(Boursier.com) — Europe announces revenue of 976.6 million euros, up 8.5%, driven by the solid performance of CDMO (+18.3%) and API Solutions (+5.3%) activities. Sales of large molecules increased by 79.9% to 98.4 million euros.
The performance of the API Solutions business was supported by existing customers and new customers. More than 30 new customers in 2022 – extension of a major multi-year contract with a major Japanese pharmaceutical group, have been counted.
The group underlines the solid commercial activity of the CDMO with 79 projects at the end of 2022 and 230 calls for tenders (requests for proposals – RFP) received against 120 in 2021.
Core EBITDA was 120 million euros, up 8.5%, or 12.3% of sales including the exceptional impact of the temporary suspension of prostaglandin production at the Budapest site.
Investments amounted to €138.3 million (14.2% of revenue), with major strategic investments made to support EUROAPI’s growth and performance.
Net income of -15 million euros, including 28.8 million euros of exceptional items related to the impairment of assets with no impact on cash.
The 20% reduction in CO2 emissions compared to 2020 (scopes 1 and 2) is in line with the commitment to reduce 30% in 2030.
2023 objectives
In a volatile and uncertain macroeconomic context, EUROAPI anticipates for 2023:
Revenue growth of between +7% and +8%
A Core EBITDA margin of between 12% and 14%;
Investments for an amount between 120 and 130 million euros.
Medium term outlook
“As we invest in accelerating our long-term growth and reducing our dependence on Sanofi, we are adjusting our medium-term outlook as follows:
Revenue growth of between +7% and +8% on average over the period 2023-20262 (compared to +6% to +7% between 2021 and 2025), driven by double-digit revenue growth business carried out with Other Clients (API Solutions and CDMO);
Core EBITDA margin above 20% in 2026 (vs. 2025 initially expected), and above 18% in 2025;
510 million euros of investments (Capex) over the period 2022-25 (unchanged)
Core Free Cash-Flow conversion rate between 50% and 53% by 2025 (unchanged).
“In order to support our overall performance, we are accelerating the transformation of the group with an additional value creation of 50 million euros per year expected by 2026” continues the management.
“For this first year as an independent company, EUROAPI recorded a solid performance, driven by the very good momentum of the CDMO activity and by the strong contribution of the API Solutions activity. The implementation of our strategy is in progress. on track and we are satisfied with the progress made in large molecules. We have initiated major projects in 2022, notably by announcing a series of strategic investments for vitamin B12 and for peptides and oligonucleotides. We have also limited the adverse external factors by increasing prices and improving our efficiency, while respecting the most demanding quality standards.In a volatile macroeconomic environment, we are taking a new step in our strategy by accelerating our transformation, and we are confident in our ability to continue to improve our competitiveness and ensure sustainable profitable growth for EUR OAPI”, said Karl Rotthier, CEO of EUROAPI.
