Meda AB (publ) – Year-end report, January - December 2012
Full year 2012
- Group net sales reached SEK 12,991 million (12,856). At fixed exchange rates, sales increased 3%.
- EBITDA amounted to SEK 3,935 million (4,683), corresponding to a 30.3% margin (36.4).
- Operating profit amounted to SEK 1,791 million (2,644).
- Profit after tax totaled SEK 1,180 million (1,608). Excluding non-recurring effects, profit after tax totaled SEK 1,001[1]million (1,480[2]).
- Earnings per share reached SEK 4.00 (5.35). Excluding non-recurring effects, earnings per share totaled SEK 3.41[1] (4.93[2]).
- Cash earnings per share reached SEK 8.84 (9.07).
- Proposed dividend per share: SEK 2.25 (2.25).
Fourth quarter
- Group net sales decreased to SEK 3,195 million (3,456). At fixed exchange rates, sales decreased by 5%.
- EBITDA amounted to SEK 892 million (1,190), corresponding to a 27.9% margin (34.4).
- Operating profit amounted to SEK 349 million (658).
- Profit after tax totaled SEK 357 million (510). Excluding non-recurring effects, profit after tax totaled SEK 178[1]million (382[2]).
- Earnings per share reached SEK 1.21 (1.69). Excluding non-recurring effects, earnings per share totaled SEK 0.62[1] (1.28[2]).
- Cash earnings per share reached SEK 2.66 (1.94).
[1] Excluding a positive non-recurring effect of SEK 179 million in Q4 2012 due to a reduction in the Swedish corporate tax rate.
[2] Excluding a positive non-recurring effect of SEK 128 million in Q4 2011 that refers to utilization of a non-capitalized loss carry-forward in the German operations.
CEO STATEMENT
The 2012 fiscal year can be summarized as a year when Meda fully concentrated on continued growth within the boundaries of its business plan. We took carefully planned initiatives in new products and made investments into prioritized growth markets, and combined these with acquisitions of interesting product opportunities. Despite significantly higher investments in marketing in 2012, we have successfully maintained a free cash flow level equivalent to 2011 of SEK 2.7 billion. This represents free cash flow per share of SEK 8.84 (9.07).
The Dymista launch began in the US in the second half of 2012. We have received very positive feedback from prescribers and patients alike. It is still too early to draw any definite conclusions, but I am convinced that we are on the right track and that Dymista presents a unique prospect for the company. Dymista also received approval in Europe and we expect to begin introducing the product to specialists in specific large European markets during Q2 of 2013.
In 2012, we have also significantly expanded Meda’s portfolio with additional interesting product launches. A handful of products have received new product approvals in Europe, such as Zyclara, Astepro, Onsolis and Edluar. In addition, we finalized several product acquisitions in the US. Meanwhile, we continue to use the company’s global product potential in the OTC area to the best of their advantage, either alone or through partnerships with other pharmaceutical companies. OTC products display healthy growth figures and now comprise about 25 percent of Meda’s total revenue. Another positive effect from this strategic direction is the continued decrease of Meda’s dependency on subsidized drugs.
Efforts on prioritized growth markets are also continuing, which has led to a significant expansion in Meda’s marketing organization. The marketing organizations in Meda’s growth markets currently employ about 700 people, an expansion of 300 employees since the beginning of 2012. Meda’s combined sales in all of growth markets comprises some 15 percent of the company’s total turnover and are displaying robust growth. Russia, the Middle East and Turkey currently make up Meda’s largest growth regions.
The future
The pharmaceutical industry is faced with large challenges but Meda is part of segments that will have growth. In a world that is striving after lower pharmaceutical costs on several levels, production costs will become more important. Meda has a good foundation of internal and external production, but we will gradually search for cost effective solutions in production. Meda's strong cash flow allows us to continue to act to acquire interesting products and invest in prioritized markets.
Anders Lönner
Group President and CEO
For more information, contact:
Anders Larnholt, Phone: +46 8-630 19 62
VP Corporate Development and Investor Relations +46 709-458 878
Paula Treutiger, Phone: +46 8-630 20 82
Investor Relations +46 733-666 599
The company’s auditors did not review this year-end report.
FORWARD-LOOKING STATEMENTS
This report is not an offer to sell or a solicitation to buy shares in Meda. This report also contains certain forward-looking statements with respect to certain future events and Meda’s potential financial performance. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and may sometimes include words such as “may”, “will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”, “forecast”, “believe”, or other words of similar meaning. These forward-looking statements reflect the current expectations on future events of the management at the time such statements are made, but are made subject to a number of risks and uncertainties. In the event such risks or uncertainties materialize, Meda’s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Meda’s ability to secure new products for commercialization and/or development, and other risks and uncertainties detailed from time to time in Meda AB’s interim or annual reports, prospectuses, or press releases. Listeners and readers are cautioned that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Meda does not intend or undertake to update any such forward-looking statements.
