Results note: First quarter 2016

A decrease in antibiotic consumption and a poor pre-sales campaign of weight control in france, together with higher operating investments, main causes of a weak start of the year.

  • An extraordinary first quarter of 2015 generated 45% of the annual EBITDA between the months of January and March, distorting the comparison with the first quarter of 2016.
  • The first months of 2016 showed a decrease in the antibiotic consumption due to a mild winter, a fact which slowed down the growth of the category of own antibiotics and injectable products (+5.4%) and affected the manufacture of these same products for third parties (RJF CDMO, -9.6%). A recovery trend was already evident in April.
  • Products from therapeutic specialization in dermatology, respiratory and gynecology grew 10.5% in the first three months of the year.
  • The slowdown in the French market of nutritional supplements for weight control resulted in a weak pre-sales campaign of this category and in an increased investment in marketing to support the diversification of the product portfolio of Forte Pharma.
  • In this context, Reig Jofre closed the first quarter of 2016 with sales of 42.41 M€ (-1.4%), EBITDA of 4.11 M€ (-46.4%) and net profit of 1.97 M€ (-62.6%).
  • Ongoing industrial and commercial projects are having a good evolution and the company is confident of reversing in the coming months the trend of the beginning of the year.

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