regarding EBITDA.
For further information:
Media:
Peter Gehler, Chief Communications Officer
peter.gehler@siegfried.ch
Phone +41 (0)62 746 11 48
Fax +41 (0)62 746 11 03
Financial Analysts:
Michael Hüsler, CFO
michael.huesler@siegfried.ch
Phone +41 (0)62 746 11 35
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
www.siegfried.ch
About Siegfried
The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in Switzerland, Germany, China, Malta and in the USA. At the end of 2014, Siegfried reported annual sales of CHF 315 million and employs at the time being approximately 1400 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 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 including sterile filling.
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• Earnings before interest taxes, depreciation and amortization (EBITDA) are reported at CHF 58.8 million, corresponding to an EBITDA margin of 18.6% (2013: 17.5%).
• Sales are reported at CHF 315.3 million (2013: CHF 375 million).
• Operating profit (EBIT) of CHF 34.0 million represents an EBIT margin of 10.8%. In the year under review, Siegfried reported net profit of CHF 38.6 million.
• Siegfried implemented significant strategic steps at various sites. In the year under review, after the acquisition of Hameln Pharma, Siegfried’s workforce grew by almost half to approximately 1,400 employees (FTE).
• The company aims to take an active role in the ongoing consolidation of the outsourcing industry.
• The Board of Directors will recommend to the General Meeting the unchanged payout the shareholders of CHF 1.50 per share.
• In 2015, the Siegfried Group expects to grow in terms of EBITDA in the low-double-digit percentage range.
Despite declining sales, the Siegfried Group improved the EBITDA margin by 1.1 percentage points. Earnings before interest taxes, depreciation and amortization (EBITDA) are reported at CHF 58.8 million and sales at CHF 315.3 million. EBIT of CHF 34.0 million corresponds to an EBIT margin of 10.8%.
In the year under review, the company reported net profit of CHF 38.6 million. Owing to the capitalization of tax losses carried forward, net profit is reported a little higher than EBIT.
A high number of new projects
Concerning the acquisition of new projects, the 2014 financial year was gratifying. The number of customer requests and the level of orders for new development projects clearly exceeded the previous years’ levels. While in 2012 Siegfried acquired 17 new projects, the number rose to 22 in 2013 and to 35 in the year under review. The economic value of the new projects increased considerably and even doubled compared with the previous year.
Focus on costs
In the year under review, management put its focus on continually increasing the share of variable costs. Thus, the segment of employees with temporary employment contracts has grown in recent years. In 2010, several in-process activities were outsourced in areas such as maintenance, security, provision, and waste disposal. These measures paid out in 2014 as Siegfried was able to adjust expenses short-term.
Major investments at several sites
Siegfried made significant investments in the year under review of CHF 140 million. Despite the substantial outlay, the company reports net debt of only CHF 85 million, not considering financial assets of about CHF 20 million.
Strategy implementation on target
The Transform strategy comprises three different streams, and significant projects were implemented in all three streams in the year under review:
• In the “Backward Integration” stream, construction of the new facility in Nantong was advanced. Operating approval for the pilot plant and numerous other approvals and licenses are on hand. An inspection by the US-FDA regulatory authority is expected for the second half of the current year.
• In the “Forward Integration” stream, a quantum leap was made thanks to the acquisition of Hameln Pharmaceuticals GmbH and Pharma RDS GmbH (R&D organization). The new Hameln site disposes of a large capacity with eight production lines which complement the existing, highly specialized, yet small, plant for sterile filling in Irvine, USA. Some 400 new employees (FTE) joined the Siegfried Group. The acquisition will serve to strengthen Siegfried’s market position in the finished dosage forms segment.
– In the “New Technologies” stream an important project was brought to completion. A new, state-of-the-art spray dryer was inaugurated in Pennsville mid-year.
In Zofingen, a new production building is under construction which will be ready for operation mid-year. The technical design of the plant corresponds to that in Nantong, which will simplify product transfers to and from Nantong, also from a regulatory point of view.
A new administration building constructed in Zofingen by an outside investor ensures state-of-the-art administration and work procedures.
Industry consolidation
In recent years, significant consolidation movements were observed in the industry. This type of consolidation will continue as companies that do not wish to confine themselves to niche products will have to show sales of CHF 500 – 600 million in order to maintain market flexibility. Siegfried will continue to take an active role in this consolidation process.
2015: growth anticipated
The Siegfried Group expects to grow in the current year in the low-double-digit percentage range regarding EBITDA.
For further information:
Media:
Peter Gehler, Chief Communications Officer
peter.gehler@siegfried.ch
Phone +41 (0)62 746 11 48
Fax +41 (0)62 746 11 03
Financial Analysts:
Michael Hüsler, CFO
michael.huesler@siegfried.ch
Phone +41 (0)62 746 11 35
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
www.siegfried.ch
About Siegfried
The Siegfried Group is active worldwide in the field of Life Sciences with production facilities located in Switzerland, Germany, China, Malta and in the USA. At the end of 2014, Siegfried reported annual sales of CHF 315 million and employs at the time being approximately 1400 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 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 including sterile filling.
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