The Siegfried Group achieved sales of CHF 288.7 million, a 9.3% decrease over the previous year in Swiss francs and a decrease of 5.7% in local currencies. The EBITDA of CHF 48.2 million corresponds to a 16.7% EBITDA margin. At CHF 22.3 million, operative cash flow remained decidedly positive. The operating profit (EBIT) of CHF 12.3 million is characterized by numerous exceptional factors and the net income of CHF – 74.8 million is affected by depreciations on assets and goodwill. The Board of Directors recommends that the General Meeting of Shareholders approve a dividend of CHF 2.10 per share (previous year: CHF 4.20).
Restructuring and impairment in order to enhance future earnings The Siegfried Group books an impairment of CHF 97 million on goodwill and non-financial assets. The earnings statements of the coming years will be enhanced by around CHF 7 million through reduced depreciations as a result of the impairment. The value adjustments led to a net loss of CHF 74.8 million for 2008. Our 65.8% level of self-financing remains very high. Both the Board of Directors and Group management consider the results to be unsatisfactory and have implemented special measures, starting the internal project “Deliver,” a comprehensive restructuring program. A large part of the cost savings will be derived from improved processes, streamlined structures, and accelerated throughput times. Starting in 2010, “Deliver” is set to achieve annual sustainable savings of around CHF 20 million.
Siegfried Actives Division
The Siegfried Actives Division reported CHF 191.6 million in revenues, a 13% drop, because lagging approval processes resulted in the delay of two key contracts to 2009. Accordingly, EBIT margins reached only - 3% and the EBITDA margin 13.4%. A comprehensive supply contract was signed toward the end of 2008 with a pharmaceutical company. The European launch of opiate-based standard APIs was a success, and our first supply contract in the U.S. was signed.
About Siegfried
Active in Life Science markets, the Siegfried Group is a global manufacturer of pharmaceutical products. With production facilities located in Switzerland, Germany, Malta and the USA, Siegfried currently has approximately 820 employees and achieved annual sales of approx. CHF 290 million in 2008.
Siegfried integrates two pharmaceutical divisions. Siegfried Actives develops and produces both exclusive and standard active pharmaceutical ingredients for the pharma industry and standard APIs. Siegfried Generics produces demanding generic products.
Siegfried Holding AG is listed on the Swiss Exchange in Zurich (SWX: SFZN).
