(AOF) – Euroapi announces that it has revised downwards its forecasts for the year 2023. The specialist in active pharmaceutical ingredients specifies that the growth in its turnover should now be between 3% and 5%, compared to 7%. at 8% previously, the Core Ebitda margin should now be between 9% and 11%, compared to 12.5% and 13.5% previously. The investment objectives remain unchanged, and are between 120 and 130 million euros.
Regarding the sales warning, Euroapi reports that API Solutions’ pricing optimization strategy has recently been affected by “a changing market environment”, with pricing pressure resulting from lower inflation and through inventory reduction programs with certain customers.
For the CDMO activity, turnover is expected to grow at a slower pace than expected, due to lower than expected sales in the fourth quarter. This situation results in particular from “delays or pauses of projects, or reduced project sizes due to financing problems of biotechnology companies.”
Concerning the warning on margins, Euroapi explains that it is mainly linked to lower sales volumes leading to less favorable absorption of fixed costs than initially expected and to an unfavorable margin mix over the rest of the year ( slowdown in CDMO activity).
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