DGAP-News: STADA Arzneimittel AG: STADA's business development in the first six months of 2018 as expected

STADA Group key figures

"In the first six months of 2018, STADA developed in line with our expectations. In addition to double-digit increase in our key earnings figures - including significant net income growth - we were able to considerably improve the margin of our Generics segment. We also pushed ahead with our strategic realignment, implementing steps such as acquiring the EMEA rights for Nizoral dandruff treatment shampoo and taking over distribution responsibility for our strongest-selling product APO-Go in Germany, with Scandinavia to follow shortly. As such, we remain on track to reach our targets for 2018," STADA CEO Dr. Claudio Albrecht strikes a positive balance.

Slight decrease in reported Group sales - increase in adjusted Group sales
Reported Group sales decreased by 1 percent in the first six months of 2018 to EUR1,137.5 million. Sales of STADA Vietnam J.V. Co. Ltd. are no longer included. Group sales adjusted for portfolio and currency effects increased by 5 percent to EUR1,171.6 million.

Increase in reported and adjusted EBITDA
Reported EBITDA increased by 18 percent in the reporting period to EUR260.6 million, while adjusted EBITDA rose by 10 percent to EUR261.7 million.

Significant increase in reported and adjusted net income
Reported net income grew by 83 percent in the first six months of the current financial year, rising to EUR165.3 million, while adjusted net income increased by 31 percent to EUR149.7 million.

Increase in cash flow from operating activities
Cash flow from operating activities increased to EUR95.0 million in the first six months of 2018
(1-6/2017: EUR89.5 million). Following the most recent investments, free cash flow totaled EUR-99.6 million (1-6/2017: EUR16.9 million). Free cash flow adjusted for payments for significant investments or acquisitions and proceeds from significant disposals increased to EUR61.6 million (1-6/2017: EUR43.5 million).

Improved equity ratio
The equity ratio as of June 30, 2018, improved to 34.3 percent (December 31, 2017: 31.4 percent). Net debt as of June 30, 2018, totaled EUR1,165.5 million, including a shareholders' loan (December 31, 2017: EUR1,054.7 million).

STADA key figures: Generics segment

Sales and earnings development of the Generics segment
In the first six months of 2018, reported sales of the Generics segment totaled
EUR672.4 million and were more or less on a par with the corresponding period of the previous year. The figure no longer includes generics sales of STADA Vietnam J.V. Co. Ltd. Sales adjusted for portfolio and currency effects increased by 4 percent to EUR684.7 million. Overall, the Generics segment accounted for 59.1 percent of Group sales in the reporting period (1-6/2017: 59.0 percent). Adjusted EBITDA increased by 22 percent to EUR183.6 million. The adjusted EBITDA margin was 27.3 percent (1-6/2017: 22.3 percent).
 

STADA key figures: Branded Products segment

Sales and earnings development of the Branded Products segment
In the first six months of 2018, reported sales of the Branded Products segment decreased by 1 percent to EUR465.1 million. The figure no longer includes branded product sales of STADA Vietnam J.V. Co. Ltd. Sales adjusted for portfolio and currency effects increased by 7 percent to EUR486.9 million. Overall, the Branded Products segment accounted for 40.9 percent of Group sales in the reporting period (1-6/2017: 41.0 percent). Adjusted EBITDA decreased by 1 percent to EUR120.0 million. The adjusted EBITDA margin was 25.8 percent (1-6/2017: 25.9 percent).
 

STADA reconciliation of special items in the second quarter of 2018

^{1 Due to the presentation in EUR million, there may be rounding differences in the tables.
2 Relates to additional depreciation/amortization and other valuation effects resulting from purchase price allocations and significant product acquisitions, taking financial year 2013 as basis.}
 

STADA reconciliation of special items in the first six months of 2018

^{1 Due to the presentation in EUR million, there may be rounding differences in the tables.
2 Relates to additional depreciation/amortization and other valuation effects resulting from purchase price allocations and significant product acquisitions, taking financial year 2013 as basis.}

About STADA Arzneimittel AG
STADA Arzneimittel AG is a publicly-listed company with headquarters in Bad Vilbel, Germany. The company focuses on a three-pillar strategy consisting of generics, non-prescription OTC products and specialty pharmaceuticals, biosimilars in particular. Worldwide, STADA is represented in about 30 countries with roughly 50 subsidiaries. Branded products such as Grippostad and Ladival are among the highest selling in their product categories in Germany. In financial year 2017, STADA achieved adjusted Group sales of EUR2,255.3 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR433.9 million and adjusted net income of EUR195.6 million. As of December 31, 2017, STADA employed 10,176 people worldwide.

Additional information for journalists:
STADA Arzneimittel AG / Media Relations / Stadastrasse 2-18 / 61118 Bad Vilbel - Germany /
Phone: +49 (0) 6101 603-165 / Fax: +49 (0) 6101 603-215 / E-Mail: press@stada.de
Or visit us on the Internet at www.stada.com/press

Additional information for capital market participants:
STADA Arzneimittel AG / Investor & Creditor Relations / Stadastrasse 2-18 / 61118 Bad Vilbel - Germany /
Phone: +49 (0) 6101 603-113 / Fax: +49 (0) 6101 603-215 / E-mail: ir@stada.de
Or visit us on the Internet at www.stada.com/investor-relations