Press release

Medios AG starts successfully into the 2023 financial year
 

Start of the 2023 financial year with new revenue record in the first quarter

• Significant expansion of compounding capacities and extension of sales network
• Management strengthened with international expertise
• Outlook for 2023 confirmed: Sustainable growth in revenue and earnings expected

Berlin, 11 May 2023 – Medios AG ("Medios"), the leading provider of Specialty Pharma Solutions in Germany, confirms its forecast for the 2023 financial year after a successful first quarter of 2023 with new record revenue; EBITDA pre¹ is only slightly below the record level from the third quarter of 2022. Revenue in the period from January to March 2023 increased by 9.7% to €431.2 million (previous year: €393.0 million) compared to the same period of the previous year – with revenue growth in both operating segments. EBITDA pre¹ increased by 5.8% to €15.0 million (previous year: €14.1 million). This almost compensated for the negative effects of the regulatory change to the so-called auxiliary tax that came into force in September 2022. Consequently, the EBITDA pre¹ margin in the first quarter of 2023 was at the level of the prior-year period at 3.5%. Compared with the previous quarter, EBITDA pre¹ increased significantly by 35.1% (Q4 2022: €11.1 million).

In addition to continued organic growth, the positive business development in the first quarter of 2023 is also attributable to the acquisition of Blisterzentrum Baden-Württemberg GmbH ("bbw"), which was successfully completed in January 2023. The transaction also includes an extensive cooperation agreement to take over the manufacturing volumes of Apotheken für Spezialversorgungen OHG ("AfS").

Revenue and earnings growth in both operating segments

In the first quarter of 2023, the Pharmaceutical Supply segment achieved an increase in revenue of 8.5% or €28.9 million to €368.1 million (previous year: €339.2 million). Of this, €11.6 million was attributable to bbw. The segment's EBITDA pre¹ increased by 21.2% to €10.1 million (previous year: €8.4 million). Of this, bbw accounted for EBITDA pre¹ growth of €0.4 million.

The Patient-Specific Therapies segment generated revenue of €62.9 million in the first quarter of 2023, up 17.4% on the prior-year figure (€53.6 million). The segment's EBITDA pre¹ decreased by 4.9% to €6.6 million (previous year: €6.9 million). The main reason for the decline is the regulatory price reductions (auxiliary tax reductions) effective since September 2022 for some cytostatic compounds.

Matthias Gaertner, Chief Executive Officer (CEO) of Medios AG: “The start to the new financial year was very successful for Medios – despite a persistently challenging environment. We are implementing our adjusted growth strategy as planned. In addition to strengthening our core business in Germany, we also want to expand into other European countries and enter the field of personalized medicine. To this end, we have already taken initial measures and strengthened our Management with an internationally experienced new colleague who will be taking on the role of Head of International Business Development at Medios. For the further course of the 2023 financial year, we expect a continuation of the positive development.“

In the first quarter of 2023, Medios began offering highly specialized parenteral nutrition care for premature infants nationwide. Medios is thus preventing an impending supply bottleneck and strengthening its position as a reliable partner in the Specialty Pharma sector. As this involves inpatient care, Medios works as a manufacturing partner for hospital pharmacies and in this way diversifies its customer groups. Medios has received the necessary special approval from the relevant pharmaceutical authorities at two manufacturing sites, so that the highest level of supply security can be guaranteed.

With the help of the ESG software implemented in 2022, Medios has expanded the Group's database in the area of sustainability. Building on this foundation, the objectives of the ESG strategy are to be sharpened in the current financial year and concrete target values are to be defined, particularly in the areas of climate and environment.

Positive outlook for fiscal year 2023 confirmed

As a result of the high demand for Specialty Pharma drugs, Medios expects continued dynamic growth in the 2023 financial year. According to Medios, the further accelerating market consolidation will also make a positive contribution to this. According to Medios' assessment, this development is supported by regulatory requirements.

 For the 2023 financial year, Medios AG therefore expects consolidated revenue of €1.6 – 1.8 billion, which corresponds to an increase of up to 11.8% compared to the previous year. EBITDA pre1 is expected to be in the range of €56 – 63 million – a growth of up to 14.8% compared to the previous year.

As in the previous year, the special charges adjusted for the 2023 EBITDA pre¹ forecast include expenses for stock options and M&A activities as well as one-off performance-related payments for the acquisition of manufacturing volumes.

In the medium term, Medios is targeting consolidated revenues of over €2 billion and an EBITDA pre¹ margin in the mid-single-digit range.

Important events for Medios AG in the 2023 financial year

11 May:  SMID Mega Trend Days 2023, Kepler Cheuvreux – Paris

12 May:  TP ICAP Midcap Annual Conference – Paris

16 June:  Warburg Highlights – Hamburg

21 June:  Ordinary Annual General Meeting 2023 (AGM) – Berlin

14 August:  Half-Year Financial Report as of 30 June 2023

20 September: Berenberg and Goldman Sachs 12th German Corporate Conference – Munich

14 November: Quarterly Statement as of 30 September 2023

17 November: Warburg “Meet the Future” - Berlin

Medios AG's quarterly statement as of March 31, 2023 is available for download on the Investor Relations website.

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About Medios AG

Medios AG is the leading provider of Specialty Pharma Solutions in Germany. As a competence partner and expert, Medios covers all relevant aspects of the supply chain in this field: from pharmaceutical supply to the manufacture of patient-specific therapies including blistering. The focus is on optimal patient care via specialized pharmacies.

Medios AG is Germany's first listed Specialty Pharma company. The shares (ISIN: DE000A1MMCC8) are listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard).

www.medios.ag

Contact

Claudia Nickolaus
Head of Investor & Public Relations, ESG Communications
Medios AG
Heidestraße 9 | 10557 Berlin
T +49 30 232 566 800
[email protected]
www.medios.ag

Anna Höffken
Senior Consultant Investor & Public Relations
Kirchhoff Consult AG
Borselstraße 20 | 22765 Hamburg
T +49 40 609 186 34
[email protected]
www.kirchhoff.de
 

Disclaimer

This communication contains forward-looking statements that are subject to certain risks and uncertainties. Future results could differ materially from those currently anticipated as a result of various risk factors and uncertainties, including, but not limited to, changes in business, economic and competitive conditions, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing.