Novasep reports full year 2013 results showing strong growth and beating guidance
Pompey, France, March 27, 2014 - Novasep, a leading supplier of manufacturing solutions to life science industries, today announces its unaudited consolidated results for the period ended December 31, 2013.
The company is excited by the performance achieved through the year including:
8 per cent revenue growth, reaching EUR 316m
15 per cent EBITDA growth and increase of almost EUR 5m and reaching EUR 38.5m, meaningfully ahead of investor guidance for the year
Improvement in performance in every division of the business
Net cash flow from operations of EUR 16m, from EUR 6m in 2012
On-time and on-target performance in its key customer commitments, including the building of the largest chromatography plant located in Mourenx, expected to be operational during summer 2014
Financial results and business review
For the full year 2013, Novasep achieved sales of EUR 315.7m (plus 7.6 per cent increase vs. the same period of 2012), and adjusted EBITDA of EUR 38.5m (plus 14.6 per cent increase vs. adjusted EBITDA of the same period of 2012). This result was achieved with growth and improvement in performance in every division.
For the synthesis segment, sales increased by about plus 5.2 per cent up to EUR 155.1m: loss of sales in legacy pharma contracts have been fully compensated by increased sales in agro and specific pharma markets, in particular highly potent ingredients for cancer therapies. Division EBITDA of EUR 14.4m is growing strongly, up 18 per cent over last year as costs were contained while revenues grew.
The biopharma segment grew 14 per cent to EUR 52.5m excluding internal sales (up an even more impressive 33 per cent and up to EUR 61.2m including chromatography equipment for the Leffe project of EUR 9m). EBITDA jumped by 125 per cent up to EUR 5.4m, (plus 100 per cent excluding Leffe project equipment contribution). The revenue increase is driven both by growth of sales of equipment and company's improved performance in the CMO biopharmaceutical segment.
The industrial biotech segment 2013 sales have remained stable (minus 0.9 per cent vs. 2012) at EUR 57.5m. At the same time, thanks to supply chain improvements, EBITDA has gone up by 19 per cent to EUR 5.7m.
The pharmachem segment shows a 9.4 per cent increase in sales (5.6 per cent in USD) and a 2.5 per cent increase in EBITDA.
The net cash flow from operations of EUR 16m, up from EUR 6.3m in 2012, was achieved through improvement in operating results coupled with decrease in working capital, mainly driven by inventories and overdues reductions. At the end of 2013, Novasep had net debt of EUR 132m (vs. EUR 128m at end 2012) and cash on hand of EUR 40m (vs. EUR 41m at end 2012).
Recent events and prospects for 2014
The new management team is on the ground and driving the business. Thierry van Nieuwenhove was appointed head of the synthesis business unit in early January. The process division has split into two different business units; biopharma, managed by Alain Lamproye, and industrial biotech, managed by Nadege Laborde. In addition, Michel Spagnol, CEO of Novasep, was appointed chairman of the supervisory board on March 4th, 2014. The company is establishing a new management and marketing center in Lyon Gerland to be closer to its key customers, to be operational in the fourth quarter 2014.
About Novasep: http://www.novasep.com
Novasep is a leading worldwide provider of integrated manufacturing solutions for life science industries. Novasep develops, markets and operates innovative technologies from lab to industrial scale to produce biomolecules and synthetic molecules for the pharmaceutical, biopharmaceutical, agrochemical, fine chemical and industrial biotechnology markets. Headquartered in Pompey, France, Novasep has six FDA-inspected manufacturing plants in France, Germany and the Bahamas, two biopharmaceutical production sites in Belgium, R&D and equipment manufacturing facilities in the USA, China and France and offices in Japan, Thailand and India. Novasep operates through three business lines: the synthesis business unit, which uses a large range of chemical synthesis and purification technologies to develop and produce high value‑adding active ingredients and advanced intermediates for the pharmaceutical, crop science and other fine chemical industries, the industrial biotech business unit which provides innovative purification processes for industrial biotechnology industries and the biopharma business unit, which supplies innovative purification equipment and systems for the pharmaceutical and biopharmaceutical industries and provides contract manufacturing services for biopharmaceuticals.
An investor conference call including a management discussion will be organized on April 30, 6pm, to present the first quarter results 2014 and to comment on the 2013 audited accounts.
Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the company or its officers with respect to various matters. When used in this document, the words 'expects,' 'believes,' 'anticipates,' 'plans,' 'may,' 'will,' 'should', similar expressions and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.
 Excluding Leffe EUR 17m capex