(Boursier.com) — Euroapi will have lost more than 25% on the stock market this week, the title falling again by 5% this Friday to 11.55 euros. The company specializing in the development and manufacture of active pharmaceutical ingredients on behalf of health manufacturers disappointed the market this week by announcing its prospects. Remember that the company offers vitamin B12, prostaglandins, oligonucleotides, peptides, corticosteroids and hormones, anti-infectives, opiates (morphine, codeine, thebaine, etc.), analgesics, etc. .
Core EBITDA stood at 120 million euros over the past financial year, up 8.5%, or 12.3% of sales, including the exceptional impact of the temporary suspension of the production of prostaglandins on the Budapest site. Investments amounted to €138.3 million (14.2% of revenue), with major strategic investments made to support EUROAPI’s growth and performance.
Net income was negative at -€15 million, including €28.8 million of exceptional items related to the impairment of assets with no impact on cash.
A volatile and uncertain context
In a “volatile and uncertain” macroeconomic context, Euroapi anticipates for 2023 a growth in turnover of between +7% and +8%, a Core EBITDA margin of between 12% and 14% and investments for an amount between between 120 and 130 million euros…
Management said: “As we invest in accelerating our long-term growth and reduce our dependence on Sanofi, we have adjusted our medium-term outlook as follows: Revenue growth of between +7% and +8% on average over the period 2023-20262 (compared to +6% to +7% between 2021 and 2025 ), driven by double-digit revenue growth with Other Customers (API Solutions and CDMO); A Core EBITDA margin above 20% in 2026 (vs. 2025 initially expected), and above 18% in 2025; 510 million euros of investments (Capex) over the period 2022-25 (unchanged).
“In order to support our overall performance, we are accelerating the transformation of the group with an additional value creation of 50 million euros per year expected by 2026” continued the management… The reactions of analysts were more than reserved in the wake of these adjustments. Deutsche Bank, for example, is only aiming for a price of 14 euros, against 17 previously… The 2022 results were indeed penalized by the temporary suspension of the production of prostaglandins on the Budapest site, enough to postpone to 2026 the “core Ebitda” forecast above 20%.