March 10, 2011 -- Siegfried Holding AG (SIX: SFZN) reports sales of CHF 314.4 million for the 2010 financial year, corresponding to a growth of 11.1% over the previous year, or of 14.2% in local currencies. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 11.5% to CHF 36.7 million (2009: CHF 32.9 million), representing an 11.7% EBITDA margin. EBIT amounted to CHF 5.4 million, following an operating loss of CHF 14.3 million the previous year.
Siegfried Holding AG (SIX: SFZN) reports sales of CHF 314.4 million for the 2010 financial year, corresponding to a growth of 11.1% over the previous year, or of 14.2% in local currencies. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 11.5% to CHF 36.7 million (2009: CHF 32.9 million), representing an 11.7% EBITDA margin. EBIT amounted to CHF 5.4 million, following an operating loss of CHF 14.3 million the previous year. Net loss is reported at CHF 4.2 million. When excluding special financial charges of CHF 5.2 million, profit is reported at CHF 1.0 million.
While sales in Siegfried’s active pharmaceutical ingredients (API) business grew by 14.1% to CHF 252.2 million, sales of CHF 62.2 million in formulated drug products remained at the previous year’s level.
Distinctive strengthening of balance sheet
In the year under review, net working capital decreased by a further CHF 23 million representing a positive impact on cashflow. Operating cashflow in general developed encouragingly and reached CHF 58 million. At December 31, 2010, Siegfried held net cash amounting to about CHF 40 million. Based on the net cash position and the high equity ratio of 81%, planned acquisitions within the parameters of the strategy can be financed at any time.
Strategy implementation on target
Siegfried implemented significant steps of its strategy in 2010. In March, Siegfried’s organization was converted from a divisional to a functional structure. At the beginning of May, the Siegfried Group successfully placed CHF 80 million mandatory convertible notes (MCN), which were fully subscribed by Siegfried’s shareholders. At the end of September, Siegfried divested its PulmoJet inhalation project as planned to sanofi-aventis and, following market introduction, Siegfried will benefit from royalties. Several measures were implemented in connection with the strategic goal of securing and expanding Siegfried’s presence in the USA, such as realigning and strengthening the marketing and sales organization. Capacity utilization of the US plant clearly grew in 2010.
Good pipeline
On December 31, 2010, Siegfried’s development pipeline comprised 31 projects for active ingredients and intermediate products as well as 9 projects for development services connected with formulated drug products, including 3 projects embracing both active pharmaceutical ingredients and galenic formulations. Therefore, combined with a gratifying order backlog for 2011, a basis has been created for continually growing capacity utilization over the coming years.
Annual general meeting of shareholders
As announced earlier, Dr. Markus Altwegg will retire as Siegfried’s chairman due to his age following nine years of service on the Siegfried Board of Directors. The Board appointed Gilbert Achermann as his successor. Gilbert Achermann also serves as chairman of the Straumann Group’s Board of Directors. Furthermore, the Board of Directors proposes to the general meeting of shareholders the appointment of Reto Garzetti, Dr. Beat In-Albon and Dr. Thomas Villiger. Susy Brüschweiler and Prof. Dr. Felix Gutzwiller will no longer stand for re-election. Siegfried will disburse 5% interest on the mandatory convertible notes to be paid out in May 2011. The Board of Directors proposes to the annual general meeting of shareholders to waive payment of a dividend again.
