CHEPLAPHARM remains on growth track

EQS-News: Cheplapharm AG / Key word(s): 9 Month figures/Expansion
CHEPLAPHARM remains on growth track
29.11.2022 / 13:53 CET/CEST
The issuer is solely responsible for the content of this announcement.

• Double-digit revenue and earnings growth after nine months in 2022
• Transformation program launched to optimize organization
• Significant annual revenue growth planned until 2025

CHEPLAPHARM AG, a leading international platform for well-established branded medicines, remains on growth track. After achieving the highest revenue in the Company's history in financial year 2021 with €1.1bn, CHEPLAPHARM continued its revenue and earnings growth in the first nine months of financial year 2022.

Business development in the first nine months of 2022

CHEPLAPHARM increased revenue by 21% year-over-year to €957m in the first three quarters of 2022 (9M2021: €793m). EBITDA reached €569m in the reporting period, 18% higher than in the corresponding period of the previous year (9M2021: €484m).

Profitability remained at a very high level in the first nine months. The EBITDA margin reached 59% (9M2021: 61%), while the gross profit margin was 72% (9M2021: 77%). The reason for the exceptionally high prior-year figures was a record number of acquisitions in the second half of 2020, which were integrated in the first half of 2021.

CHEPLAPHARM manages its business during the year primarily according to LTM figures (last twelve months). On an LTM basis, revenue grew by 32% to €1.25bn as of 30 September 2022, compared with the same reporting date in the previous year. Gross profit (LTM) increased by 22% to €888m and EBITDA (LTM) by 26% to €709m. Operating cash flow (LTM) increased by 43% to €502m.

In the first nine months of 2022, CHEPLAPHARM acquired new products worth approximately €565m. Currently, CHEPLAPHARM employs nearly 500 people and offers more than 140 branded medicines across a wide range of therapeutic areas.

Strategy 2025: Sustainable and profitable growth

CHEPLAPHARM is also pursuing ambitious goals for the future. The Company aims to strengthen and further expand its successful business model. The aim is to significantly increase annual revenue by 2025. The planned growth is further supported by the high scalability of CHEPLAPHARM's asset-light business. The main driver of the projected expansion is a continued dynamic development in the pharmaceutical market. CHEPLAPHARM expects that research-based pharmaceutical companies will sell a growing number of established drugs in the coming years, thus creating the basis for further acquisition-based growth.

As part of the "CP 2025" transformation program, the Management Board has launched numerous projects to align the organization specifically to the challenges of the future. These focus on initiatives to strengthen the market position, develop the workforce, and attract new employees, as well as optimize processes. The recent successful equity transaction is also an important part of CP 2025. In October 2022, two leading global investors invested growth capital totaling €550m in CHEPLAPHARM, strengthening and diversifying the Company's financial base. Sustainability, social responsibility, and governance are also at the heart of the transformation program. With CP 2025, CHEPLAPHARM aims to further expand its leading market position.

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EBITDA: Result of earnings before income taxes before amortization, depreciation and impairment and net finance expenses;

EBITDA margin: EBITDA divided by revenue;

Gross profit: revenue less cost of materials and change in inventories;

Gross profit margin: gross profit divided by revenue.

Investor Relations Contact

About CHEPLAPHARM

CHEPLAPHARM is a fast-growing pharmaceutical company in Europe, headquartered in Greifswald, Germany, offering branded and niche products in approximately 145 countries worldwide. The family-owned company specializes in selected active substances and indications and focuses on an international buy-and-build strategy.

Please refer to www.cheplapharm.com for additional information.

Press office:

CHEPLAPHARM ǀ Ziegelhof 24 ǀ 17489 Greifswald ǀ presse(at)cheplapharm.com

DISCLAIMER

The financial data presented in this press release has been taken or derived from the half-year financial statements of Cheplapharm AG as per September 30th, 2022. This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of CHEPLAPHARM AG. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this release or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements. Moreover, it should be noted that all forward-looking statements only speak as of the date of this release and that the Company assumes no obligation, except as required by law, to update any forward-looking statement or to conform any such statement to actual events or developments.

The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise.

Certain financial data included in the document consists of “non-IFRS financial measures”. These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included herein.

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