Bachem: New sales record and sharp jump in profits

26-Aug-2016 - Switzerland

Bachem Group increased its sales in the first half of 2016 by 13.9% to a new record high of 113.4 million CHF (H1 2015: 99.6 million CHF). In local currency, sales grew 11.4%. Generics sales rose by approx. 9% to 53.9 million CHF. In the research ingredients business, catalog products and custom synthesis performed well in the face of a challenging, highly competitive market environment. Bachem achieved excellent local sales growth of more than 40% in the New Chemical Entities (NCEs) business. Operating profits rose despite an increase in operating costs due to expansion-related projects and non-recurring items, with EBITDA coming in at 29.8 million CHF and EBIT at 20.8 million CHF. Net income advanced to 17.1 million CHF. With this bottom-line growth of 35.5%, the Group continued its record of unbroken profit growth from the previous years. Judging by the high market demand, the good order backlog and the steady increase in utilization of new capacity, fiscal 2016 should be a very good year.

Outlook: Booming peptide market

Demand for peptide-based active ingredients remains strong. New applications for peptides are constantly being investigated and supported by novel drug delivery technologies. Never before were so many peptide projects in the clinical pipeline as there are today. Bachem is seeking to strengthen its market leadership through selective capacity expansion and new hires. It will maintain its strong commitment to quality, reliability and customer partnerships to this end. Assuming a stable ec onomy and based on t oday's exchange rates, full-year sales in local currency should exceed last year's result by more than 10% and therefore be above the long-term target range of 6% to 10% p.a. Management also expects another year-on-year improvement in profitability despite an increase in costs due to capacity expansion and new hires.

https://www.bionity.com/en/news/160292/bachem-new-sales-record-and-sharp-jump-in-profits.html