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11-08-2017

First half results 2017

Released: 11/08/2017 - 15:57 GMT
RNS Number: 8299N
Kedrion S.p.A.
11 August  2017


Castelvecchio Pascoli (Lucca, Italy), 11 August 2017 - The Board of Directors of Kedrion S.p.A., a biopharmaceutical company headquartered in Italy, specialized in the development, production and distribution of plasma-derived therapies and in plasma collection, has today approved the consolidated financial results for the first six months ended 30 June 2017.

In the first half of 2017, Kedrion S.p.A. recorded a consolidated turnover of EUR 271.7 million, with a decrease of 11.9% compared to the same period in 2016 mainly due to a 35.7% decline in revenues generated in the United States. The performance in this market is a result of the termination of the distribution agreement of Bivigam®, for which Biotest Pharmaceuticals Corp. agreed to pay a termination fee, and the lower sales of plasma following the divestiture of six plasma centers. Both the termination fee and the proceeds from the sale of the centers are reported as “Other Income”.

In the approximately 100 other countries in which it operates commercially, the Company has continued to strengthen its competitive position thanks to a fully integrated business model, increasing its sales by 10.0% in Italy, 17.5% in the other European Union countries and 7.5% in the Rest of the World.

The adjusted EBITDA for the first half of 2017 increased by 29.0% reaching EUR 65.4 million (EUR 50.7 million in H1 2016), representing a 24.1% margin, whereas the EBIT – affected by the significant one-off costs of the revamping operations at the Melville plant – is EUR 40.4 million (EUR 22.8 million in H1 2016), or 14.9% of turnover. Group profit is EUR 11.7 million (EUR 8.4 million in H1 2016), equal to 4.3% of turnover.

As far as investment activities are concerned, during the first six months of 2017 the refitting of the Melville plant has progressed, with the aim of achieving full integration and harmonization of this site with the other Kedrion facilities.

Overall supporting investments in the first half of 2017, dedicated to the production of plasma-derived therapies as well as to the plasma segment, were equivalent to approximately EUR 44.5 million (EUR 12.5 million in H1 2016), whilst about EUR 15.7 million was invested in research and development.

The substantial level of investments during the period has been the main driver of the increase in the net financial position that was EUR 400.2 million as at 30 June 2017 (compared to EUR 367.4 million of the same period in 2016).

In order to optimize its financial structure, on 27 June the Company announced a refinancing process, which included the issue of a new Eurobond together with the repurchase of part of the outstanding notes due April 2019. After a three-day roadshow in London, Milan and Paris and having received orders in excess of EUR 750 million, on 5 July Kedrion successfully completed the launch of its new 5-year EUR 350 million Eurobond with a 3.0% coupon, which was listed on the Irish Stock Exchange on 12 July. Part of the proceeds have been used to repurchase, by means of a cash tender offer, EUR 91 million of the outstanding Eurobond due April 2019 and with a coupon of 4.625%, recording a success rate of 61%. In the same context, during the months of July and August, the Company also extended by three years to April 2022 the maturities of the EUR 158 million Revolving Credit Facility and the EUR 30 million Revolving Credit Facility. These transactions, whose success has demonstrated the confidence that investors and financial institutions place in Kedrion’s growth strategy, have allowed the Company to extend the debt maturity profile and reduce the average cost of debt.

Key financial metrics for the first half of 2017

The consolidated financial statements for the six months ended 30 June 2017 are available on the Company’s website www.kedrion.com, under the section “Investor Relations”.

 

About Kedrion

Kedrion is an international company that collects and fractionates blood plasma to produce and distribute plasma-derived therapeutic products for use in treating serious diseases, disorders and conditions such as hemophilia and immune system deficiencies.

With over 2,400 employees and a commercial presence in around 100 countries worldwide, Kedrion works to maintain excellent industry standards and aspires to ongoing improvement in order to retain a leading position in Italy and to increase its share of the international markets. The company works to strengthen its role as the accredited partner of medical, scientific and institutional communities, and its ambition is to enhance its worldwide role as a strategic partner of the national health systems of countries, aiming to become self-sufficient in providing plasma-derived products, also via technology transfer.

Kedrion generates wealth for investors, employees and for the local community in a manner that is consistent with its own vision and values: responsibility, transparency, confidence in and respect for people.

 

Maria Lina Marcucci, Chief Communication Officer
For further information, please write to: investor@kedrion.com
Global Communication: Lisa Nordio and Tiziano Bianconcini (tel: +39 0583767628)
Corporate Finance: Pasquale Fraiese (tel: +39 0583767494)

 

Disclaimer

This document contains forward-looking statements on overall economic development as well as on the business and assets position of Kedrion S.p.A. and its subsidiaries. These statements are based on current plans, estimates, forecasts and expectations of the company and are thus subject to risks and elements of uncertainty that could result in significant deviation of actual developments from expected developments. The forward-looking statements are only valid at the time of publication. Kedrion does not intend to update the forward-looking statements and assumes no obligation to do so.

For more information please contact: investor@kedrion.com