March 26th, 2008

Annual Accounts 2007


The 2007 net results of €207 million compared with €106 million in 2006 is seen as a very satisfying net result above management expectations.

For the third consecutive year the Octapharma Group achieved record marks on turnover and profitability.

The Net turnover increased in 2007 to €752 million versus €547 million in 2006, representing a 37.5% continued growth, which is based on both volume and improved pricing, and split on several countries and different market types. 

The gross profit increased from €223 million in 2006 to €339 million in 2007 realizing gross margins of 40.7 % and 45.1 % respectively, due to improved utilization of production capacity and better utilization of plasma, in addition to the positive impact of the improved pricing level.

The continuous cost awareness ensured that the operating costs remained at €102 million in 2007 against  €94 million in 2006, giving an impressive improvement of the operating income (earnings before interest and taxes) for 2007 of €237 million (representing a 31.6 % margin) compared with €127 million  (23.2 % margin) in 2006.

The continued positive results have ensured that there is a reasonable cash buffer of €204 million at year-end and equity of €550 million or 72.6 % of the balance sum.

It is worth mentioning that in the last two years Octapharma have had the benefit of extreme positive market developments, although as stressed by the Chairman, these outstanding results are mainly due to the good and well-targeted cooperation with and service towards our customers, drastically improved utilization of the production plants, better utilization of the plasma raw materials and the impressive and good performance of all employees.


Future outlook

The outlook for the year 2008 is positive with the turnover and net income to continue on its current high level.

The increased production volume of the Octapharma Group in the latest years has mainly been based on the existing facilities. Further increases in production capacity will need dedicated investments.

In the beginning of 2008, the decision has been taken for an investment program over a period of four years – both in fixed assets for the production and the administrative areas – as well as on the plasma sourcing and the Research and Development areas.

The program agreed upon involves investments in fixed assets of approximately 600 million Euros for the years 2008-2011. The main items of the investment program are as follows:

Market requirements oriented development of further capacities at all production plants.

Introduction of new production lines at all plants also covering new products developed.
Establishing further packaging and more flexible capacities for the group.
Increased investment in the plasma collection area to be added to the existing suppliers ensuring the basis for future growth.
Establishing adequate administration and laboratory facilities inclusive of an up-to-date IT platform.
Development of a cooperation platform to ensure focused and customer-orientated execution of meaningful marketing projects with stakeholders in the human protein sector.