Connect with us

Biotech

Faes Farma’s First Nine Months Profit Rises 12.6% to €71.2 Million

Faes Farma posted gross operating profit of $110.8 million (€95.1 million) through September. The pharma group ended the first nine months of 2021 with total revenues of $374 million (€320.9 million), up 1.5% over the same period of the previous year. The group’s organic growth was driven by the resumption of sales to the licensee of Bilastin in Japan.

Published

on

Faes Farma increased its profits in the first nine months of the year. The Spanish drugmaker posted a profit of $83 million (€71.2 million) between January and September 2021, up 12.6% compared with results for the same period in 2020.

The company attributed the improvement in its net result to the recovery of revenues and the collection of $4 million (€3.5 million) net milestone from Hikma. Profit before tax (PBT) amounted to $97 million (€83.2 million) between January and September 2021, 9.8% higher than in the same period of 2020.

Gross operating profit (Ebitda) stood at $110.8 million (€95.1 million), 3.7% more than in the third quarter of the previous year. Thus, the company closed the period with a margin of 32.2% on sales. Operating profit improved, despite the negative impact related to Covid-19 and the drop in bilastin prices in Japan and Spain, and thanks to cost containment and the bilastin license in the United States.

If you want to find more details about Faes Farma and to read the most important business news in the world, download for free our companion app Born2Invest.

The company posted gross operating profit of $110.8 million (€95.1 million) through September

The pharma group ended the first nine months of 2021 with total revenues of $374 million (€320.9 million), up 1.5% over the same period of the previous year.

The group’s organic growth was driven by the resumption of sales to the licensee of Bilastin in Japan after nine months without purchases due to overstocking in 2020, the growth in global sales of Calcifediol and Mesazalin, the good performance of the subsidiaries in Latin America, and in exports, and the positive evolution of animal nutrition.

SEE ALSO  Burkina Faso launches National Fund for inclusive finance for low-income people

In detail, within the Pharmaceuticals Division, Medicines Spain continues to be the main business, with total revenues of $137 million (€117.9 million). By product, calcifediol stands out, with a 35% increase in turnover. In Portugal, meanwhile, turnover reached $25 million (€21.5 million) in the first nine months of the year, slowing the decline in sales in the third quarter.

Looking ahead to the end of the year, Faes Farma estimates a single-digit growth in net sales (net sales excluding other operating income) and that Ebitda will be between $103.7 million (€89 million) and $108.4 million (€93 million).

Faes Farma expands in Latin America and opens new offices in Bogotá

The company has opened a new office in Bogotá (Colombia), a country in which it has 173 employees, as explained by the company in a statement. The company’s move is part of the “Faes Latam” project, which already has subsidiaries in Central America-Caribbean, Colombia, Chile, Ecuador, Peru, and Mexico.

In Colombia, the group’s sales increased 43% in the first six months of 2021. On the other hand, the company expects gross operating profit (Ebitda) to rise by 52% in 2021. The Colombian subsidiary was acquired in October 2019 and currently ranks twenty-second in sales in the Colombian market. In addition, in the first half of 2021, the subsidiary is one of the three fastest-growing Colombian laboratories.

__

(Featured image by freestocks via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Eva Wesley is an experienced journalist, market trader, and financial executive. Driven by excellence and a passion to connect with people, she takes pride in writing think pieces that help people decide what to do with their investments. A blockchain enthusiast, she also engages in cryptocurrency trading. Her latest travels have also opened her eyes to other exciting markets, such as aerospace, cannabis, healthcare, and telcos.