Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FAES FARMA SA. We currently have 7 research reports from 1 professional analysts.
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FAES FARMA SA
FAES FARMA SA
Strong Q3; Bilastine launched in Japan
21 Nov 16
Faes Farma posted strong Q3 16 numbers. Total revenue was up 7% yoy in both Q3 16 and 9M 16 to €57.4m and €171.4m, respectively, mainly driven by Bilastine. Profitability remained strong – while Q3 16 EBIT increased 16% to €14.7m, net income was up 17% to €11.4m.
Bilastine and Spain shrug off sluggishness in Portugal and Animal nutrition
19 Aug 16
Faes Farma’s recent strong run continued in Q2 16. While total revenue was up c.4% yoy to €57m in Q2 16, it increased 7% in H1 16 to €114m, primarily driven by Bilastine and well supported by mature products. Profitability remained strong with EBIT showing an increase of c.15% to €11.3m in Q2 16 (margin up 182bp to 19.8%), led by an improving product mix. Furthermore, the lower effective tax rate resulted in net profit growth of 21% to €10.6m (margin improved 259bp to 18.6%).
Firing on all cylinders
26 Jul 16
After achieving the ‘best results in its history’ in FY 15 (although slightly short of our more robust growth expectations), Faes Farma reported another strong quarter in Q1 16, with revenue growth of c.11% yoy to c.€57m (c.8% growth in Q1 15), primarily driven by Bilastine and improved traction in the mature drug portfolio. However, following consistent double-digit growth in the past few quarters, animal nutrition had a relatively soft quarter – Ingaso Iberia and International grew 1.7% and 6.3% respectively, the former due to falling pork prices. Strong top-line growth, successful cost optimisation endeavours (despite a c.6% jump in the workforce between Q4 15 and Q1 16) as well as improving operating leverage trickled down to profitability, with EBIT and net profit growing 21% (to €11m, 180bp margin improvement to 19.5%) and 19% (to €8m, 100bp margin improvement to 14.2%), respectively. While management has chosen to maintain its full-year estimates, shared back in March 2016 (despite a Q1 16 run-rate ahead of guidance), we don’t rule out the likelihood of a guidance upgrade in the following quarters, should the outperformance continue.
Results marginally below expectations but Bilastine flourishing
29 Apr 16
Faes Farma’s Q4 15 and FY 15 results came in slightly below our estimates. Q4 15 net sales were up c.9% yoy to €50.8m, primarily driven by Bilastine, new products and the animal nutrition business. Higher other operating income due to milestone payments pushed the total revenue to €54.5m (+15%). While EBIT increased 22% to €7m, primarily on account of excellent cost containment and higher other operating income, net profit was up c.61% to €5.1m, helped by the repayment of debt (as a reminder, the company is now debt free). For the full year, net sales grew 7% to €204.7m vs. our expectation of €205.5m, while net income was up 20% to €30.4m, ahead of management guidance of €28-29m, but behind our estimate of €31.7m. For FY 16, the company guides for full-year revenue of €221-227m, EBIT of €43-45m and net income of €35-37m.
Margin improvement offsets weak top-line performance
28 Dec 15
Faes Farma’s Q3 results were a mixed bag. While sales came in below our expectations with flat yoy growth at €49m (+9% in H1; +6% in 9M), the shortfall was more than offset by improved profitability, with EBIT growing 20% to €13m (9M: +15%) and net profit increasing 19% to €10m (9M: +14%). For 9M, the top line was driven by Bilastine (+25%), antidiabetic licences (+21%), anti-inflammatory licences (+10%) and Ingaso Farm (+13.5%). Higher other operating income and lower depreciation & amortisation resulted in strong profitability. On the R&D side, the company has submitted regulatory application of paedriatic Bilastine in Europe. The quarter also marked the culmination of the company’s deleveraging activities with the company managing to bring down its bank debt to zero (from c.€75m in 2011). Following the results, the company announced its flexible dividend for 2016 – choice between a cash dividend of €0.075 and a scrip dividend in the ratio of 33:1.
Strong results driven by broad-based growth
03 Aug 15
Faes Farma continued its stellar form into the second quarter, with Q2 results coming slightly ahead of our otherwise optimistic expectations. Revenue increased c.10% to €53.7m (up c.9% in H1 to €105m), driven by growth across all business areas (including animal nutrition and the pharmaceutical business in both international and domestic markets). The domestic market performance continued to strengthen (7.8% growth vs just 0.1% for the sector) with new releases (apart from their flagship drug, Bilastine) posting double-digit growth. An evolving product mix (weighting towards high margin products) continued to push up profitability – EBITDA grew 11.5% to €12m, margin improved 170bp to 22.1%. The bottom-line benefited from a negligible gearing and low interest rates, posting c.22% yoy growth to €8.8m (margin up 240bps to 16%). While the current run rate is ahead of the company’s full-year estimates shared in March 2015 (both absolute as well as percentage growth), management has, surprisingly, decided to maintain its full-year guidance (possibly as the last quarter of the year is typically a slow one for the company). However, we see the likelihood of a guidance upgrade in the next quarter.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Exponential growth now in sight
07 Dec 16
The best things in life are worth waiting for, or at least that seems to be the case with Kromek, a pioneering radiation detection expert. Since listing on AIM at 51p back in October 2013, the company has not only been busily refining and field testing its next generation CZT (cadmium zinc telluride) technology, but importantly also securing a raft of new orders.
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.