Salute e Benessere
First-half 2025 results
Press Release
Paris, 29th July 2025
7% to 9% 2025 Core EBITDA margin guidance reaffirmed, with ambition to be in the upper part of the range, supported by thorough execution of the FOCUS-27 plan, and despite more challenging topline
€412.1 million Net Sales (- 8.2% year-on-year)
Challenging year-on-year comparison, primarily due to a €21 million one off in H1 2024, excluding this exceptional impact, sales would have declined by 4%
EBITDA at €5.0 million compared to €(1.4) million in H1 2024
Core EBITDA at €39.5 million (9.6% margin) compared to €47.6 million in H1 2024 (10.6% margin)
Tangible decrease in OPEX, reflecting effective cost control measures
€(28.5) million Net Income compared to €(34.8) million in H1 2024
€ 1.1 million Net Cash Position at the end of June 2025
Thorough execution of focus-27 plan
Agreement signed with the French government to grant EUROAPI up to €140 million in public aid to support the investments related to the IPCEI Med4Cure project
Full year 2025 Core Ebitda margin objective of 7% to 9% reaffirmed, aiming for the upper part of the range – Full Year Net Sales now expected to decline low single digit
“The first half of 2025 highlights our ability to stay on course in a challenging environment, thanks to enhanced efficiency and financial discipline, said David Seignolle, Chief Executive Officer of EUROAPI. We are delivering on our Focus-27 roadmap, with Haverhill divestment completed and the discontinuation process of non-differentiated APIs progressing as planned. Buoyed by the engagement and support of our key stakeholders and colleagues, we enter the second half of the year with confidence and determination to continue our commercial transformation and execute our Focus-27 plan.”
H1-2025 Key figures
2025 outlook adjusted
H1-2025 Net Sales
EUROAPI H1-2025 Net Sales reached €412.1 million, -8.2% versus H1 2024 as reported and - 7.6% at Constant Exchange Rates.
Net sales per type of activity
API Solutions
API Solutions' net sales decreased by 9.8% to €299.7 million.
CDMO
CDMO sales decreased by 3.4% to €112.4 million.
Net Sales per type of molecule
The decrease in Large molecules was driven by an unfavorable comparison base as H1 2024 included €21 million one-off impact from Buserelin stock clearance. The performance of Highly potent molecules was impacted by a phasing impact, and the pause, following completion, of two early-stage CDMO projects. While H1 2024 had been impacted by the suspension of production at Brindisi, H1 2025 sales of Biochemistry molecules derived from fermentation benefited from Pristinamycin volumes to Sanofi, partially offset by lower Vitamin B12 sales.
Financial performance
Gross profit was €76.6 million, down from €98.0 million in H1 2024. Gross profit margin stood at 18.6% compared to 21.8% in H1 2024, which reflected notably the one-off impact of Buserelin’s stock clearance.
Core EBITDA amounted to €39.5 million, compared to €47.6 million in H1 2024. The Core EBITDA margin was 9.6%, down from 10.6% in H1 2024. The decrease in OPEX reflects lower personnel costs, and substantial savings in external expenditures, driven by strengthened financial discipline and effective cost control measures.
EBITDA was €5.0 million compared to €(1.4) million in H1 2024 . Non-recurring costs totaled 34.6 million, comprising €39.3 million in exceptional items broken down as follows:
Operating Income was €(27.8) million versus €(33.4) million in H1 2024. Financial income was €(2.3) million, compared with €(8.1) million in H1 2024, reflecting a decrease in financial expenses following the refinancing of the company in H2 2024. Income before tax stood at €(30.1) million, and net income was €(28.5) million in H1 2025.
Net Debt Position and Cash Flow
Net Cash position was €1.1 million compared with a €25.2 million at the end of December 2024. While Operating Working Capital continued to be tightly managed, the increase in Inventories was notably driven by the seasonality of the production cycle. Months on Hand stood at 7.8 compared to 8.5 in H1 2024. The decrease in receivables is notably driven by the launch of a factoring program to improve liquidity, and secure cash inflows. €14.3 million were factored at the end of June 2025. DSO (which excludes the impact of the factoring) was 43, flat versus H1 2024, reflecting continued focus on Cash Collection.
H1 2025 Other Current Assets and Liabilities include the €18 million paid by Sanofi to secure available capacity for five selected products as part of the financing of FOCUS-27, and various operating elements. H1 2024 Other Current Assets and Liabilities included a €27 million variation in VAT tax reimbursement.
Capex reached €(37.8) million (9.2% of Net Sales), of which 60% were dedicated to growth projects. Full Year 2025 CAPEX are expected to range between €80 and €90 million, in line with FOCUS-27 target.
Free Cash Flow before financing activities was €(20.0) million, compared to €10 million at the end of June 2024 . The decrease was driven by the negative impact of Other Current Assets and Liabilities in H1 2025.
Update on FOCUS-27 strategic plan
Important Project of Common European Interest (IPCEI)
The French Government and EUROAPI have signed, on 28 July 2025, the contractual agreement for the granting of up to €140 million in public aid to support the investments related to the IPCEI Med4Cure project. The aid will be granted, within the France 2030 framework, on the basis of actual expenses between 2025 and 2035. EUROAPI will bring together a collaborative ecosystem of start-ups, SMEs, and academic teams to carry out innovative and structuring projects.
Haverhill site sold to Particle Dynamics
In line with the footprint rationalization announced as part of FOCUS-27, the Haverhill site in the UK was sold to Particle Dynamics on 30 June 2025. The transaction was completed under financial terms reflecting the fair value of the shares sold , and had a limited cash impact on EUROAPI’s H1 2025 consolidated financial statements. The capital gain impacting H1 2025 EBITDA was €4.7 million euros.
Haverhill contributed €14 million in net sales and €3 million in Core EBITDA in H1 2025 consolidated results, compared to €25 million in net sales and €9 million in Core EBITDA in H1 2024, and €35 million net sales and €(1) million Core EBITDA in 2024.
Products discontinuation
The API discontinuation program is progressing well. The products scheduled for discontinuation represented approximately €35 million in H1 2025 sales, of which an estimated €10 million was attributed to stockpiling. Impact on Gross profit was neutral due to increased volumes linked to stockpiling ahead of discontinuation.
Glossary and definition of non-GAAP indicators
Net Sales at Constant Exchange Rate (CER)
H1 2025 sales are calculated at H1 2024 Exchange rates
On a comparable basis
At constant perimeter and constant exchange rates. Figures at constant perimeter exclude the impact of acquisitions and disposals that occurred during the current year or during the previous year, until the anniversary date of the transaction.
EBITDA and Core EBITDA
EBITDA corresponds to operating income (loss) restated for depreciation and amortization and net impairment of intangible assets and property, plant and equipment.
Core EBITDA thus corresponds to EBITDA restated for restructuring costs and similar items (excluding depreciation and write-downs), allocations net of reversals of unutilized provisions for environmental risks, and other items not representative of the Group’s current operating performance or related to the effects of acquisitions or disposals.
Cash Flow before Financing activities
Cash Flow before Financing activities corresponds to the sum of Cash Flow from Operating Activities and Cash Flow from Investing Activities as presented in the consolidated statement of Cash Flow.
Months on Hand (MOH)
Net Inventory value at the of the period divided by Net Sales
Cross Selling
Selling a different product to an existing client that is already buying one or several products from EUROAPI.
Early-stage and Late-stage projects
Early-stage: pre-clinical, phase 1, and phase 2
Late-stage: phase3, in validation, and commercial
Presentation of H1-2025 results
An analysts’ conference call will be held by EUROAPI’s management tomorrow (30 July 2025) at 8:30 a.m. CET via an audio webcast (live and replay), and the results presentation will be available on the corporate website EUROAPI 2025 Half year results
2025 Half-year report will be published on 31 July 2025.
Financial agenda (all dates to be confirmed)
About EUROAPI
EUROAPI is focused on reinventing active ingredient solutions to sustainably meet customers’ and patients’ needs around the world. We are a leading player in active pharmaceutical ingredients with approximately 200 products in our portfolio, offering a large span of technologies while developing innovative molecules through our Contract Development and Manufacturing Organization (CDMO) activities.
Taking action for health by enabling access to essential therapies inspires our 3,270 people every day. With strong research and development capabilities and five manufacturing sites, all located in Europe, EUROAPI ensures API manufacturing of the highest quality to supply customers in more than 80 countries. EUROAPI is listed on Euronext Paris; ISIN: FR0014008VX5; ticker: EAPI). Find out more at www.euroapi.com and follow us on LinkedIn.
Forward-Looking Statements
Certain information contained in this press release is forward looking and not historical data. These forward-looking statements are based on opinions, projections and current assumptions including, but not limited to, assumptions concerning the Group’s current and future strategy, financial and non-financial future results and the environment in which the Group operates, as well as events, operations, future services or product development and potential. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans” and similar expressions. Forward looking statements and information do not constitute guarantees of future performances, and are subject to known or unknown risks, uncertainties and other factors, a large number of which are difficult to predict and generally outside the control of the Group, which could cause actual results, performances or achievements, or the results of the sector or other events, to differ materially from those described or suggested by these forward-looking statements. These risks and uncertainties include those that are indicated and detailed in Chapter 3 “Risk factors” of the Universal Registration Document filed with the French Financial Markets Authority (Autorité des marchés financiers, AMF) on April 1, 2025. These forward-looking statements are given only as of the date of this press release and the Group expressly declines any obligation or commitment to publish updates or corrections of the forward-looking statements included in this press release in order to reflect any change affecting the forecasts or events, conditions or circumstances on which these forward-looking statements are based.
Appendix
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Statements of Cash Flow
Reconciliation of Consolidated Operating Income (EBIT) to restated Core EBITDA
In the first-half 2025, transformation programs and other costs include internal and external expenses, related to FOCUS-27 transformation plan, of which idle costs related to inventory reduction and temporary shutdown of production lines impact for €20.6 million. Idle costs are mainly affecting Frankfurt with the extended impact of the decision in 2024 to discontinue 9 APIs and Haverhill considering the company’s refocused commercial strategy and the divestment process that has been finalized in June 2025.
The €(4.7) million euros of “Other” reflects the gain of the disposal of Haverhill.
1 Compared to “slightly decreasing to steady”
2 See glossary page 7
3 This includes an adjustment in the allocation of sales between Sanofi and Other Clients following the change in Opella's majority shareholder. Since 01 May 2025, sales to Opella have been reported under the Other Clients segment (€7 million Opella sales in May and June 2025)
4 See the press release issued in May 2024
5 See appendix page 12
6 Under-activity triggered by the execution of FOCUS-27
7 Including EUROAPI UK net debt was reclassified to asset held for sale in the consolidated statement of financial position as of 31 Dec 2024
8 See detailed in Consolidated Cash Flow Statement page 11
9 Subject to potential additional effects related to identified items or subsequent accounting adjustments as defined by the SPA.
Attachment
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti