Siegfried’s revenues up on APIs and new plants, earnings down on costs

By Gareth Macdonald contact

- Last updated on GMT

iStock/Golden_Brown
iStock/Golden_Brown

Related tags: Revenue

Siegfried saw higher sales in 2016 thanks to the API business it bought from BASF and opening of new plant in China, but profits fell on integration costs and higher taxes.

The Swiss active pharmaceutical ingredient (API) and drug supplier generated revenue of CHF717.7m ($711m) in 2016, up 49.3% year-on-year.

Siegfried attributed the gains in part to the API business and sites it bought from BASF in 2015​, explaining the assets are now fully integrated into its manufacturing setup.

Spokesperson Marianne Späne told us growth of Siegfried's CMO business has been driven by upscaling intended to support the launch of customer products and implementation of new projects. 

The firm also said its intermediates plant in Nantong, China – which was approved by Government authorities last summer​ – and the new facility at its headquarters in Zofingen, Switzerland, had both contributed to the revenue growth.

Costs associated with the facilities and the integration of the former BASF business impacted earnings.

Net profit for the 12 months ended December 31, 2016 was CHF27.9m, down from CHF39.1m in 2015.

R&D investment

Siegfried also announced it will expand its research and development capacity this year, citing customer demand.

The firm is adding about 40 new laboratory workstations at its site in Zofingen and is due to begin building a logistics facility at the plant this year.

Outlook

Siegfried predicted high single-digit sales growth in 2017. The firm also suggested that earnings will improve as a result of “identified synergies,” but did not provide details.

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