Siegfried (SFZN) H1 2024 earnings summary

Executive summary

• Net sales reached CHF 619.9 million, up 3.5% in local currencies (2.1% in CHF), with core EBITDA margin rising to 21.3% and core net profit up 21.8% to CHF 71.7 million.

• Growth was achieved despite headwinds from vaccine business phase-out, destocking, and portfolio optimization.

• Strategic progress included the acquisition of a US-based early-phase CDMO and continued investments in manufacturing capacity and capabilities.

• Strong operating cash flow and free cash flow improvement supported by working capital initiatives.

• Marcel Imwinkelried appointed CEO, effective September 1, 2024.

Financial highlights

• Gross profit rose to CHF 159.9 million, with a margin of 25.7% (up from 24.3%).

• Core EBITDA grew 5.1% to CHF 132.1 million (margin 21.3%).

• Core net profit increased 21.8% to CHF 71.7 million year-over-year.

• Free cash flow improved significantly to CHF 52.5 million, up 266.7% year-over-year.

• Net debt to core EBITDA reduced to 1.3 from 1.64 in the prior period.

Outlook and guidance

• 2024 guidance reaffirmed: low single-digit % sales growth in local currencies and core EBITDA margin at or above 2023.

• Capital expenditures expected at the lower end of guidance for 2024.

• Midterm outlook: profitable growth at or above market, with stepwise margin and cash generation expansion.