Closes 2023 as the 11th consecutive year of growth in both revenue and net profit and says 2024 will be a "key year"

Faes Farma registered a "record" net profit of 91.7 million in 2023, which represents an increase of 2.5% compared to 2022, in what has been a record year for the pharmaceutical company, as reported by the company this Tuesday. to the National Securities Market Commission (CNMV).

The company invoiced 473.1 million euros in 2023, 2.5% more than in 2022, when it earned 462 million euros, in line with the forecasts set by the firm, while the consolidated gross operating result (Ebitda) registers a new maximum and exceeds 122 million euros, 1.2% more

The company has indicated that the growth of the business is supported by the upward trend in direct sales income from international markets, that is, through subsidiaries (8%), and by the "very positive" evolution of the molecules. bilastine (10%) and calcifediol (11%), with "record annual income."

Faes Farma has closed the eleventh consecutive year of growth in both revenue and net profit, meeting the expected results for the year.

Net profit reached 91.7 million euros, the highest figure in the company's history after growing by 2.5%, and with a margin of 20.3% on sales. For its part, gross operating profit (Ebitda) stands at 122 million, 1.2% more than in 2022, which also represents "a new high." The attributable result was 91.9 million, 2.7% more.

It has also highlighted its "solid" financial position, with a "strengthened" balance sheet, and cash of 34 million euros, despite the "strong" level of investments made by the group of more than 97 million euros, mainly destined to the two new Faes Farma plants in Derio (Bizkaia) and Huesca.

INTERNATIONAL MARKETS

Likewise, he stressed that, thanks to the strategy of international expansion and geographical diversification, foreign markets revalidate their majority weight in the Group's business, representing 56% of total income. At the end of the 2023 financial year, they amount to 263.3 million euros, with a growth of 6%.

Of this total, the International Pharma division stands out through subsidiaries, with a growth of 8% to reach 159.1 million. By geographical area, the Middle East and Africa (OMA) markets are growing by double digits, 22%, to 25.9 million, after increasing business in all areas. In this sense, he cited the integration last May of the Novosci company, located in the Persian Gulf, which "makes it possible to strengthen this region through direct sales."

As specified, the subsidiaries that make up the Latam market continue to be the majority source of income and, after growing 8%, they total 85.6 million. In addition, the 47% growth of the Mexican market stands out thanks to the strong expansion of the commercial team and the "good performance" of the main products.

MAIN BUSINESS

The Pharmaceutical Division remains the Group's main business with almost 89% of the total consolidated income, reaching 420.4 million, compared to the 52.7 million euros of the FARM Faes animal nutrition and health business.

The pharmaceutical company has specified that, within the Pharmaceutical Division, the income from the group's three main molecules is of particular importance, growing by 8% to total 182.8 million. In this sense, bilastine increases in all major markets and reaches a "new record" of annual revenues with 120.4 million, 10% more than the previous year.

For its part, calcifediol also shows the "good pace" in the markets in which it is present, with sustainable growth in Spain and stronger internationally thanks to licenses and Latam subsidiaries. In this way, it totals almost 50 million, 11% more.

Finally, mesalazine registers a negative growth of 17%, up to 12.5 million euros, mainly due to a build-up of stocks in Poland in 2022.

Regarding license income, they amount to 99.6 million, 4% more than the previous year, and, according to Faes Farma, it is revalidated as "the most profitable area" of the Group.

For its part, FARM Faes, the animal nutrition and health division, closes the year with a decrease in income of 11%, to 52.7 million. The activity of this business has been generally affected in Iberia, mainly due to the loss of animals in the first ages of pigs due to diseases.

Regarding I D i activity during 2023, the company has highlighted the launch of ophthalmic bilastine and orally disintegrating tablets (ODT) in Spain and Portugal. In addition, registration has been presented in Europe. As for bilastine, last year approval was achieved for its sale in China, whose launch is planned throughout 2024.

He also cited advances in innovation, with two "key projects" that have entered the clinical phase, mesalazine 1500 and mesalazine granules. On the other hand, he highlighted that in 2023 the weekly dose calcifediol dossier has also been submitted for registration due to the "good results" in clinical trials, so the launch is planned for 2025.

On the other hand, he has highlighted the advances in ESG, such as obtaining LEED Gold certification in the new Derio pharmaceutical plant, "which guarantees the sustainability and respect for the environment of the building." In addition, the Equality Plans of Ingaso and Tecnovit, two of the companies that make up FARM Faes, the animal nutrition and health business, have been approved.

2024 KEY YEAR WITH TWO NEW FACTORIES

Faes Farma has assured that 2024 will be a "key" year for the company with the consolidation of the investments made during the last two years. Specifically, with the start-up of the new pharmaceutical production factory in Derio (Bizkaia), which will allow up to doubling the current capacity of the Lamiako plant, being able to produce around 100 million units of medicines each year," which will lay the foundations for a new period of growth for the Group".

The new factory, which will go into production throughout the year after the validations and approvals of the drug regulatory agencies of the different countries, starting with Spain, would be used to sell in Europe and some Latin American countries.

For its part, the new special feed plant for early pigs in Huesca continues the process for the completion of the works, which will be completed throughout the year according to schedule.