Fagron (FAGR) H2 2024 earnings summary

Executive summary

• Full-year 2024 revenue reached €872 million, with 13% organic growth at CER and 16.8% total REBITDA growth, led by North America and Compounding Services.

• Margin improved to 20%, up 50bps, reflecting operational excellence and strong performance across all regions.

• Free cash flow conversion was 56.1%, exceeding the midterm target.

• Six acquisitions announced across 2024 and 2025, supporting market consolidation and portfolio expansion.

• Proposed dividend of €0.35 per share, a 17% increase year-on-year.

Financial highlights

• Total revenue reached €872 million, up 14.3% year-on-year; North America led with 24% reported growth.

• Gross margin expanded by 180bps year-on-year, mainly from Brazil brands and North America’s higher margin.

• REBITDA was €174 million (20% margin); EBIT grew 20.3% to €130.7 million (15% margin).

• Net profit increased by 14% to €81 million; EPS was €1.10.

• Net debt-to-EBITDA ratio stable at 1.4x, with net debt rising to €270.7 million due to acquisitions and investments.

Outlook and guidance

• For 2025, expects mid- to high-single digit organic sales growth at CER and slight profitability improvement, weighted to H2.

• EMEA: low single-digit organic growth expected due to market maturity.

• LatAm: high single-digit organic growth anticipated, with margin expansion mainly in H2.

• North America: low double-digit growth expected, with $6 million GLP-1 drug shortage sales in Q1; further upside possible if shortages persist.

• Maintenance CapEx guided at 3.5% of revenues, excluding one-off projects.

• Profitability guidance excludes pending acquisitions not yet closed.