Press release: STADA's excellent results in H1 2023 indicate a record annual profit of €1 bn, driven by Consumer Healthcare and Specialty
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STADA's excellent results in H1 2023 indicate a record annual profit of €1 bn, driven by Consumer Healthcare and Specialty
- Double-digit growth journey continues with 16% sales increase to €2.1bn1 and 30% EBITDA to €509 million1 in first six months of 2023
- Organic growth in Consumer Healthcare is largest contributor to record performance; Specialty segment with double-digit growth as well. Market-share gains in Generics
- STADA CEO Peter Goldschmidt: “STADA’s purpose, values and strategy are the base for our continued double-digit growth in sales and earnings. With this momentum, we are well on track to exceed over €4 billion sales and €1 billion EBITDA this year.”
Bad Vilbel – 15 August 2023 – STADA continued its track record of double-digit sales and profit growth during the first half of 2023. The best half-year results to date were driven by above-market performance across STADA’s three strategic business segments: Consumer Healthcare, Generics and Specialty Pharmaceuticals. All regions contributed to the sales and profit development.
Group sales increased by 16% to €2.1 billion1 while earnings (EBITDA) improved by 30% to €509 million1 in the first six months of 2023. H1 is another proof point for STADA’s continuous growth. The company almost doubled its profits in the past five years.
“STADA’s purpose, values and strategy are the base for our continued double-digit growth in sales and earnings. With this momentum, we are well on track to exceed over €4 billion sales and €1 billion EBITDA this year,” commented CEO Peter Goldschmidt. “Our unique culture and superior employee engagement drives our performance. With the good results of H1 and our strong pipeline, we continue our successful growth journey. Furthermore, our sustainability rating confirms that we are among the top 15% of pharmaceutical companies according to an independent ESG assessment,” Goldschmidt continued.
Major milestones achieved in supporting patient access to medicines
During the first half of 2023, STADA achieved major milestones in supporting patient access to the medicines they need. The US Food and Drug Administration cleared exports of the biological drug substance epoetin to the US from a company facility in Uetersen, Germany. At around the same time, authorities in the European Union confirmed that the new factory in Tuy Hòa, Vietnam, complies with stringent European good manufacturing practice (GMP) standards which opens up exports to Europe for continued supply reliability. Meanwhile, construction on the supply-chain hub in Turda, Romania, is progressing well; with an investment of more than €50 million this will also add to the substantial capacity of STADA’s supply-chain network in Europe.
Through initiatives such as photovoltaic cells in Vietnam and industry-leading design concepts in Turda, STADA continues to advance its contribution to the sustainable supply of medicines. An improvement in reducing STADA´s risk rating from 26.7 in the first half of 2022 to 21.6 in the first six months of this year was issued by the independent Sustainalytics agency. The forthcoming publication of the group’s second Global Sustainability Report will highlight in detail numerous environmental, social and governance initiatives around the world.
In September the group will also unveil the results of its 2023 STADA Health Report – the ninth since publication began. This unique survey with more than 32,000 participants across 16 countries will provide valuable insights into the physical and mental health and wellbeing of the population. In doing so, STADA is closely aligned with the United Nations Sustainable Development Goal 3 on Good Health and Wellbeing while delivering on STADA’s purpose of Caring for People’s Health as a Trusted Partner.
Three strategic business segments drive consistent growth
In the area of Consumer Healthcare several launches and line extensions, coupled with successful integration of recent acquisitions, propelled a 19% adjusted increase to €870.6 million sales in the first half of 2023. Having outperformed the market in several product categories, Consumer Healthcare was the largest of STADA’s three strategic business segments, accounting for 42% of group turnover. Gaining share in an expanding market was augmented by many new product offerings, recent business development activities, such as distribution agreements for Sanofi’s entire consumer healthcare portfolio in around 30 European and Eurasian countries2. STADA’s status as a go-to-partner in consumer healthcare was further confirmed by the announcement in mid-July this year of the acquisition of another basket of brands from Sanofi, including Antistax, Lomudal, Omnivit and Opticrom eye drops3.
In the field of Generics, launches including the anticoagulant apixaban in countries such as the UK, the diabetes drug sitagliptin in several European markets, the antiparasitic agent permethrin and the pain-reliever tapentadol contributed to STADA’s adjusted sales advancing by 8% to €756.2 million in the first half of 2023. Generics accounted for 37% of group sales. Consistent supply reliability through investment in strong inventory levels, internal capacity building and dual sourcing of active ingredients enabled STADA to step in to meet demand. This resulted in STADA outperforming the market and capturing retail share in several countries. Market-share gains were made in numerous countries, including Austria, Bulgaria, Croatia, Denmark, France, Lithuania, Romania, Serbia, Slovenia and Switzerland. Several launches in therapeutic categories such as cardiovascular and diabetes added to above-market growth.
Specialty sales are ahead by 24% on an adjusted basis to €432.1 million in the first half of this year and made up 21% of group sales. During the first half of 2023, STADA’s Specialty business achieved another milestone with the entry into Europe’s ophthalmology market by introducing Ximluci, a biosimilar alternative to the reference brand Lucentis, in several countries, including in Germany and the UK. Ximluci is STADA’s sixth marketed biosimilar, with previous launches such as Hukyndra (adalimumab) continuing to gain traction and support patient access in more countries. The Movymia (teriparatide) osteoporosis therapy continues to lead the biosimilars market, while work continues towards bringing the next biosimilar candidate in the pipeline, ustekinumab, to market.
A further milestone was reached in that more than 1,000 patients are now being treated with STADA’s Lecigon pump combining three proven active ingredients for late-stage Parkinson’s disease which has recently been launched in further countries including Bulgaria, Ireland, Spain and Switzerland. In nephrology, the first EU-approved treatment for the rare, chronic and debilitating kidney disease IgA nephropathy, Kinpeygo, is reaching more patients, and work continues on bringing this therapeutic option to more countries across Europe.
Strong basis for consistent, sustainable growth
STADA has a rich pipeline across Generics and Specialty/Biosimilars as well as Consumer Healthcare products that will contribute strongly to the net sales development until 2030. A constant flow of new products feeds the commercialization engine and ensures future growth. Resources are reallocated, assets in the group leveraged, and a much bolder and more focused approach to licensing and acquiring high-potential products is taken.
The group can build on strong capabilities in small-molecule development enabling cost leadership, and is generally agnostic as to whether these products are developed externally or internally. In fact, one of the benefits of commercial agility is that the group can close attractive product deals more easily being a partner of choice for Europe. Since 2017, STADA has invested in building a global BD&L team, hiring more than 20 experienced BD&L leaders with dedicated regional responsibility and expertise – resulting in an industry-leading close to 100 BD&L deals per year in the recent past.
“STADA´s bright future is once again confirmed by our strong H1 results with double-digit growth in sales and earnings. Our purpose and values are the base for our top employee engagement results, leading to agile implementation of our strategy with above market growth in Consumer Healthcare, Specialty and Generics,” Goldschmidt summarized.
This announcement includes projections and other “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and we do not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
This announcement includes certain financial measures that are not recognized by IFRS or any other generally accepted accounting principles and that may not be permitted to appear on the face of the financial statements or footnotes thereto (“Non-GAAP Measures”). Non-GAAP Measures should not be considered as alternatives to performance measures derived in accordance with IFRS or any other generally accepted accounting principles, may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools.
1 All Sales and EBITDA figures are adjusted for special items and currency effects unless otherwise noted; forward-looking statements also exclude any non-recurring one-off expenses and are based on assumptions made at the time of this press release (incl. exchange rates similar to the average of the reporting period H1 2023).
2 STADA and Sanofi strike CHC distribution agreement | STADA
3 STADA is acquiring additional brands from Sanofi | STADA
About STADA Arzneimittel AG
STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. The company focuses on a three-pillar strategy consisting of consumer healthcare products, generics and specialty pharma. Worldwide, STADA Arzneimittel AG sells its products in approximately 120 countries. In financial year 2022, STADA achieved group sales of EUR 3,797.2 million and reported earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 884.7 million. As of 31 December 2022, STADA employed 13,183 people worldwide.
Additional information for journalists:
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Additional information for capital market participants:
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Or visit us on the Internet at www.stada.com/investor-relations
