Positive outlook for STADA’s business development in 2017

Stada’s Executive Board presented sound figures for financial year 2016 and a positive outlook for business development in 2017. Board’s chairman, Engelbert Coster Tjeenk Willink said that important foundations were already laid in 2016 on the road to significantly higher profitability.

However, he said that the company will further expand the transformation program that has been initiated and continue it at an accelerated pace.

The company announced its focus to be maintained on the two-pillar strategy consisting of the enduringly reliable generics business along with the attractive branded products business. The latter area in particular will be expanded in a targeted manner. Through the successful takeover by Bain Capital and Cinven, the support of two strong financial partners is now assured – partners who have already declared their future support for this strategic orientation, the company said on Wednesday.

Financial year 2016 targets slightly topped

STADA launched 665 products around the world in the previous financial year – smaller selected acquisitions also contributed to the successful financial year 2016. The adjusted net income increased by 7% to €177.3 million. The company’s CFO, Dr. Bernhard Düttmann, said that the pleasing fact was possibility to reduce net debt by nearly Euro 100 million. “The ratio of net debt to adjusted EBITDA thus improved to 2.8 and was even below the declared target of 3,” said Düttmann.

Board’s actions postponed

The company said that the approval of the actions of the Executive Board for financial year 2016 was postponed. The other agenda items were resolved in accordance with the administrative proposals. The proposal to increase the dividend by 2 cents to €0.72 for financial year 2016 was also approved. The submitted remuneration system for the Executive Board, which was again adjusted to new regulatory developments, was also approved by a large majority of the shareholders.

The Annual General Meeting also appointed auditing company PricewaterhouseCoopers GmbH as auditor of the consolidated financial statements for financial year 2017.

“Despite a very challenging environment, STADA has tremendous growth opportunities and efficiency potentials that we will leverage”, said Willink, looking optimistically into the future and adding that this will of course also mean changes: “Only when we operate with a greater degree of integration and become significantly more efficient will we be able to achieve sustainable success in an increasingly tough competitive environment.”