Siegfried and ROI: Swiss firm sees revs soar and says new API biz will drive growth
The Swiss pharmaceutical, active pharmaceutical ingredient (API) and intermediates manufacturer posted sales of CHF280.6m ($287.4m) for the 12 months ended December 31, 2015. This is up 52.4% on revenue generated in the previous fiscal year.
Like other Swiss firms, Siegfried said the revaluation of the Swiss franc last January and subsequent fluctuations against the Euro had a negative impact on revenue.
A spokesman told us "We are in the good situation, that we have a high natural hedge greater than 90% in EUR and USD combined. In 2015 in particular we did not see a negative FX-effect on our operating results."
Net profit for the year increased, climbing 1.4% to CHF39.1m.
Siegfried attributed the disparity between revenue and profit growth to the impact of lower tax credits and higher financial expenses.
In May 2015, Siegfried bought the majority of German chemical firm BASF’s API business.
The deal, which was funded through the placement of a CHF60m bond provided by RAG-Beteiligungsgesellschaft mbH and a CHF100m public bond, added 100 APIs to Siegfried’s portfolio and three manufacturing facilities to its network.
API growth
Siegfried predicted the acquired BASF businesses would drive growth in 2016.
It explained that the API units are complimentary to its existing operations and customer base, including those gained through the takeover of Hameln Pharmaceuticals GmbH and Hameln RDS GmbH in 2014.
It also said: “The acquisition of BASF’s API business and the three connected sites signifies the last piece in implementing the “Transform” strategy: Siegfried has reached necessary critical size, which we consider to be clearly in excess of CHF 500m in sales.”
Siegfried predicted that sales will grow 40% in 2016 and said EBITDA would be around CHF100mmillion and that net profit will “develop positively.”
The firm also told us "critical size is crucial in our industry. With the acquisition of the BASF pharma supply business we have achieved this."
