NEWS RELEASE
RECORDATI: THE SHAREHOLDERS' MEETING APPROVES THE 2023 FINANCIAL
STATEMENTS AND THE DIVIDEND OF € 1.20 PER SHARE (+4.3% vs 2022)
- The Shareholders' Meeting has approved the 2023 Financial Statements
- A dividend distribution of € 1.20 per share was approved (+4.3% vs 2022), of which € 0.57 was paid in November 2023
- The Remuneration Policy for 2024 was approved and favourable note taken of the 2023 remuneration
- The authorisation to buy-back and dispose of treasury stock was renewed
- Revenue for the first quarter was € 607.8 million, +10.2% vs the first quarter of 2023 or +10.9% excluding the revenue contribution from Avodart®/Combodart® of € 27.5 million and at constant exchange rate
Milan, 22 April 2024 - The Ordinary Shareholders' Meeting of Recordati S.p.A. was held today, which among others approved the Company's 2023 Financial Statements, as proposed by the Board of Directors. The annexed tables provide a summary of the results of the 2023 Financial Statements as previously illustrated in the press release of 19 March 2024. In 2023 consolidated net revenue was € 2,082.3 million, +12.4% compared to 2022 or +14.0% on a like-for-like(1) basis at constant exchange rates (+9.6% excluding Türkiye). EBITDA(2) rose to € 769.6 million, up 14.4% over 2022, with a margin of 37.0%,. Net Income at € 389.2, at 18.7% of net revenue, was up 24.6% over the previous year and Adjusted Net Income (3), reached € 524.6 million, growing 10.8% over last year.
Based on the proposal of the Board of Directors, the Shareholders' Meeting further resolved a dividend to shareholders of € 0.63 per share, in full balance of the interim 2023 dividend of € 0.57, for all shares outstanding at the ex-dividend date, excluding treasury shares in the portfolio at that date (payment on 22 May 2024 and record date 21 May 2024), with ex-dividend on 20 May 2024 (against presentation of coupon no. 33). The full 2023 dividend is therefore € 1.20 per share (€ 1.15 per share in 2022).
Additional significant resolutions
Remuneration policy for 2024 and report on fees paid in 2023
The Shareholders' Meeting expressed a favourable vote on the Remuneration Policy for 2024 pursuant to Art. 123-ter of Legislative Decree 58/98 and favourable note was taken of the report on the compensation paid in relation to the implementation, in 2023, of the policy approved by the Shareholders' Meeting of 21 April 2023, both of which are contained in the Remuneration Report available on the Company website.
Renewal of the authorisation for the purchase and disposal of treasury stock
The Shareholders' Meeting authorised the purchase and disposal of treasury stock until the approval by the Shareholders' Meeting of the Financial Statements as at 31 December 2024. In line with previous years, this proposal fulfils multiple purposes:
RECORDATI INDUSTRIA CHIMICA E FARMACEUTICA S.p.A.
Registered office VIA M. CIVITALI, 1 20148 MILAN, ITALY TEL. +39 0248787.1 FAX +39 0240073747
SHARE CAPITAL € 26,140,644.50 fully paid up
BUSINESS REGISTER OF MILAN, MONZA, BRIANZA and LODI 00748210150
TAX CODE/VAT NO. 00748210150
Company subject to management and coordination by Rossini Luxembourg S.àr.l
- fulfilling the obligations arising from the stock option and/or financial instruments (performance shares) based plans already adopted by the Company and other incentive plans which may be approved in the future;
- supporting business initiatives, since the authorisation to purchase treasury stock, if granted, will allow transactions such as the sale, contribution and exchange of treasury stock in order to acquire stakes in companies and/or to reach agreements with strategic partners within the Group's expansion objectives;
-
supporting the Recordati's shares liquidity, in order to promote the regular course of the shares' negotiations and avoid price fluctuations inconsistent with the market trend.
The maximum of number of shares available for purchase is 3,500,000 and, in any case, on the condition that, at any time, the total face value of the treasury stock held by the Company never exceeds one fifth of the share capital, also considering the shares that may be held by the subsidiaries, for a potential maximum outlay of € 200,000,000, with a minimum consideration not less than the face value of the Recordati share (€ 0.125) and a maximum consideration not greater than the average of the official stock exchange prices in the five sessions prior to the purchase, plus 5%. Purchases, if any, may be completed through the assignment of specific positions to specialised intermediaries and must be performed in compliance with applicable law and according to the practices permitted by Consob in line with the provisions of art. 13 of EU Regulation 596/2014, where applicable.
At 19 April 2024, the Company has 2,758,646 shares in treasury stock, which amounts to 1.3% of the current share capital.
First quarter 2024
Revenue for Q1 was €607.8 million, +10.2% vs Q1 2023, or +10.9% excluding revenue contribution from Avodart®/Combodart® of €27.5 million and at constant exchange rate; this reflects a strong start of the year for both business units and phasing patterns in Türkiye and International business similar to Q1 2023; adverse FX impact in Q1 of €31.2 million (mostly on Türkish Lira, offset by price inflation). Recordati's full disclosure of the financial results for the first quarter of 2024 will be published on 9 May 2024.
- FY 2023 pro-forma growth calculated adding Q1 2022 revenue of EUSA Pharma and excluding FY 2023 revenue of Avodart® and Combodart®/ Duodart®(trademarks owned by or licensed to the GSK group of companies).
- Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
- Net income excluding the amortization and write-down of intangible assets (except software) and goodwill, non- recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory pursuant to IFRS 3, and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects.
Recordati (Reuters RECI.MI, Bloomberg REC IM) is an international pharmaceutical group listed on the Italian Stock Exchange (ISIN IT 0003828271) uniquely structured to bring treatment across specialty and primary care, consumer healthcare, and rare diseases. We believe that health, and the opportunity to live life to the fullest, is a right, not a privilege. We want to support people in unlocking the full potential of their lives. We have fully integrated operations across research & development, chemical and finished product manufacturing through to commercialisation and licensing. Established in 1926, Recordati operates in approximately 150 countries across EMEA, Americas and APAC
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regions. At the end of 2023, Recordati employed over 4,450 people and consolidated revenue of € 2,082.3 million. For more information, please visit www.recordati.com
Investor Relations | Investor Relations | Media Relations Brunswick: |
Eugenia Litz | Lucia Abbatantuoni | Barbara Scalchi / Andrea Mormandi |
+44 7824 394 750 | +39 337 1025645 | +39 02 9288 6200 |
investorelations@recordati.it | investorelations@recordati.it | recordati@brunswickgroup.com |
This document contains forward-looking statements relating to future events and future operating, economic and financial results of the Recordati group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circumstances. Actual results may therefore differ materially from those forecast as a result of a variety of reasons, most of which are beyond the Recordati group's control. The information on the pharmaceutical specialties and other products of the Recordati group contained in this document is intended solely as information on the activities of the Recordati Group, and, as such, it is not intended as a medical scientific indication or recommendation, or as advertising.
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RECORDATI GROUP
Summary of consolidated results prepared in accordance with International Financial Reporting
Standards (IFRS)
(thousands of €)
INCOME STATEMENT | 2023 | 2022 | Change % |
NET REVENUE | 2,082,331 | 1,853,307 | 12.4 |
Cost of sales | (659,707) | (566,737) | 16.4 |
GROSS PROFIT | 1,422,624 | 1,286,570 | 10.6 |
Selling expenses | (472,857) | (462,665) | 2.2 |
Research and development expenses | (255,747) | (220,102) | 16.2 |
General and administrative expenses | (128,253) | (109,493) | 17.1 |
Other income/(expenses), net | (7,759) | (56,984) | (86.4) |
OPERATING INCOME | 558,008 | 437,326 | 27.6 |
Financial income/(expenses), net | (66,972) | (35,891) | 86.6 |
PRE-TAX INCOME | 491,036 | 401,435 | 22.3 |
Income taxes | (101,822) | (89,099) | 14.3 |
NET INCOME | 389,214 | 312,336 | 24.6 |
Adjusted gross profit (1) | 1,481,571 | 1,336,381 | 10.9 |
Adjusted operating income (2) | 626,593 | 536,060 | 16.9 |
Adjusted net income (3) | 524,591 | 473,306 | 10.8 |
EBITDA (4) | 769,631 | 672,750 | 14.4 |
Net income attributable to: | |||
Equity holders of the Parent | 389,214 | 312,336 | 24.6 |
Non-controlling interests | 0 | 0 | 0.0 |
EARNINGS PER SHARE (euro) | 2023 | 2022 | Change % |
Basic | € 1.893 | € 1.519 | 24.6 |
Diluted | € 1.861 | € 1.494 | 24.6 |
- Gross profit adjusted by the impact of non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
- Net income before income taxes, financial income and expenses and non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
- Net income excluding the amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory pursuant to IFRS 3, and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects.
- Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
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COMPOSITION OF REVENUE | 2023 | 2022 | Change % |
Total | 2,082,331 | 1,853,307 | 12.4 |
Italy | 317,144 | 277,322 | 14.4 |
International | 1,765,187 | 1,575,985 | 12.0 |
Pending completion of independent and statutory audits.
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RECORDATI GROUP
(€ thousands)
Reconciliation of Net income to EBITDA(1)
2023 | 2022 | |
Net income | 389,214 | 312,336 |
Income taxes | 101,822 | 89,099 |
Financial income/(expenses), net | 66,972 | 35,891 |
Non-recurring operating expenses | 9,638 | 48,923 |
Non-cash charges from PPA inventory uplift | 58,947 | 49,811 |
Adjusted operating income (2) | 626,593 | 536,060 |
Amortization and write-downs | 143,038 | 136,690 |
EBITDA(1) | 769,631 | 672,750 |
- Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill, non-recurring items and non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
- Net income before income taxes, financial income and expenses and non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory according to IFRS 3.
Reconciliation of Net income to Adjusted Net income(1)
2023 | 2022 | |
Net income | 389,214 | 312,336 |
Amortization and write-downs of intangible assets | 112,227 | 107,415 |
(excluding software) and goodwill | ||
Tax effect | (24,341) | (20,209) |
Non-recurring operating expenses | 9,638 | 48,923 |
Tax effect | (2,433) | (12,984) |
Non-cash charges from PPA inventory uplift | 58,947 | 49,811 |
Tax effect | (14,749) | (9,781) |
Monetary net (gain)/losses from hyperinflation | (1,546) | (4,506) |
Tax effect | 371 | 2,301 |
Non-recurring tax income | (2,737) | 0 |
Adjusted net income(1) | 524,591 | 473,306 |
- Net income excluding the amortization and write-downs of intangible assets (except software) and goodwill, non-recurring items, non-cash charges arising from the allocation of the purchase price of EUSA Pharma to the gross margin of acquired inventory pursuant to IFRS 3, and monetary net gains/losses from hyperinflation (IAS 29), net of tax effects.
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RECORDATI GROUP
Summary of consolidated results prepared in accordance with International Financial Reporting
Standards (IFRS)
(thousands of €)
ASSETS | 31.12.2023 | 31.12.2022 |
Property, plant and equipment | 178,657 | 159,184 |
Intangible assets | 1,938,197 | 1,758,173 |
Goodwill | 778,350 | 780,057 |
Other equity investments and securities | 21,555 | 28,871 |
Other non-current assets | 12,458 | 9,556 |
Deferred tax assets | 76,674 | 76,895 |
TOTAL NON-CURRENT ASSETS | 3,005,891 | 2,812,736 |
Inventories | 404,831 | 424,080 |
Trade receivables | 445,193 | 361,898 |
Other receivables | 99,401 | 63,915 |
Other current assets | 19,924 | 15,387 |
Derivative instruments measured at fair value | 11,079 | 23,603 |
Cash and cash equivalents | 221,812 | 284,734 |
TOTAL CURRENT ASSETS | 1,202,240 | 1,173,617 |
Non-current assets held for sale | 0 | 12,470 |
TOTAL ASSETS | 4,208,131 | 3,998,823 |
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RECORDATI GROUP
Summary of consolidated results prepared in accordance with International Financial Reporting
Standards (IFRS)
(thousands of €)
EQUITY AND LIABILITIES | 31.12.2023 | 31.12.2022 |
Share capital | 26,141 | 26,141 |
Share premium reserve | 83,719 | 83,719 |
Treasury shares | (127,970) | (149,559) |
Reserve for derivative instruments | (286) | 5,249 |
Translation reserve | (264,700) | (205,018) |
Other reserves | 61,219 | 62,260 |
Profits carried forward | 1,636,451 | 1,524,099 |
Net income | 389,214 | 312,336 |
Interim dividend | (117,396) | (112,979) |
Shareholders' equity attributable to equity holders of the | 1,686,392 | 1,546,248 |
Parent | ||
Shareholders' equity attributable to non-controlling interests | 0 | 0 |
TOTAL SHAREHOLDERS' EQUITY | 1,686,392 | 1,546,248 |
Loans - due after one year | 1,353,216 | 1,341,549 |
Provisions for employee benefits | 21,239 | 19,418 |
Deferred tax liabilities | 144,208 | 167,865 |
TOTAL NON-CURRENT LIABILITIES | 1,518,663 | 1,528,832 |
Trade payables | 263,979 | 224,703 |
Other payables | 174,407 | 251,136 |
Tax liabilities | 67,110 | 33,615 |
Other current liabilities | 5,307 | 5,740 |
Provisions for risks and charges | 16,596 | 16,209 |
Derivative instruments measured at fair value | 19,993 | 17,369 |
Loans - due within one year | 355,752 | 291,546 |
Short-term debts to banks and other lenders | 99,932 | 83,425 |
TOTAL CURRENT LIABILITIES | 1,003,076 | 923,743 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 4,208,131 | 3,998,823 |
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RECORDATI GROUP
Summary of consolidated results prepared in accordance with International Financial Reporting
Standards (IFRS)
(thousands of €)
CASH FLOW | 2023 | 2022 | |
OPERATING ACTIVITIES | |||
Net income | 389,214 | 312,336 | |
Income taxes | 101,822 | 89,101 | |
Net interest | 67,879 | 30,679 | |
Depreciation of property, plant and equipment | 28,875 | 27,289 | |
Amortization of intangible assets | 113,795 | 98,467 | |
Write-downs | 368 | 10,934 | |
Equity-settledshare-based payment transactions | 10,870 | 8,251 | |
Other non-monetary components | 61,970 | 70,751 | |
Change in other assets and other liabilities | (8,211) | (16,811) | |
Cash flow generated/(used) by operating activities | |||
before change in working capital | 766,582 | 630,997 | |
Change in: | |||
- | inventories | (50,337) | (65,801) |
- | trade receivables | (100,565) | (21,175) |
- | trade payables | 40,269 | 25,589 |
Change in working capital | (110,633) | (61,387) | |
Interest received | 5,103 | 1,938 | |
Interest paid | (70,339) | (20,093) | |
Income taxes paid | (105,394) | (89,764) | |
Cash flow generated/(used) by operating activities | 485,319 | 461,691 | |
INVESTMENT ACTIVITIES | |||
Investments in property, plant and equipment | (29,687) | (23,887) | |
Disposals of property, plant and equipment | 329 | 1,156 | |
Investments in intangible assets | (353,577) | (72,452) | |
Disposals of intangible assets | 317 | 1,318 | |
Acquisition of holdings in subsidiaries | 0 | (673,259) | |
Sale of non-current assets held for sale | 3,000 | 0 | |
Cash flow generated/(used) by investment activities | (379,618) | (767,124) | |
FINANCING ACTIVITIES | |||
Opening of loans | 347,611 | 1,356,970 | |
Repayment of loans | (280,234) | (803,543) | |
Payment of lease liabilities | (10,172) | (10,225) | |
Change in short-term debts to banks and other lenders | 12,452 | 67,296 | |
Dividends paid | (245,958) | (230,602) | |
Purchase of treasury shares | (22,710) | (52,267) | |
Sale of treasury shares | 30,097 | 13,648 | |
Cash flow generated/(used) by financing activities | (168,914) | 341,277 | |
Change in cash and cash equivalents | (63,213) | 35,844 | |
Opening cash and cash equivalents | 284,734 | 244,578 |
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Currency translation effect | 291 | 4,312 |
Closing cash and cash equivalents | 221,812 | 284,734 |
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Recordati Industria Chimica e Farmaceutica S.p.A. published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 11:29:01 UTC.