The Siegfried Group reports sales of CHF 283.0 million for the 2009 financial year, a 2.2% decline when compared to the previous year. While sales of active pharmaceutical ingredients (Siegfried Actives) rose by 15.3% to CHF 220.9 million, the Generics division sales fell by 36% to CHF 62.1 million compared to the previous year. The company generated earnings before interest, depreciation and amortization (EBITDA) before restructuring costs of CHF 25.3 million, or 8.9% of sales. Siegfried suffered a net loss of CHF - 35.3 million due to special write-offs on various reassessed balance sheet items. The Board of Directors proposes a capital increase to finance the rapid implementation of the growth strategy defined in the year under review.
The development of Siegfried's operating cash flow rose by 69.4% to CHF 45.5 million. The Siegfried Group's balance sheet has an equity financing ratio of 68.6%. Moreover, during the 2009 financial year, net debt decreased by CHF 7.9 million to CHF 63.3 million and net current assets declined by CHF 39 million to CHF 133 million. While this reduction had a positive effect on cash flow, it adversely affected the operating result.
Siegfried's Core Business with Higher Sales and Earnings
In its core business with active pharmaceutical ingredients, Siegfried reports a sales growth of 15.3% in 2009 when compared to the previous year. The company said the result is considered good by industry comparison. The Ebitda amounted to CHF 25.9 million, translating into an Ebitda margin of 11.7%. The customer base placing medium to large orders with Siegfried was expanded. A significant supply agreement was signed in Siegfried's business with controlled substances (including opiates) in the U.S. A second agreement was signed in the first weeks of the 2010 financial year.
In the year under review, the company said its generics business was once again influenced by drastic changes in the German market. Nevertheless, compared to the previous year, sales improved continuously in the course of 2009. In line with the parameters of the new strategy, projects initiated in the year under review are already based on a partnering concept.
