Siegfried (SFZN) H2 2024 earnings summary

Executive summary

• Achieved continued profitable growth in 2024, with net sales reaching CHF 1,294.6 million, up 3.0% in local currencies and 1.8% in CHF, and Core EBITDA margin improving to 22.1% from 21.5% in the prior year.

• Core Net Profit increased 24% to CHF 158.9 million, with underlying business growth (excluding vaccines, destocking, and portfolio optimization) at 8%-9%, significantly above market.

• Operational excellence included supply reliability above 90%, a 50% reduction in carbon emissions over four years, and 48% of management positions held by women.

• Strategic expansion in the US and early-phase development through the Grafton and Curia Wisconsin acquisitions, advancing the EVOLVE+ strategy focused on M&A, technology, and sustainability.

• Investments in property, plant, equipment, and intangibles reached CHF 180.8 million, supporting future growth.

Financial highlights

• Core EBITDA rose 4.5% to CHF 285.6 million (22.1% margin), Core EBIT reached CHF 200.9 million (15.5% margin), and Core Net Profit increased to CHF 158.9 million (12.3% margin).

• Core gross profit margin increased to 25.4% from 25.2% year-over-year.

• Free cash flow was negative CHF 11.6 million, impacted by increased investments and a one-time tax payment.

• Net debt/Core EBITDA at 1.7; both hybrid convertible bonds (CHF 80 million) converted, strengthening the balance sheet.

• Operating cash flow was CHF 168.8 million, down from CHF 208.6 million, due to higher tax payments and timing of revenue.

Outlook and guidance

• 2025 guidance: mid-single-digit sales growth in local currencies and Core EBITDA margin above 22%.

• CapEx expected to be in the low teens percent of net sales; effective tax rate below 20%.

• Operating cash flow expected to normalize as one-time tax effects and phasing reverse.

• Currency headwind for 2025 estimated at 0–0.5%; revenue split between H1 and H2 expected to be more pronounced.

• No significant top-line impact expected from portfolio optimization in Drug Products for 2025.