Medios AG: achieves further growth in the first half of 2023 and expects strong third quarter

Press release

Medios AG achieves further growth in the first half of 2023 and expects strong third quarter

• Revenue growth of around 8% with increases in both operating business segments
• Strong third quarter of 2023 expected
• Forecast for 2023 confirmed: Sustained revenue and earnings growth

Berlin, August 14, 2023 – Medios AG ("Medios"), the leading provider of Specialty Pharma Solutions in Germany, has continued its growth course in the first half of 2023 and expects a strong third quarter. Accordingly, the company confirms its forecast for the full year. Revenue increased by 7.7% year-on-year to €853.5 million in the period from January to June 2023 (previous year: €792.2 million); both operating segments achieved revenue growth. EBITDA pre¹ increased by 1.9% to €29.0 million (previous year: €28.5 million) despite ongoing global uncertainties and regulatory adjustments. Consequently, the EBITDA pre¹ margin in the first half of 2023 of 3.4% was slightly below the level of the prior-year period (previous year: 3.6%).

Matthias Gaertner, CEO of Medios AG: "The first half of the year was again successful for Medios. We were able to continue implementing our growth strategy as planned and are ideally positioned for a strong second half of 2023. Here, the inventory management already initiated in the first half of the year will have a positive impact, particularly in the third quarter of 2023. Significant effects are already reflected in a strong business performance in July. We therefore remain on track to achieve our targets for the full year 2023 as well as our mid-term goals."

The revenue growth of the Medios Group in the first half of 2023 was attributable to continued organic growth in both operating segments. In addition, Blisterzentrum Baden-Württemberg GmbH ("bbw"), which has been included in the consolidated financial statements since January 2023, contributed to the revenue growth. This transaction also included an extensive cooperation agreement to take over the compounding volumes of Apotheken für Spezialversorgungen OHG ("AfS"), which Medios successfully started to integrate in the first half of 2023. The increase in EBITDA pre¹ was slowed by regulatory price changes (auxiliary tax; “Hilfstaxe”) since September 2022.

Due to expected inflation-related price adjustments in the area of pharmaceutical supply, Medios built-up inventories in the first half of 2023. Particularly this measure resulted in a cash flow from operating activities of € –75.2 million in the first half of 2023 (previous year: €9.9 million). For the second half of 2023, Medios expects corresponding positive effects on the cash flow due to the reduction of inventories.

In the first half of 2023, Medios was again active in strategic portfolio management: With the acquisition of bbw and the subsequent sale of Kölsche Blister GmbH, the Company is now concentrating its blister business at one location in southern Germany. In addition, Medios gained further compounding volumes through the agreement concluded with AfS.

Revenue growth in both operating segments

In the first half of 2023, the Pharmaceutical Supply segment achieved an increase in revenue of 7.6% to €734.1 million (previous year: € 682.5 million). The segment's EBITDA pre¹ increased by 13.9 % to €19.9 million (previous year: €17.5 million). Of this, €23.1 million in revenue and €1.0 million in EBITDA pre were attributable to bbw.

The Patient-Specific Therapies segment generated revenue of €118.9 million in the first half of 2023, up 8.6% on the prior-year figure (previous year: €109.5 million). EBITDA pre¹ of the segment decreased by 5.5% to €12.5 million (previous year: €13.2 million). The decline was mainly due to regulatory price reductions (auxiliary tax reductions; “Hilfstaxenabschläge”) for certain active ingredients.

On May 31, 2023, the Supervisory Board of Medios AG had resolved to extend the existing Executive Board contract of Falk Neukirch (Chief Financial Officer) until April 30, 2026. Falk Neukirch has been a member of the Executive Board since October 1, 2021 and is responsible for the Finance department.

Positive outlook for the 2023 financial year confirmed

Medios is very confident about its business development in the second half of the year and confirms its full year forecast for 2023 published on February 22, 2023. Accordingly, the Company expects consolidated revenue for the 2023 financial year to be in the range of €1.6 – 1.8 billion, representing a year-on-year increase of up to 11.8%. EBITDA pre¹ is expected to be in the range of €56 – 63 million – a growth rate of up to 14.8% year-on-year.

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

Important dates for Medios AG in 2023 financial year:

September 8:  Capital Markets Conference – Barcelona
September 12: Jefferies Fireside Chat Series “Back to School“ – virtual
September 20: Berenberg and Goldman Sachs 12th German Corporate Conference – Munich
November 14: Quarterly Statement (Q3 and 9M 2023)
November 17: Warburg “Meet the Future“ – Berlin
November 30: CIC Market Solutions Forum – Paris

The half-year financial report of Medios AG as of June 30, 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
c.nickolaus@medios.ag

www.medios.ag

Anna Höffken
Senior Consultant Investor & Public Relations
Kirchhoff Consult AG
Borselstraße 20 | 22765 Hamburg
T +49 40 609 186 34
anna.hoeffken@kirchhoff.de

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.