Recipharm AB publishes its interim report January-March 2018

January – March 2018

  • Net sales amounted to SEK 1,513 million (1,328), an increase of 14%
  • EBITDA increased by 57% and amounted to SEK 250 million (159) corresponding to an EBITDA margin of 16.5% (12.0)
  • Operating profit (EBIT) amounted to SEK 120 million (46)
  • Profit after tax amounted to SEK 45 million (1) corresponding to a net margin of 3% (0)
  • Earnings per share amounted to SEK 0.70 (-0.04) before dilution and SEK 0.70 (-0.04) after dilution
  • Net debt to Equity was 0.8 (0.6)
  • Acquisition of the remaining 26% of Nitin Lifesciences Ltd
Key figures Jan – Mar   April 17-Mar 18     Jan - Dec  
SEK million 2018          2017           Change in %   2017 Change in %
Net sales 1,513 1,328 +14 5,516 5,332 +4
EBITDA1/ 250 159 +57 820 730 +12
EBIT1/ 120 46 +163 66 -9 N/A
EBITDA margin (%)1/ 16.5 12.0   15.0 13.7  
Earnings per share (SEK)1/ 0.70 -0.04   -1.84 -2.70  
Return on equity (%), adjusted1/ 2.5 4.1     1.6  
Equity per share (SEK)1/ 73.7 76.6     71.9  
Equity ratio (%)1/ 40.0 46.9     41.5  
Net debt1/ 3,871 3,138     3,422  
Net debt to Equity1/ 0.8 0.6     0.7  
Net debt to EBITDA1/ 4.7 4.1     4.7  

1/ APM: Alternative Performance Measures 

Thomas Eldered, CEO:

Strong start

“We see solid growth and performance in our ongoing manufacturing and development business, while we are just beginning to deliver from major expansion investments. Sales for the quarter was an all-time high and first time ever over SEK 1.5 billion. Growth in continuing operations, adjusted for currency translation effects and acquisitions was about 10 per cent. All segments report organic growth and improved EBITDA-margin. EBITDA was the highest ever for a quarter and SEK 90 million higher than any previous first quarters. EBITDA-margin for the group increased to 16.5 per cent.

In the Sterile Liquids segment, we accounted for project related start-up costs but we also started to deliver from the expanded lyophilization capacity in Wasserburg, Germany and, ahead of plan, from the expanded blow-fill-seal capacity in Kaysersberg, France. The impact in the quarter was however minor. We continued to have shortage of certain raw materials but to a lesser extent than in previous periods.

Continuing operations in the Solids and Others segment generated good growth. Sales from the new outsourcing contract in Leganés, Spain started at the end of January. Good contributions to growth also came elsewhere from new contracts, primarily with large pharma companies. Temporary positive phasing together with new contracts contributed favourably to the improved EBITDA-margin of 15 per cent.

Sales in the Development & Technology segment showed good growth, mainly caused by increased sales based on our own IP and product rights. During the quarter we started to reorganize and streamline our group-wide development services organisation, a work that will continue during subsequent quarters.

New contracts and increased sales required increased working capital but operating cash flow improved by SEK 72 million. Our net debt to equity ratio increased to 0.8, in line with our policy. As projects finish we will see less capex and supported by increased profit, leverage will gradually decrease.

The markets we operate in remain challenging, but I am convinced that we will benefit from the global reach and our competitive value proposition to customers. With our important investments we are taking leadership in selected markets and we will explore opportunities to add further technologies and differentiating businesses to our customer offering. There are tremendous opportunities in our global structure and we are determined to explore these.”

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 27 April 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.  

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

From Sweden: +46 8 566 426 51
From Denmark: +45 354 455 77
From Norway: +47 235 00 243
From the UK: +44 333 300 08 04
From Germany: +49 691 380 34 30
From Switzerland: +41 225 809 034
From France: + 33 170 750 711
From Portugal: +351 210 609 105
From India: +91 226 187 51 27
From Italy: +39 023 601 38 21
From Israel: +972 372 076 79
From the USA: +1 631 913 14 22 

Pin code for participants:

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

This information is information that Recipharm AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. This information was submitted for publication on 27 April 2018 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 5.0 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