2025 results: Core EBITDA margin improved despite sales headwinds, driven by strong cost discipline

Core Insights - The company reported a net sales decline of 7.0% year-on-year for FY 2025, totaling €848.2 million, with a comparable decline of 5.9% when excluding the impact of the Haverhill site divestment [2][9] - EBITDA improved significantly to €9.9 million from a loss of €43.6 million in 2024, while Core EBITDA rose to €66.2 million, reflecting a 31.2% increase from €50.4 million in 2024 [2][20] - The company anticipates a further decrease of around 10% in net sales for 2026 due to portfolio rationalization and challenging market conditions, while aiming to maintain Core EBITDA margins in line with FY 2025 [3][44] Financial Performance - The operating income for FY 2025 was reported at €(130.6) million, compared to €(120.4) million in 2024, with impairments of assets totaling €77.8 million [2][20] - The net income for FY 2025 was €(211.2) million, worsening from €(130.6) million in 2024, with a basic EPS of €(2.23) compared to €(1.38) in the previous year [2][20] - Free cash flow before financing activities reached €51.5 million, a significant increase from €15.0 million in 2024 [26] Operational Developments - The FOCUS-27 transformation plan is on track, with key actions executed to streamline the API portfolio and enhance operational efficiencies [4][28] - The company successfully divested the Haverhill site, contributing to a sustainable reduction in the cost base [6][28] - Cost control measures led to a €10 million decrease in operating expenses, resulting in a Core EBITDA margin increase to 7.8% from 5.5% in 2024 [5][21] Environmental and Social Responsibility - The company achieved a 33% share of renewable energy consumption in FY 2025, up from 26% in 2024, and reduced GHG emissions (scope 1 and 2) to 83,962 metric tons of CO2e [8][34] - The total recordable injury frequency rate was reported at 4.4, slightly above the target of 2.5, indicating a need for continued focus on workplace safety [35][37] Strategic Outlook - The company is focusing on high-margin complex molecules and plans to optimize its supply chain to enhance competitiveness [31][32] - A restructuring cost range of €110 to €120 million is expected, with a maintained CAPEX envelope of €350 to €400 million planned for 2024 to 2027 [32][44] - The company aims to position itself as a reliable European supplier for complex APIs, emphasizing the importance of resilient supply chains in the pharmaceutical industry [33][31]