Antibiotice Iasi maintained the growth trend of turnover and profitability in the first 9 months of 2023

Antibiotice SA (ATB symbol) submitted to the Bucharest Stock Exchange, on Wednesday, November 15, 2023, the report containing the economic-financial results related to the first 9 months of 2023.

The data in the report reflect sustainable growth of the company’s business, which is part of the trend provided by the multi-annual business plan “The Future Together”, for the period 2023-2030, which pursues objectives such as using the potential of production capacity, attracting new products and increasing the market share of products in the portfolio, doubling turnover and profitability.

The company’s achievements in the first 9 months of 2023 aligned with the business plan “The Future Together 2023 – 2030”:

• balanced increase in turnover in the internal and international market by 28% compared to the same period of 2022;
• achieving a net profit of LEI 76.7 million, compared to the value of LEI 29.5 million registered on 30.09.2022;
• turnover in the domestic market increasing by 32%, compared to the first 9 months of 2022;
• business in international markets increasing by 23.3% compared to the first 9 months of 2022;
• increasing the value of ATB’s share by over 100% from LEI 0.57 on January 1, 2023 to LEI 1.18 on September 30, 2023;
• investments of LEI 51.03 million for the development of the product portfolio, green energy production, modernization of production capacities, laboratories and logistics, digitization of processes;
• attracting non-reimbursable funds amounting to LEI 85 million through state aid and concluding a loan agreement with the European Investment Bank of LEI 123 million for a capacity for the production, packaging and storage of sterile products, solutions and topical products.

Consolidated financial results

• The turnover of the Antibiotice company obtained from the internal market and international markets in the first 9 months of 2023 registered the value of LEI 463.4 million, increasing by 28% compared to LEI 362.6 million, the level reached in the similar period of 2022.
• The net profit generated by Antibiotice reached the level of LEI 76.7 million, compared to the value related to the similar period of 2022 of LEI 29.5 million.

The financial balance indicators pursued in the first 9 months of 2023 are:

• Current liquidity (current assets/short-term bank debt) is 10.62, greater than 1.2
• EBITDA (operating profit + impairment expenses + amortization expenses) shows an upward trend of LEI 52 million in the first 9 months of 2022, at LEI 119.6 million in the same period of 2023

Total bank debt (amount of bank debt as an expression of the operating credit balance and the investment credit balance):

• Total bank debt/EBITDA is 0.65, less than 3.5
• Total bank debt/equity is 0.11, less than 1
• Degree of indebtedness (total debt/total asset) remained at 24.8%

32% increase in turnover in the internal market

In the first 9 months of this year, Antibiotice achieved a turnover on the Romanian market in the amount of LEI 288.67 million, increasing by 32% compared to the first 9 months of 2022. This increase was determined by optimizing marketing policies, attracting new products, repositioning medicines in the portfolio, as well as strengthening the therapeutic class for systemic use and dermatological preparations, cardiovascular system and digestive tract, where Antibiotice are positioned in the first places in the internal market. The company is a quantitative leader in the total pharmaceutical market for injections (56%), ointments (20.6%), suppositories and pessaries (35.7%).

The sale on market segments in the first 9 months of 2023, compared to the same period of 2022, is as follows:

• In the sales segment in hospitals (hospital), where Antibiotice is recognized as the main supplier of anti-infectious products, sales increased by 18.4%.
• In the national pharmacy chains segment, value sales increased by 13.6%, and in independent pharmacies and small chain stores, the company’s value sales increased by 19.1%.

During the analyzed period, the food supplements in the Nutriensa® range, which registered significant developments in sales, are the brands SimbiFlora, Lejer® and Imunofix®.

Business in international markets growing by 23.3%

Between January and September 2023, the net turnover on international markets was LEI 174.76 million, increasing by 23.3% compared to the same period of 2022. This result was obtained by exporting a number of 80 medicines, totaling a volume of approximately 68 million therapeutic units, increasing compared to previous years. Significant increases were recorded in territories such as: USA, Vietnam, UK, Moldova, Denmark, Hungary, the Netherlands, which generated 90% of the sales of the analyzed period. In these territories, Antibiotice is positioned in the top of producers offering complete portfolios of anti-infectious products administered in hospitals. Export recovery (over 55 countries) of biotechnologies derived from nourse streptomycins for pharmaceutical use (compacted nystatin, micronized nystatin and standard nystatin), determined in the first 9 months of this year a 14% increase in sales, compared to the first 9 months of the previous year.

The portfolio of evolving products, the premise of the company’s long-term development

In the first 9 months of 2023, the company’s portfolio was completed with 10 new products requested by the market:

• Cold & Flu Portfolio has been completed with 1 new product: RemiFLU® granules for oral solution in sachet, OTC product, a triple combination of paracetamol, chlorpheniramine maleate and ascorbic acid, indicated in the relief of the main symptoms of the diseases;
• Derm a+ portfolio has expanded by launching 4 new products: an OTC product (Zinba®, topical anti-infectious products intended to prevent and treat a wide range of bacterial skin infections) and 3 dermatocosmetic products (Tinero® AZ, the new dermatocosmetic line for relieving rosacea symptoms);
• Nutriensa® portfolio was expanded with 2 new products: Equilibra® Plus tablets, a dietary supplement that represents a complex association of organic magnesium and vitamin B6, which contributes to the recovery of the body’s energy level and to the normal functioning of the nervous system, and Lejer Anti-gas, a medical device indicated in the relief of gastrointestinal symptoms;
• The portfolio of sterile products for injection has been extended with 3 other anti-infectious products: Vancomycin Atb® 500 mg, Vancomycin Atb® 1 g powder of concentrate for solution for infusion and Cefazolin Atb® 1 g powder for solution for injection/infusion.

Sustainable development through strategic investment projects

In order to sustainably develop, the company made in the first 9 months of 2023 total investments amounting to LEI 51.03 million, compared to LEI 32.3 million made in the first 9 months of the previous year. One of the major investments that Antibiotice targets for the sustainable development of the company is the one dedicated to the project “Capacity for the production, packaging and storage of sterile products, solutions and topical products”, part of the business plan “The Future Together”. The manufacture of these new types of medicines will contribute to supporting the national health system as well as to increasing the company’s exports, with an impact on the increase in turnover in the 2030s.

For this project, whose total value is over LEI 200 million, Antibiotice obtained non-reimbursable funds in the amount of LEI 85 million through state aid from the Ministry of Finance and concluded a loan agreement, without request for guarantees, with the European Investment Bank, worth LEI 123 million. During the analyzed period, the first works related to this investment were started by starting the construction of a modern warehouse of finished products that has a storage capacity three times higher than that of the warehouse existing on the site, fully digitized. The new warehouse will be adapted to the estimated production in the perspective of the following years (2030).

Sustainable development to ensure the conservation of resources for future generations and a healthier environment is a key direction of the company’s sustainability strategy. In this regard, Antibiotice invested in the production of green energy from renewable sources obtaining non-reimbursable financing through PNRR funds in order to build photovoltaic parks both on the ground (2.5 MW), as well as on buildings (1.2 MW), which will provide 36.4% of the company’s own energy consumption, from energy produced 100% of renewable resources. Both projects will be completed this year.

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The persons interested in finding out more information, can consult the Management Report related to the first 9 months of 2023 on the website of the Bucharest Stock Exchange (www.bvb.ro), of the Financial Supervisory Authority ((www.asfromania.ro) or on the website of Antibiotice SA (www.antibiotice.ro), section “Investors > Financial information > Financial reporting”.