Fagron (FAGR) H1 2025 earnings summary

Executive summary

• H1 2025 revenue reached €476.1 million, representing 11.3% organic growth at constant exchange rates, with all regions and segments contributing, led by LATAM Brands, North America, and Compounding Services.

• Profitability increased by 12.3% to €95 million, with margin improving to 20% due to operational excellence and acquisition synergies.

• Net earnings per share rose 12.7% to €0.62; net profit reached €45.8 million.

• Four acquisitions completed: Bella Corp (Australia), Uni-Chem and SB Trade (Serbia), Active Pharma (UK), and CareFirst (North America), expanding presence in APAC, EMEA, UK, and North America.

• Anazao's Las Vegas facility expansion approved, with $29 million investment over two years, expected to add $150 million revenue capacity and operational in 2028.

Financial highlights

• Revenues increased by 10.9% on a reported basis to €476.1 million; organic revenue growth at CER was 11.3%.

• Gross margin rose by 140bps year-on-year to 63.0%, driven by higher North America revenue share and procurement savings.

• REBITDA was €95.0 million (+12.3%), with REBITDA margin at 20.0% (+30bps); EBIT rose 15.0% to €73.2 million.

• Operating cash flow improved by 25.1% to €52.5 million; free cash flow conversion at 39.9% (adjusted for one-off capex).

• Net debt/EBITDA ratio stable at 1.5x, with net financial debt at €320.6 million.

Outlook and guidance

• Full-year 2025 guidance reiterated: mid- to high-single digit organic revenue growth at CER and slight profitability increase.

• Capex expected at around 3.5% of revenue for FY 2025, excluding one-off investments.

• EMEA: low single-digit organic growth at CER, margin in line with H1 2025.

• LATAM: high single-digit to low double-digit organic growth at CER, margin expected to improve in H2 due to seasonality.

• North America: low double-digit organic growth at CER, EBITDA margin broadly in line with H1 2025; tough comps expected as GLP-1 tailwinds phase out.