Fagron (FAGR) Q1 2025 TU earnings summary

Executive summary

• Achieved record Q1 2025 revenue of €238.7 million, up 14.1% year-over-year, with strong momentum and all regions and segments contributing.

• Organic growth at CER reached 12.6%, led by North America and exceptional Latin America performance.

• Strategic acquisitions, including CareFirst, EuroOTC, and Guinama, closed and integrations progressing as planned.

• FDA confirmed corrective actions at Wichita facility are adequate, pending site visit.

• Operational excellence initiatives and execution of strategic plans ongoing.

Financial highlights

• Q1 2025 revenue reached €238.7 million, up 14.1% year-over-year; organic growth at CER was 12.6%.

• North America revenue rose 22.8% to €108.4 million; Latin America up 2.7% to €42.5 million; EMEA up 10.4% to €87.9 million.

• Compounding Services segment grew 17.5%, Essentials 13.1%, and Brands 6.9% year-over-year.

• Revenue growth supported by all regions and recent acquisitions; FX headwinds from the Brazilian real partially offset by US dollar.

Outlook and guidance

• FY 2025 guidance reaffirmed: mid- to high-single digit organic sales growth at CER and slight profitability improvement.

• Capex expected at ~3.5% of revenue for FY 2025, excluding one-off capex projects.

• H2 2025 profitability anticipated to be higher than H1.

• Guidance assumes stable market conditions and excludes not-yet-closed acquisitions and one-off capex projects.