RECORDATI

PRELIMINARY 2019 RESULTS CONFIRM CONTINUED GROWTH OF SALES AND PROFITS. SALES +9.6%. EBITDA +9.0%

RECORDATI: PRELIMINARY 2019 RESULTS CONFIRM CONTINUED GROWTH OF SALES AND PROFITS. SALES +9.6%. EBITDA +9.0%.

• Consolidated revenues € 1,481.8 million, +9.6%.
• EBITDA ⁽¹⁾ € 544.0 million, +9,0%.
• Operating income € 465.3 million, +5.2%.
• Net income € 368.8 million, +18.1%, includes an extraordinary tax benefit of € 27.0 million from the so-called “patent box” agreed with the Italian tax authorities in December 2019. Excluding this benefit net income would have been € 341.9 million, +9.4%.
• Net financial position ⁽²⁾:  net debt of € 902.7 million.
• Acquisition of global rights to Signifor, Signifor LAR (pasireotide) and Isturisa (osilodrostat) from Novartis completed on 23 October 2019. Isturisa approved in EU in January 2020 for Cushing’s syndrome.
• Objectives for 2020 target further growth of revenues and EBITDA⁽¹⁾ in line with the three year business plan.

Milan, 14 February 2020 – The Board of Directors of Recordati S.p.A. examined the preliminary consolidated results for 2019 and 2020 objectives.  The company’s definite consolidated annual financial reports will be submitted to the Board for approval on 18 March 2020.

Financial highlights

• Consolidated revenues in 2019 are € 1,481.8 million, up by 9.6% compared to the preceding year. International sales grow by 10.7%.
   
• EBITDA ⁽¹⁾, at 36.7% of sales, is € 544.0 million, an increase of 9.0% over 2018.
   
• Operating income, at 31.4% of sales, is € 465.3 million, an increase of 5.2% over the preceding year.
   
• Net income, at 24.9% of sales, is € 368.9 million, a significant increase of 18.1% over 2018, due to operating income growth and to the tax benefit from the so-called “patent box” agreed with the Italian tax authorities in December 2019. The total benefit amounts to € 35.3 million of which € 27 million from previous years and € 8.3 million related to 2019. Excluding benefit related to prior years net income would have been € 341.9 million, up 9.4% and 23.1% of sales.
   
• Net financial position ⁽²⁾ at 31 December 2019 records a net debt of € 902.7 million compared to net debt of € 588.4 million at 31 December 2018 reflecting dividends distributed for an amount of € 190.9 million and payments for an important acquisition, milestones and licenses for a total of € 425 million.

⁽¹⁾ Net income before net interest, provision for taxes, depreciation, amortization and write down of both property, plant and equipment and intangible assets.