EUROAPI

Full-Year 2023 Outlook Revised Downwards

Regulatory News:

The Board of Directors of EUROAPI (Paris:EAPI) met today to review the most recent full-year 2023 results forecasts. As a result of this review, the company provides the following update².

The full-year 2023 outlook is revised downwards³

• Net Sales are now expected to grow between +3% and +5%, compared to +7% to +8% previously,
• Core EBITDA margin is now expected to stand between 9% to 11%, compared to 12.5% to 13.5% previously,
• CAPEX guidance remains unchanged between €120 million and €130 million.

The slowdown of full-year 2023 Net Sales growth compared to initial expectations is primarily driven by:

• For API Solutions: the price optimization strategy has recently been impaired by the changing market environment, with pricing pressure resulting from lower overall inflation and destocking programs from some of our customers.
• For the CDMO activities: Net Sales are expected to grow at a slower pace than anticipated due to weaker sales recognition than expected in Q4. This is notably driven by Biotech companies, with projects delayed, put on hold, or downsized due to funding issues.

The Core EBITDA margin decline is primarily due to

• Lower sales volumes leading to less favorable fixed cost absorption than initially anticipated,
• An unfavorable margin mix for the balance of the year (slowdown of the CDMO business).

Based on these elements, the company is launching a strategic review to adapt the company’s operating model. The 2023-2026 mid-term perspectives communicated in March 2023⁴ are suspended. The company intends to provide further information on the outcome of the strategic review on February 29^th 2024 at the latest (Full-Year 23 results publication).

Conference call today at 06:45 PM CET

EUROAPI management will hold a live audio webcast today at 06:45 PM CET (https://channel.royalcast.com/landingpage/euroapi-eng/20231009_1/). To participate in the Q&A session, please dial in the following numbers:

France : [phone]
UK : [phone]
USA : [phone]

About EUROAPI

EUROAPI is focused on reinventing active ingredient solutions to sustainably meet customers’ and patients’ needs around the world. We are a leading player in active pharmaceutical ingredients with approximately 200 products in our portfolio, offering a large span of technologies while developing innovative molecules through our Contract Development and Manufacturing Organization (CDMO) activities.