European peer Celesio reiterates guidance of flattish EBITDA for 2012
14 May 2012
FACTS: Celesio's Q1 results show EBITDA up 5.1% year-on-year.
ANALYSIS: At group level, this 5.1% EBITDA increase to €139.9m was achieved as revenues rose by 2.5% to €5.6bn.
By division, Celesio's pharmacy business (Patient and Consumer Solutions) was the driver of the Q1 growth. EBITDA increased by 27.3% as its UK business stabilised and the impact of cost rationalisation measures began to materialise.
The wholesale division (known as Pharmacy Solutions) recorded a 5.2% decline in EBITDA. This was largely due to strong competition and regulatory intervention in France.
The headline figures were released early last week when the group disclosed it had incurred a Q1 impairment charge of €45m on its CSO business, Pharmexx.
For the full year, Celesio has reiterated its guidance that 2012 EBITDA will at least reach the level of 2011.
DAVY VIEW: In its statement, Celesio notes that the sale process is underway for its Movianto and Pharmexx businesses. UDG may be interested in some or all of these assets.