Novasep Reports Full Year 2013 Results
News Mar 28, 2014
Novasep has announced 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.