France, March 27th, 2014 - Novasep, a leading supplier of manufacturing solutions to Life Science industries, today announces its unaudited consolidated results1 for the period ended December 31st, 2013.
The company is excited by the performance achieved through the year including:
- 8% revenue growth, reaching €316m
- 15% EBITDA growth and increase of almost €5m and reaching €38.5m, meaningfully ahead of investor guidance for the year
- improvement in performance in every division of the business
- net cash flow from operations2 of €16m, from €6m in 2012
- on-time and on-target performance in its key customer commitments, including the building of the largest chromatography plant in Mourenx, expected to be operational during summer 2014
Financial results and business review
For the full year 2013, Novasep achieved sales of €315.7m (+7.6% increase vs. the same period of 2012), and adjusted EBITDA of €38.5m (+14.6% 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 +5.2% up to €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 €14.4m is growing strongly, up 18% over last year as costs were contained while revenues grew.
The Biopharma segment grew 14% to €52.5m excluding internal sales (up an even more impressive 33% and up to €61.2m including chromatography equipment for the Leffe project of €9m). EBITDA jumped by 125% up to €5.4m, (+100% 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 (-0.9% vs. 2012) at €57.5m. At the same time, thanks to supply chain improvements, EBITDA has gone up by 19% to €5.7m.
The Pharmachem segment shows a 9.4% increase in sales (5.6% in USD) and a 2.5% increase in EBITDA.
The net cash flow from operations of €16m, up from €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 €132m (vs. €128m at end 2012) and cash on hand of €40m (vs. €41m at end 2012).
Recent events and prospect 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 in two different business units: Biopharma, managed by Alain Lamproye, and Industrial Biotech, managed by Nadège 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 Q4 2014.
2 Excluding Leffe €17m capex
About Novasep: www.novasep.com
Novasep is a leading worldwide provider of integrated manufacturing solutions for Life Science industries. Novasep develops, markets and operates innovative technologies from lab to industrial scale to produce biomolecules and synthetic molecules for the pharmaceutical, biopharmaceutical, agrochemical, fine chemical and industrial biotechnology markets. Headquartered in Pompey, France, Novasep has six FDA-inspected manufacturing plants in France, Germany and the Bahamas, two biopharmaceutical production sites in Belgium, R&D and equipment manufacturing facilities in the USA, China and France, and offices in Japan, Thailand and India. Novasep operates through three business lines: the Synthesis business unit, which uses a large range of chemical synthesis and purification technologies to develop and produce high value-adding active ingredients and advanced intermediates for the pharmaceutical, crop science and other fine chemical industries; the Industrial Biotech business unit which provides innovative purification processes for industrial biotechnology industries and the Biopharma business unit, which supplies innovative purification equipment and systems for the pharmaceutical and biopharmaceutical industries and provides contract manufacturing services for biopharmaceuticals.
Dusan Oresansky / Emmanuel Huynh
Tel.: +33 1 44 71 94 92
An investor conference call including a management discussion will be organized on April 30th, 6 pm, to present the Q1 results 2014 and to comment the 2013 audited accounts.
Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the company or its officers with respect to various matters. When used in this document, the words "expects," "believes," "anticipates," "plans," "may," "will," "should" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements.