Siegfried continued its positive trend
• The Siegfried Group significantly increased sales and profitability for the first six months of 2013
• Sales grew by 10.0% (9.2% in local currencies) to CHF 196.7 million
• Profitability grew faster than sales. EBITDA improved by 31.2% to CHF 27.9 million, corresponding to a margin of 14.2% (previous year: 11.9%)
• EBIT increased by 72.4% to CHF 15.6 million• Net profit for the first half is reported as CHF 18.5 million or CHF 5.16 per share (previous year: CHF 13.2 million / CHF 3.63)
• The various strategic projects are progressing according to schedule and will ensure continued growth of key operating figures in the coming years
CEO Rudolf Hanko: "Siegfried's considerable sales growth is a result of the company's fa-vorable product mix based on broad technological and methodological capabilities. We clearly increased profitability by means of strict capacity and cost management. The acquisition of Alliance Medical Products last year represents a significant contribution toward improved key operating figures. Strategically and operationally we are making good progress in reaching our goals."
Sales growth in both business segments
Total sales of CHF 196.7 million represents a growth of 10.0% (9.2% in local currencies, 3.9% adjusted to acquisitions). Compared to the previous year, sales of active pharmaceutical in-gredients grew by 3.5% to CHF 135.0 million while the main sales drivers continued to devel-op steadily. Siegfried benefited from growing demand in the field of controlled substances and from an additional order for exclusive synthesis. Sales of finished dosage forms rose by a significant 27.7% to CHF 61.7 million.
Clearly higher profitability
Profitability improved considerably as a result of positive sales growth. Earnings before inter-est, taxes, depreciation and amortization (EBITDA) grew by 31.2% to CHF 27.9 million while the EBITDA margin increased from 11.9% to 14.2% compared to the previous year. Earnings before interest and taxes (EBIT) grew by 72.4% to CHF 15.6 million and the EBIT margin from 5.1% to 7.9%. Reflecting a positive tax result due to the capitalization of losses carried forward, Siegfried reports net profit of CHF 18.5 million for the first half of 2013, correspond-ing to CHF 5.16 per share (previous year: CHF 13.2 million / CHF 3.63).
Financial means available for planned investments
Operating cash flow generated in the first half of 2013 amounted to CHF 30.0 million, or more than twice the previous half year's result. Net cash at the end of June amounted to CHF 24.8 million, or CHF 50.5 million including treasury shares. The equity ratio is reported as 67.7%. Counting in the available credit lines, Siegfried enjoys sufficient scope to finance the upcom-ing investments required to develop a production site in China, construction of a new produc-tion plant in Zofingen, expansion of production capacity in Malta and the general continued development of its technological base.
Strategy implementation on course
Targeted investment in capacity expansion was made in Pennsville, New Jersey, and Malta. Headcount increased to 885 full-time positions. Projects aimed at further stepping up sales and profitability are progressing to schedule. In July 2013, the ground-breaking ceremony for a new production plant in Nantong with a capacity of 300 cubic meters was held. The plant is to begin commercial production mid of 2014 and employ a workforce of about 300 by 2015. In Zofingen, preparations are in full swing for the construction of a new chemical plant with a capacity of 100 cubic meters. The new building will replace several older plants at the Zofin-gen site which no longer comply with efficiency requirements and generate high maintenance expenses. The two plants in Nantong and Zofingen are based on an identical technical con-cept in order to facilitate product transfers from a regulatory and technical perspective. More-over, a new administration building will be erected in Zofingen that will comply with state-of-the-art requirements concerning work-flow and working environment. The project will be fi-nanced by an outside investor, permitting Siegfried to allocate its available financial means to strategy implementation. The new offices will be ready for occupation in the second half of 2015.
Continuation of positive trend expected
Siegfried expects the positive trend to continue in the second half-year. Assuming no unfore-seen events, the company counts on slightly higher sales for the entire 2013 financial year and improved profitability compared to the previous year.
The Half Year Report 2013 is available under the following link:
Michael Huesler, CFO
Phone: +41 (0)62 746 11 35
Mobile: +41 (0)79 279 94 52
Fax +41 (0)62 746 11 03
Peter Gehler, Head Corporate Center
Phone: +41 (0)62 746 11 48
Mobile: +41 (0)79 416 41 16
Fax +41 (0)62 746 11 03
Siegfried Holding AG
Untere Brühlstrasse 4
CH-4800 Zofingen, Switzerland
Phone +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 Switzer-land, Malta and the USA. At the end of 2012, Siegfried reported annual sales of CHF 368 million and employs at the time being approximately 850 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 manufac-tures active pharmaceutical ingredients for the research-based pharmaceutical industry as well as the corre-sponding intermediate steps and controlled substances, and provides development and production services for drugs in finished dosage forms including sterile filling.
Cautionary Statements Regarding Forward-looking Statements
This press release may contain forward-looking statements based on current assumptions and forecasts made by Siegfried Group management and other information currently available to the Siegfried Group. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Siegfried Holding AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.