Germany's PharmaSGP Raises Sales Guidance In 'Record Year'
Executive Summary
European Consumer health player PharmaSGP is well on the way to achieving new record revenues in 2022, and is working to maintain this upward trajectory over the medium and long term.
Germany’s PharmaSGP GmbH has raised its sales guidance for 2022 after a record performance in the third quarter and a positive outlook for the final three months of the year.
The firm’s management board said full-year sales were now forecast to reach between €82m-€86m ($85m-$89m), up from the €78m-€82m range expected previously. The guidance is maintained for the adjusted EBITDA margin, which is forecast to fall between 30-33 %. That equates to an adjusted EBITDA of between €24.6m-€28.4m.
These expectations are subject to the presumptions that the geopolitical situation in Eastern Europe – related to the war in Ukraine – will not lead to any material negative effects on the company’s markets, PharmaSGP said, and that the Covid-19 pandemic will not have any additional adverse impact on the economy as a whole or on the OTC market.
PharmaSGP’s CFO Michael Rudolf said while the firm was well on the way to achieving new record revenues in 2022, it was working to maintain this upward trajectory over the medium and long term. “We have already put in place the necessary structural and financial conditions that will enable us to strengthen our unique European platform with further acquisitions and achieve further momentum for growth,” he stated.
Double-Digit Growth
In the opening nine months of the year, PharmaSGP’s sales jumped 39% to €63.9m. This helped to boost adjusted EBITDA by 54% to €20.4m.
“Thanks to our platform strategy, even in a market environment that has proven highly challenging for many of our competitors, we have succeeded in recording highly profitable growth,” commented CEO Natalie Weigand. “This is impressively demonstrated by the continued improvement in the EBITDA margin which reached just under 38% in the third quarter. The results we have achieved in the first nine months prove that with this strategy, we can create substantial added value for our investors.”
Looking at the nine-month performance by market, Germany was the stand-out performer, with sales in the country jumping by 45.1% to €46.1m. PharmaSGP significantly expanded its OTC portfolio in Germany last year with the acquisiton of the Baldriparan, Formigran, Spalt and Kamol brands from GlaxoSmithKline.
Turnover in Italy advanced by 22.1% to €7.7m, while sales in Austria improved by 19.3% to €7.0. The remaining group revenue was generated in smaller markets, which combined posted sales up by 40.8% to €3.2m.
Breaking down the nine-month performance by business, the dominant Health Brands unit – which comprises PharmaSGP’s consumer health interests – reported a 43.4% rise in turnover to €61.3m. Sales at the Beauty Brands unit fell back by 22.5% to €2.6m.