France's EuroAPI H1 net sales fall on product discontinuations
France's EuroAPI H1 net sales fall on product discontinuations
Overview
France API maker's H1 net sales fell 13.5% yr/yr, driven by product discontinuations
Core EBITDA margin dropped to 5.8% from 9.6% as cost savings offset by lower activity
Company agreed to sell Brindisi site to Huvepharma as part of transformation plan
Outlook
EuroAPI expects FY 2026 net sales to be in line with initial outlook
Company now sees FY 2026 Core EBITDA margin at around 6% due to FX impact
EuroAPI expects FY 2026 CAPEX to be about 8% of net sales
Result Drivers
PRODUCT DISCONTINUATIONS - Co said planned discontinuation of APIs as part of portfolio optimization negatively impacted sales by €13 mln
LOWER SALES TO SANOFI AND OTHER CLIENTS - Co attributed revenue decline to reduced API Solutions sales to Sanofi (down 36.2%) and other clients (down 11.0%), notably due to lower corticosteroids and complex small molecules sales
COST SAVINGS OFFSET BY LOWER ACTIVITY - Co said lower personnel expenses and external cost savings were more than offset by impact of lower manufacturing activity on industrial performance
Company press release: ID:nGNE6PcFD4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales |
| EUR 356.50 mln |
|
H1 Net Loss |
| EUR 141.50 mln |
|
H1 Adjusted EBITDA |
| EUR 20.70 mln |
|
H1 Gross Margin |
| 15.70% |
|
H1 EBITDA |
| -EUR 43.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for Euroapi SA is €1.60, about 29% above its July 28 closing price of €1.24
Reuters Recommended Reads
July 28 - Germany's Medios cuts 2026 EBITDA outlook on pharma supply price pressure
July 29 - Teva Pharm profit misses estimates, seeks US tariff details
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)