Euroapi (EAPI) H2 2024 earnings summary

Executive summary

• Net sales for 2024 were €911.9 million, down 10% year-over-year, mainly due to lower Sanofi volumes and Brindisi site suspension, partially offset by new client momentum and a major five-year CMO contract.

• FOCUS-27 plan advanced, targeting 70% of 2027 revenues from differentiated APIs, with significant organizational transformation and operational resilience.

• Sustainability initiatives progressed, including SBTi commitment and 100% renewable electricity for industrial sites.

• Free cash flow before financing improved to €15.0 million, driven by inventory reduction and better cash collection.

• Net cash position reached €25.2 million, a significant turnaround from €171.0 million net debt at end-2023.

Financial highlights

• Core EBITDA was €50.4 million (5.5% margin), down 45.8% from 2023, mainly due to unfavorable fixed cost absorption and exceptional items.

• Net income was a loss of €130.6 million, improved from a €189.7 million loss in 2023; basic EPS was €(1.38).

• Gross profit margin decreased to 15.6% from 16.2% year-over-year.

• CAPEX totaled €108 million, with 53% for growth and performance projects.

• Free cash flow before financing was €15.0 million, with inventories and receivables both reduced.

Outlook and guidance

• 2025 net sales expected to be steady or slightly decrease versus 2024, with growth in non-Sanofi clients offset by further Sanofi decline.

• Core EBITDA margin guidance for 2025 is 7–9% of net sales, with positive EBITDA expected.

• Free cash flow before financing to be supported by EBITDA growth, working capital improvements, and Sanofi’s capacity reservation payments.

• CAPEX for 2025 anticipated to be slightly lower than 2024.