Annual Results 2016

Released: 31/03/2017 – 15.47 GMT
RNS Number: 2357B
Kedrion S.p.A.
31 March 2017

Castelvecchio Pascoli (Lucca, Italy), March 31, 2017 – The Board of Directors of Kedrion SpA, a biopharmaceutical company headquartered in Italy, specializing in the development, production and distribution of plasma-derived therapies and in plasma collection, has today approved its draft individual financial statements and consolidated financial statements for the financial year 2016.

Kedrion SpA closed the financial year 2016 with a consolidated turnover of 659.3 million Euro and a growth of 89 million Euro, an increase by 15.6%, compared to the previous financial year. The Company has, in fact, consolidated its position on the international markets thanks to an integrated business model that – to date – allows it to operate commercially in approximately 100 countries worldwide. The United States, in particular, are Kedrion’s main market, representing 45% of its total sales, whilst the Company continues to grow in other strategic markets.

In 2016, the Kedrion group increased its sales by 17.6% in the United States, 14.0% in Italy, 36.5% in other European Union countries, and by 6.3% in the Rest of the World, obtaining a profitability level of 16.1%. This slight dilution in comparison with the previous financial year is due to the lower margins of the US market, which are negatively impacted by the plasma segment, a less profitable segment in the plasma-derivatives business, and by higher costs arising from the outsourcing of production following the shutdown of the Melville (USA) production facility for revamping operations.

Adjusted EBITDA is 106.3 million Euro (118.9 million in 2015) whereas EBIT – affected by the significant one-off costs of the revamping operations at the US plant – is 19.8 million Euro, or 3.0% of turnover. Net income is 11.8 million Euro, equal to 1.8% of total turnover.

Also during 2016, the Company was committed to achieving further operational efficiencies, both by increasing the number of owned plasma collection centers and by proceeding in the internalization of key production processes that had previously been outsourced. Insofar as plasma collection activities are concerned, the Company’s strategy of doubling owned centers in the US market has already resulted in major investments in 2016, culminating in the purchase of two new collection centers at the end of the year.

As far as production activities are concerned, the Melville plant is undergoing a complete revamp, with an investment that will also continue throughout 2017. The goal is to achieve full integration and standardization of the Kedrion group’s four production plants.

These same principles apply to the investments dedicated to the new fractionation and purification line of Anti-D immunoglobulin (RhoGAM®) at the Melville plant, which has almost been completed with respect to the engineering phase (to be followed by the validation, inspection and regulatory phases), and the purification line of 10% immunoglobulin (KIG10) with the chromatographic method at the plant in Castelvecchio Pascoli (Italy). Overall supporting investments in 2016, dedicated to the plasma segment as well as to the production of plasma-derived therapies, were equivalent to approximately 71.6 million Euro, whilst about 33 million Euro were invested in research and development.

Financial coverage of these investments was obtained through the issue of a Eurobond in 2014 and through two credit lines obtained from a pool of different banks. Furthermore, during this accounting period, Net Working Capital improved from 279.9 million Euro in 2015 to 234.6 million Euro, representing an incidence on sales of 35.6% in comparison with 49.1% in 2015, thereby releasing significant financial resources that have allowed the Company to maintain a substantially stable Net Financial Position (339.1 million Euro).

The individual financial statements for the year 2016 will be submitted for approval of the Ordinary General Meeting of Stockholders on 27th April 2017. During the same meeting, the Board of Directors will also present the consolidated financial statements for the year 2016.

About Kedrion SpA
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 2,300 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

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This document contains forward-looking statements on overall economic development as well as on the business and assets position of Kedrion SpA 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.