Released: 29/03/2018 – 17:19 GMT
RNS Number: 4985J
29 March 2018
Castelvecchio Pascoli (Lucca, Italy), 29 March 2018 – The Board of Directors of Kedrion S.p.A., a biopharmaceutical company that specializes in the development, production and distribution of plasma-derived therapies and in the collection of plasma, has today approved the draft individual financial statements and the consolidated financial statements for the fiscal year 2017.
The following key figures are reported on a consolidated basis.
In 2017, Kedrion recorded a turnover of Euro 602.5 million (Euro 659.3 million in 2016), representing an 8.6% decrease compared to the previous year. Revenues from the sale of plasmaderivatives were Euro 490.0 million (81.3% of the total), down 2.7% from 2016, mainly because of the termination of the distribution agreement of Bivigam® in the United States, for which Biotest Pharmaceuticals Corp. agreed to pay a termination fee, which has been reported as “Other Income”. The plasma segment generated revenues for Euro 93.9 million (15.6% of the total), a Euro 47.6 million decline from 2016 due to a shortage in the quantity of plasma delivered by one of Kedrion’s main third-party suppliers.
Concerning the geographic mix, the United States are the Company’s main market with 40.6% of the total revenues, followed by the European Union (36.8%), headed by Italy.
The adjusted EBITDA increased by 31.6% to Euro 139.9 million (Euro 106.3 million in 2016), representing a margin of 23.2% (16.1% in 2016), whereas the EBIT – although still affected by the significant one-off costs for the refitting of the Melville plant – was Euro 51.6 million (8.6% of revenues), compared to Euro 19.8 million in 2016 (3.0% of revenues).
Net financial expenses reached Euro 41.8 million (Euro 9.3 million in 2016), negatively affected by the costs associated with the refinancing process completed during the year and by the impact of the foreign exchange losses largely related to the depreciation of the US Dollar against the Euro. Net income for the year was Euro 6.2 million (1.0% of revenues), compared to Euro 11.8 million in 2016 (1.8% of revenues).
Kedrion made total investments for Euro 93.8 million (Euro 71.6 million in 2016), of which Euro 54.1 million dedicated to the Melville plant. This project, which started in 2016 and includes a full refitting of the facility and a new fractionation and purification line for the proprietary Anti-D immunoglobulin (RhoGAM®), has been completed with respect to the construction phase whereas the validation and regulatory phases are currently ongoing.
In accordance to its plasma sourcing strategy, net of the six non-core centers divested in early 2017, Kedrion during the year purchased or opened five collection centers in the United States and one in Hungary. As of December 2017, the Company’s network included 24 plasma centers.
The net working capital has grown from Euro 234.6 million in 2016 (35.6% of revenues) to Euro 285.6 million in 2017 (47.4% of revenues). The increase reflects the reduction in the payables after the extraordinary level reached in the previous year because of the acquisition of two plasma collection centers and two large supplies at the end 2016, for which payment became due in early 2017.
Kedrion successfully refinanced a large portion of its debt in 2017, issuing a new 5-year Euro 350 million Eurobond with a coupon of 3.0%. Part of the proceeds have been used to repurchase, by means of a cash tender offer, Euro 91 million of the Eurobond due April 2019 with a coupon of 4.625%. The Company also extended, by three years to April 2022, the maturities of two revolving credit facilities respectively by Euro 158 and 30 million. Following the early repayment of the Euro 90 million amortizing term loan, in December 2017 Kedrion obtained a new Euro 60 million revolving credit facility due December 2021.
As a result of the increase in the capital expenditures and in the net working capital, the net financial position as at 31 December 2017 reached Euro 444.6 million (Euro 339.1 million at the end of 2016), including Euro 104.5 million in cash. Thanks to the refinancing transactions, the Company has Euro 190.5 million available in undrawn credit lines, which increases its liquidity position to Euro 295.0 million.
Key financial metrics for FY 2017
The individual financial statements for the year ended 31 December 2017 will be submitted for approval of the Annual General Meeting of Stockholders on 27 April 2018. During the same meeting, the Board of Directors will also present the consolidated financial statement for the year 2017.
For further information, please write to [email protected]
Kedrion is a leading biopharmaceutical company that specializes in the development, production and distribution of plasma-derived therapeutic products for use in treating serious diseases, disorders and conditions such as immune system deficiencies and coagulation disorders.
The Company operates through a fully integrated business model from the collection of plasma in its own centers in the United States, Hungary and Germany to fractionation and production in its manufacturing facilities located in Italy, Hungary and the United States.
Headquartered in Castelvecchio Pascoli (Italy), Kedrion has over 2,400 employees and a commercial presence in approximately 100 countries worldwide.
Kedrion places a high value on the welfare of those who benefit from its products, as well as on the people and the communities it serves.
Additional information about Kedrion can be found at kedrion.com
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.