RECORDATI: PRELIMINARY 2020 RESULTS
CONFIRM CONTINUED GROWTH OF OPERATING INCOME AND NET INCOME. EBITDA
+4.7% AND ADJUSTED NET INCOME +7.3%.
- Consolidated revenues € 1,448.9 million, -2.2% (+0.4% at
constant exchange rates).
- EBITDA(1) € 569.3 million, +4.7%.
- Operating income € 469.0 million, +0.8%.
- Net income € 355.0 million, -3.8%; excluding the non-recurring
“Patent Box” tax benefits, net income increased by +3.2%.
- Adjusted Net income(2) € 410.4 million, +7.3%.
- Net financial position(3): net debt of € 865.8 million, with
positive underlying cash generated, excluding dividends and
payments associated with new licenses and milestones, of
approximately € 360 million.
- New product launches, combined with portfolio expansion through
new commercial agreements, lay the foundation for solid future
growth.
- 2021 objectives include continued growth in revenues, EBITDA(1)
and adjusted net income(2).
- Approved a share buy-back program to service the stock options
plans.
- Payment dates of the 2020 dividend balance and the 2021 interim
dividend announced
Milan, 22
February 2021 – The Board of Directors of Recordati S.p.A. reviewed
the preliminary consolidated financial statements for 2020 and the
2021 objectives. The company’s final consolidated annual financial
statements will be submitted to the Board for approval on 18 March
2021.
Financial highlights
- Consolidated revenues, at € 1,448.9 million,
fell by 2.2% compared to 2019, reflecting also the devaluation of
almost all currencies against the euro, which was especially
notable during the second half of the year. At constant exchange
rates, the Group’s sales grew slightly by +0.4%. Revenues for the
new drugs acquired at the end of 2019, Signifor® and Signifor® LAR
and initial sales of Isturisa® totalled € 79 million.
- EBITDA(1) was € 569.3 million, an increase of
4.7% over 2019, thanks to expense controls and a better gross
margin, at 39.3% of sales, up compared to 36.7% in 2019.
- Operating income was € 469.0 million, an
increase of 0.8% over the previous year, lower compared to EBITDA
growth due to the increase in amortization associated with new
products, a margin of 32.4% of sales compared to 31.4%.
- Net income, equalled € 355.0 million, at 24.5%
of sales, compared to € 368.9 million in 2019; excluding
non-recurring “Patent Box” tax benefits, equal to € 2 million in
2020 and to € 27 million in 2019, net income increased by 3.2%
thanks to the progress in operating income and the decrease in
financial expenses.
- Adjusted net income(2), equal to € 410.4
million, grew by 7.3% compared to 2019, at 28.3% of sales, higher
than the previous year, which as 25.8%.
- Net financial position(3) at 31 December 2020
recorded a net debt of € 865.8 million, which was lower compared to
the net debt of € 902.7 million at 31 December 2019. In the period,
dividends of € 212.7 million were distributed and payments were
made for milestones and licenses for new products for a total value
of approximately € 99.1 million. Treasury shares were purchased for
a total disbursement, net of sales for the exercise of stock
options, of € 12.2 million. Net of these effects, the Group’s solid
cash generation was confirmed at approximately € 360 million.
Management Comments
“In 2020, our Group faced and successfully
overcame various challenges, some of which were expected,
such as the loss of exclusivity for some corporate products, others
which emerged during the year at the onset of the COVID-19
pandemic. Despite the influence these events had on the market and
therefore also on our business, the Group demonstrated resilience
and the ability to react in a challenging environment. This allowed
us to achieve absolutely positive results, with EBITDA of € 569.3
million, up by +4.7%, and Adjusted net income of € 410.4 million,
up by +7.3%. This was possible thanks to all the Group
employees who ensured the continuation of business even in the most
acute stages of the epidemic”, stated CEO Andrea Recordati. “We
were able to limit the impact of the pandemic by carefully managing
costs and successfully increasing our business in the rare diseases
sector, by adding Signifor® and Signifor® LAR to our portfolio and
launching Isturisa®, products acquired from Novartis in 2019. We
also continued to work towards the growth and consolidation of our
Group, with the launch of Cystadrops in the United States, and
finalising new agreements to expand the portfolio. To this end, we
added a license and supply agreement with ARS Pharmaceuticals,
signed in September, for ARS-1, an epinephrine-based nasal spray,
and an additional deal with Tolmar International Ltd, finalised at
the beginning of 2021, for a license and supply agreement to market
Eligard® (leuprolide acetate), a marketed medicinal product for the
treatment of hormone dependent advanced prostate cancer.
All of these transactions lay the foundation for
the Group’s continued and solid growth. In 2021, with the help of
the transactions already disclosed and assuming a gradual recovery
of our reference markets after COVID-19 in the second half of the
year, we expect revenues between € 1,570 million and € 1,620
million, EBITDA between € 600 million and € 620 million, and
adjusted net income between € 420 and € 440 million”.
(1) Net income before financial (income) expense, provision for
taxes, depreciation, amortization and write-down of property, plant
and equipment, intangible assets and goodwill, and non-recurring
items.
(2) Net income excluding amortization and
write-downs of intangible assets (except software) and goodwill,
and non-recurring items, net of tax effects.(3) Cash and short-term
financial investments less bank overdrafts and loans, which include
the measurement at fair value of hedging derivatives.
Approved a share buy-back program to
service the stock options plans
Today, the Board of Directors also approved to
launch a share buy-back program under art. 5 of (EU) Regulation no.
596/2014 for a maximum of up to 1,500,000 ordinary shares - within
the maximum cash outlay of EUR 75 million - in execution of the
resolution adopted by the Shareholders’ meeting held on 29th April
2020, for the servicing of current and future stock option plans in
favour of the Recordati Group’s management. Such program will be
executed through an intermediary - which will operate in full
independency (“riskless principal”) – whose identification is
on-going, further to a specific delegation of powers.
Dates of payment of dividends during
2021
As a follow-up to – and consistently with - the
press release on 2021 corporate events calendar, published on 30
November 2020, Recordati S.p.A. announces that the payment of
the balance of the 2020 financial year dividend is planned for 26
May 2021, on each outstanding share at 24 May 2021 (ex-dividend
date) and record date 25 May 2021, while payment of the interim
dividend for the 2021 financial year is planned for 24 November
2021, on each outstanding share at 22 November 2021 (ex-dividend
date) and record date 23 November 2021(*).
Declaration by the Manager responsible
for preparing the company’s financial reports
The manager responsible for preparing the
company’s financial reports, Luigi La Corte, declares, pursuant to
paragraph 2 of Article 154-bis of the Consolidated Law on Finance,
that the accounting information contained in this press release
corresponds to the documentation evidence, books and accounting
records.
Conference Call
Recordati will be hosting a conference call
today, 22 February, at 4:00 p.m.
Italian time (3:00 p.m. London time, 10:00 a.m. New York
time). The dial-in numbers are:
Italy
+39 02 805 8811, toll free 800 213 858UK
+44 1 212 818 003, toll free 800 015 6384USA
+1 718 705 8794, toll free +1 855 265 6959 France
+33 1 70 918 703 Germany
+49 69
17415713
Callers are invited to dial in 10 minutes before
conference time. If conference operator assistance is required
during the connection, please dial* followed by 0 or call +39 02
806 1371. A recording of the conference call will be placed on the
website www.recordati.com.
A set of slides which will be referred to during
the call will be available on our website www.recordati.com under
Investors/Company Presentations.
(*) Recordati S.p.A. specifies that this press
release is not a forecast of the existence of the conditions for
the dividend distribution.
Recordati, established in 1926,
is an international pharmaceutical group listed on the Italian
Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT
0003828271), with a total staff of more than 4,300, dedicated to
the research, development, manufacturing and marketing of
pharmaceuticals. Headquartered in Milan, Italy, Recordati has
operations throughout the whole of Europe, including Russia,
Turkey, North Africa, the United States of America, Canada, Mexico,
some South American countries, Japan and Australia. An efficient
field force of medical representatives promotes a wide range of
innovative pharmaceuticals, proprietary and under license, in a
number of therapeutic areas, including a specialized business
dedicated to treatments for rare diseases. Recordati is a partner
of choice for new product licenses for its territories. Recordati
is committed to the research and development of new specialties,
with a focus on treatments for rare diseases. Consolidated revenue
for 2019 was € 1,481.8 million, operating income was € 465.3
million and net income was € 368.9 million.
For further information:
Recordati website: www.recordati.com
Investor Relations
Media
Relations
Federica De
Medici
Studio Noris
Morano
(39)0248787146
(39)0276004736, (39)0276004745e-mail: investorelations@recordati.it
e-mail:
norismorano@studionorismorano.com
Statements contained in this release, other than
historical facts, are "forward-looking statements" (as such term is
defined in the Private Securities Litigation Reform Act of 1995).
These statements are based on currently available information, on
current best estimates, and on assumptions believed to be
reasonable. This information, these estimates and assumptions may
prove to be incomplete or erroneous and involve numerous risks and
uncertainties beyond the Company’s control. Hence, actual results
may differ materially from those expressed or implied by such
forward-looking statements. All mentions and descriptions of
Recordati products are intended solely as information on the
general nature of the company’s activities and are not intended to
indicate the advisability of administering any product in any
particular instance.
- P.R. Preliminary 2020 results and 2021 target
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