YEAR-END REPORT 2017
THE FULL YEAR AND FOURTH QUARTER
· Net sales amounted to MSEK 657.6 (347.3), whereof the fourth quarter MSEK 238.7 (96.5), representing an increase of 89 percent for the year and 147 percent for the quarter.
· Adjusted EBITDA amounted to MSEK 169.3 (51.7), whereof the fourth quarter MSEK 41.8 (28.9) representing a margin of 25.7 percent (14.9) for the year and 17.5 percent (29.9) for the fourth quarter. The relatively lower margin in the fourth quarter was primarily due to the lower adjusted EBITDA margin at Weifa. Restructuring to achieve synergy effects on operating costs is proceeding according to plan.
· Cash flow from operations amounted to MSEK 33.5 (-36.1), whereof the fourth quarter MSEK -28.8 (9.6).
· Earnings per share were SEK 0,17 (1,34), whereof the third quarter SEK -0,42 (1,21).
· Cash and cash equivalents and other short-term investments at the end of the period amounted to MSEK 838.6 (121.3).
SIGNIFICANT EVENTS AFTER PERIOD END
· The rights issue initiated in December 2017 was completed in January 2018 and raised MSEK 794.3 million before transaction costs of MSEK 48.8. The issue was subscribed to 98.7 percent through subscription rights and the total issue was oversubscribed at 170.0 percent.
The bridge financing of the acquisition of Weifa of MSEK 700 was amortized in January 2018.
AUDIOCAST TODAY AT 11.00 CET
The report is presented at an audiocast today at 11.00 CET that can be followed through the website www.karopharma.se, or by telephone +46 8 505 564 74. Questions may be submitted over both web and telephone.
COMMENT ON OPERATIONS
We follow our plan and the fourth quarter yielded growth with increased profits.
Karo Pharma is in a position to develop strongly in the coming years. We have changed the company’s focus into becoming a leading Specialty Pharma company in the Nordic region. Through acquisitions and organic growth, we have achieved good profitability. Risks in early research have been reduced. The Pfizer Agreement/RoR Gamma has high priority without us needing to allocate resources to the project as our partner does this. The company should now be regarded as a Specialty Pharma company with a strong focus on pharmaceuticals, both prescription niche products and OTC products.
Questions are frequent on if it has not become more difficult to find acquisition projects. In truth, I have probably never experienced as many interesting and profitable acquisition candidates as right now.
But it requires us to have a serious and disciplined approach. The rights issue we carried out is aggressive in character. The acquisition of Weifa is based on a strong commercial basis. The two companies complement each other well when it comes to product portfolio and geography. The integration of Weifa into Karo Pharma has been completed and related restructuring charges have been taken. Extraordinary items affecting comparability amounted to MSEK 28 in the fourth quarter
Our plan is to further strengthen our position in the Nordic region, primarily in the field of OTC drugs. The next step also means that we step outside the Nordic region. In the next year we will be able to launch several products. We have strengthened our organization to meet the new challenges. Karo Pharma has all prerequisites to succeed.
FOR FURTHER INFORMATION, PLEASE CONTACT
Peter Blom, CEO, +46 (0) 70-655 56 98 or email@example.com
ABOUT KARO PHARMA
Karo Pharma is a specialty pharma company that develops and markets products to pharmacies and directly to healthcare providers. The share is listed on Nasdaq Stockholm in the Mid Cap segment.
The information in this report is such that Karo Pharma is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 22 February 2018 at 8.00 a.m. CET.