Interim report January - June 2017

April – June 2017            

  • Net sales amounted to SEK 1,401 million (1,235), an increase of 13.4%
  • EBITDA increased by 0.9% and amounted to SEK 242 million (240) corresponding to an EBITDA margin of 17.3% (19.4)
  • Operating profit (EBIT) amounted to SEK 123 million (150)
  • Profit after tax amounted to SEK 76 million (84) corresponding to a net margin of 5.4% (6.8)
  • Earnings per share amounted to SEK 1.19 (1.67) before dilution and SEK 1.19 (1.67) after dilution

January – June 2017     

  • Net sales amounted to SEK 2,729 million (2,208), an increase of 23.6%
  • EBITDA increased by 6.6% and amounted to SEK 401 million (376) corresponding to an EBITDA margin of 14.7% (17.0)
  • Operating profit (EBIT) amounted to SEK 168 million (218)
  • Profit after tax amounted to SEK 77 million (108) corresponding to a net margin of 2.8% (4.9)
  • Earnings per share amounted to SEK 1.15 (2.14) before dilution and SEK 1.15 (2.13) after dilution
  • Net debt to Equity was 0.6 (0.4)
  • During February the acquisition of Kemwell India was completed
Key figures Apr – Jun Jan – Jun Jul 16 – Jun 17   Jan - Dec
SEK million 2017     2016      Change
in %
2017     2016      Change
in %
LTM 2016
Net sales 1,401 1,235 +13.4 2,729 2,208 +23.6 5,199 4,678
EBITDA1/ 242 240 +0.9 401 376 +6.6 774 749
EBIT1/ 123 150 -18.0 168 218 -23.1 334 384
EBITDA margin (%)1/ 17.3 19.4 14.7 17.0 14.9 16.0
Earnings per share (SEK)1/ 1.19 1.67 1.15 2.14 3.32
Return on equity (%)1/ 3.3 3.5 5.0
Equity per share (SEK)1/ 75.2 72.1 75.7
Equity ratio (%)1/ 46.1 51.1 52.4
Net debt1/ 3,256 1,807 1,894
Net debt to Equity1/ 0.6 0.4 0.4
Net debt to EBITDA1/ 4.2 3.2 2.5

1/ APM: Alternative Performance Measures, see financial definitions after note 4

Thomas Eldered, CEO:

Sales and EBITDA developed well and in line with our expectations for the quarter.

”Sales overall developed well and we report the highest ever sales and actually also EBITDA for a quarter. We benefitted somewhat from phasing from the first quarter but different to the strong second quarter last year we did not see any material special positive effects or non-recurring items. While the business mix was somewhat negative, currency tailwinds gave us growth also excluding acquisitions. As we are making significant growth driving expansion investments I was pleased to see the good operating cash flow.

We continue to gain important new business with both new and current customers, especially in the Sterile Liquids segment. Business activity was slightly lower in the Solids & Others segment, particularly in Europe. The Development & Technology segment reported slow growth for development services while even though product rights and IP performed somewhat better than our plans, this was still not as favourable as last year.

The acquisitions we completed last year have generally performed well. Integration has been fully in line with our plans except for the development business in the US where we have seen certain setbacks. In India business was negatively affected towards the end of the quarter in anticipation of general tax reforms. While business activity picked up during the quarter for our highly interesting acquisition in Bengaluru, completed in February, we are still behind our plans.

Our project to implement serialisation capability across the group is progressing according to plan. We have reason to believe that we are well positioned to benefit from this global new requirement. The capacity expansion projects for Sterile Liquids in France and Italy are fully in line with our plans in terms of cost and time to complete whereas we now see a further delay, possibly into next year, of the ramp-up of lyophilisation in Germany.

We see several examples of good performance in terms of sales growth and profitability among our operating companies and we are getting valuable recognition from many customers for our global service offering. This is very promising for the future and we are making good progress in line with our overall objectives. But looking to the short term, certain delays are causing some uncertainty and together with the non-recurring costs in the first quarter this may make it a bit of a challenge to fully reach the margin target for 2017.

The market is providing us with good opportunities for accretive acquisitions and major outsourcing projects. Even though we now have a leading asset base and global footprint we see good and highly interesting opportunities which we intend to explore. Our growth driving strategies will deliver and I’m confident that our long-term objectives will be achieved as we are becoming a global CDMO leader.”

The complete interim report is attached through the link at the end of the press release.

The company invites investors, analysts and media to a web conference (in English) on 25 July at 10:00 am CET, where CEO Thomas Eldered and CFO Henrik Stenqvist will present and comment on the report as well as answer questions.

The report will be available on Recipharm’s website from 07:45 am CET the same day and the presentation from the webcast will be uploaded during the day on the 25 July.

To participate in the web conference, please use the below link: 

Questions may be submitted by dialling below telephone numbers or by typing them in the Q&A box during the conference. If you don’t wish to ask questions by telephone you only need to participate through the link above.

From Sweden: + 46 8 505 963 06
From the UK: + 44 203 139 48 30
From the USA: +1 718 873 90 77

Pin code for participants:

For more information, please visit or contact:
Thomas Eldered, CEO, +46 8 602 52 10
Henrik Stenqvist,, +46 8 602 52 00

This information is published in accordance with the EU Market Abuse Regulation, the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ Stockholm. This information was submitted for publication on 25 July 2017 at 07:45 am CET.  

About Recipharm
Recipharm is a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry employing around 5 000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies. Recipharm’s turnover is approximately SEK 5.3 billion and the company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US and is headquartered in Stockholm, Sweden. The Recipharm B-share (RECI B) is listed on Nasdaq Stockholm.

For more information on Recipharm and our services, please visit