Bachem results reflect a successful 2014
Company reports renewed sales growth and higher profits, with further sales and profit growth expected
Bachem Group, a technology leader in the field of peptide chemistry, performed well in fiscal year 2014. The group generated sales of CHF183.9m and, thanks to targeted cost-savings and further efficiency gains, its operating profit (EBIT) increased by 21.8% to CHF35.9m. Net income rose by 23.1% to CHF29.1m.
In 2014, Bachem pressed ahead with the systematic focus on its core peptides business. Sales of research ingredients declined by 6.9% owing to the absence of the divested immunology product line sales. Sales in the remaining core business lines showed a slight increase of 1.3%. The catalogue business struggled with an unfavourable USD/CHF exchange rate during the first nine months of the year, but Bachem still managed to grow its sales, especially in the highly competitive custom synthesis business. Initial trends after the modernisation of the online shop are clearly positive in the catalogue business.
Sales of patented substances (NCEs), an important indicator of future business developments, were about 16% higher, and sales of established generic active pharmaceutical ingredients rose by 8.7% (CHF6.6m).
After a slow first half, especially in the US, sales were far better than expected in the second half, particularly in Europe. Sales of both peptide and non-peptide generics rose significantly above prior-year levels. From a regional perspective, there was a shift in the sales mix towards Europe, where Bachem generated 66.5% of its total sales (2013: 61.8%).
Bachem is working steadfastly to further strengthen its leadership position in the peptides market. Besides organic growth, management is examining additional opportunities in the form of selective alliances and takeovers that would strengthen its market position.