The Hessian pharmaceutical manufacturer is able to continue to grow, even if there are declines in cold remedies. Meanwhile, the planned exit of the financial investors is dragging on.
Good business with generic drugs and specialty pharmaceuticals is giving the drug manufacturer Stada a boost. In the first half of the year, sales rose by nine percent compared to the same period last year to just over two billion euros, as the company in Bad Vilbel announced. At the same time, operating profit (EBITDA), adjusted for currency and special effects, grew by 11 percent to 463.5 million euros. CEO Peter Goldschmidt spoke of growth above the market average. The bottom line is that Stada posted a profit of 186 million euros in the first half of the year, 15 percent more than a year earlier. The company is known for the cold remedy Grippostad and the sun lotion Ladival.
While sales of generic drugs and specialty pharmaceuticals increased by double digits, thanks in part to the introduction of new brands, the over-the-counter drug business saw a comparatively small increase of three percent. Stada cited a relatively mild cold and cough season as the reason, which led to a sharp drop in customer demand for many of its own brands.
The half-year figures are adjusted for the Russian business. Stada’s owners, the financial investors Bain Capital and Cinven, had decided to spin it off. The background to this are plans for a sale or IPO of Stada. The Russian business, which recently contributed more than 15 percent to sales, was considered a major hurdle. Despite the war in Ukraine, Stada did not withdraw from Russia and referred to the medical care provided to the people there.
Talks about a billion-dollar sale or IPO of Stada, with its approximately 11,500 employees, are taking longer than expected. Financial investors Bain Capital and Cinven are reportedly still in negotiations with interested parties such as investment firms and pharmaceutical companies. An IPO is being prepared in parallel.
Source: Stern
