Bachem (BANB) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached CHF 240.3 million, up 0.2% year-over-year (+1.3% in local currencies), with EBITDA rising 5.6% to CHF 55.5 million and a margin of 23.1%.

• Net income increased 5.0% to CHF 36.2 million, with EPS up 4.2% to CHF 0.48 and operating cash flow at CHF 88.4 million, supported by customer prepayments.

• Significant investments in capacity expansion totaled CHF 143.9 million, focused on global sites and major projects like Building K and Sisslerfeld.

• Equity ratio remains strong at 75.9%-76%, with no external debt.

• Dividend of CHF 60.0 million paid in H1 2024.

Financial highlights

• EBITDA margin improved from 21.9% to 23.1% year-over-year, driven by cost efficiencies and favorable product mix.

• EBIT was CHF 35.4 million (+1.6% year-over-year), with a margin of 14.7%.

• Cash flow from operating activities was CHF 88.4 million, with net change in cash for H1 2024 at -CHF 95.0 million due to high capex and dividend payments.

• CapEx for H1 2024 was CHF 143.9 million, about 60% of sales, with expectations for full-year CapEx to be 20% higher than 2023.

• No loan liabilities as of June 30, 2024; cash and cash equivalents at CHF 62.7 million.

Outlook and guidance

• Full-year 2024 guidance unchanged: mid- to high-single-digit sales growth in local currencies and stable EBITDA margin.

• 2026 targets reaffirmed: sales above CHF 1.0 billion and EBITDA margin above 30%.

• Capacity expansion and operational excellence expected to drive growth, with Building K ramp-up in H1 2025 and Sisslerfeld planned for end of decade.