STADA sustains strong momentum with double-digit sales and profit growth in 2022

Deniza Cristian 06/03/2023 | 13:36

STADA succeeded in maintaining its strong growth momentum in 2022. Adjusted for special items and currency effects, group sales increased by 11% to €3.80 billion, while earnings before interest, tax, depreciation and amortization (EBITDA) improved by 17% to €875 million in 2022.

 

This performance maintained STADA’s trajectory of growing faster than the markets in which it operates and increasing its market penetration in its three strategic product segments: Consumer Healthcare, Generics and Specialty.

Since 2017, STADA has more than doubled its adjusted EBITDA while achieving an 11% compound annual growth rate (CAGR) in adjusted group sales. The Group has also diversified its product portfolio, such that Consumer Healthcare is now its largest business unit by sales, and prescription Specialty brands now account for one fifth of turnover.

“Despite the challenging geopolitical and economic environment, STADA was able in 2022 to sustain its strong growth journey of recent years,” commented STADA CEO Peter Goldschmidt. “Across our three strategic business units of Consumer Healthcare, Generics and Specialty, we have extended our offering to patients and healthcare professionals through launches and line extensions, while further improving our market position and ensuring a reliable supply of products.”

“STADA also continues to benefit from a broad geographic footprint, with all major markets having contributed to group growth in 2022. In line with our purpose of Caring for People’s Health as a Trusted Partner, STADA remains committed to enabling access to essential and affordable medicines in all the countries in which we operate.”

“This ability to keep expanding the range of solutions for patients and healthcare professionals around the world is a testament to the unique culture and dedication of our more than 13,000 employees worldwide,” Goldschmidt added. “This was confirmed by STADA once again being named as a Top Employer Europe, while our regular employee surveys demonstrate outstanding commitment and engagement among our colleagues, well above industry benchmarks.”

Despite geopolitical and macroeconomic turbulence that has disrupted global supply chains and increased inflationary pressures, STADA in 2022 was able to increase its production output to supply around 1.2 billion packs, across 25,000 individual presentations or stock-keeping units, in approximately 120 countries worldwide. Service levels sustained at above 95% were supported by improvements in quality and safety, as the group’s 13,000 employees worked to ensure patients and their caregivers had access to the treatments they needed.

Through detailed planning, careful management, implemented efficiencies and commercial agility, STADA was able to improve its gross margin in 2022 by 1.2 percentage points to 48.7%.

STADA continues to strengthen its supply-chain resilience, not least through an investment of more than €50 million in a hub in Turda, Romania, which the group is constructing with industry-leading technologies such as photovoltaic solar panels that support STADA’s sustainability strategy. With 20 production facilities located across Europe, Eurasia and Asia, complemented by a network of 16,700 trusted suppliers and partners around the world, the Group benefits from a diversified, sustainable supply chain.

STADA’s sustained progress on environmental, social and governance (ESG) topics was documented for the first time at a group level during 2022 with the publication of the first STADA Sustainability Report. Evidence of the group’s advances came towards the end of last year when an independent ESG assessment conducted by Sustainalytics ranked STADA among the top 10% of pharmaceutical companies globally.

Sustained growth across three strategic segments

With a 17% increase in adjusted sales to €1.62 billion, Consumer Healthcare became STADA’s largest business unit in 2022, accounting for 43% of group turnover. The strong performance, well ahead of market averages, came through a combination of organic growth and the successful integration of recent acquisitions. In particular, partnering with Sanofi Consumer Healthcare has added leading brands such as Allegra, Bisolvon, Dulcolax and Silomat to STADA’s offering in a wide range of European and Eurasian countries.

At an organic level, STADA during 2022 continued to strengthen its extensive roster of local and regional Consumer Healthcare brands through launches and line extensions that included Hoggar Melatonin spray and capsules as well as Eunova D3 Spray und Junior in Germany; Lunestil in several central and eastern European countries; Mitosyl Naturel and Synthol Oral in France; Mebucaïne Dolo in Switzerland; Kamistad Baby Gel in the Czech Republic und Kazakhstan; and Urilys in Belgium.

Through leading local brands such as Aqualor, Grippostad, Lemocin, Silomat and Snup, STADA benefited from strong demand for cough, cold and sore-throat remedies. The group also outperformed Europe’s OTC dermatology sector, improving its market position with most of its key products. Through brands such as Cetraben, Flexitol, Mitosyl, Multilind and Oilatum, STADA ranks second by value in Europe’s OTC dermatology market.

These additions helped STADA to outperform the market and further strengthen its position as a top-four OTC medicines provider by value in Europe.

With 6% Generics adjusted sales growth in 2022 to €1.44 billion – equating to 38% of total group sales – STADA was also able to outperform several of its key competitors. Recent launches such as sitagliptin, sitagliptin/metformin, pregabalin and lacosamide ensured that the company continued to cover all relevant losses of exclusivity in Europe and reinforced the company’s position as Europe’s fourth-largest supplier of generics medicines by value.

STADA’s Specialty segment kept pace with the overall group, as adjusted sales advanced by 11% to €741 million in 2022. Specialty accounted for 19% of total group sales.

Within the Specialty segment, the financial contribution from biosimilar alternatives to original reference biologic medicines accelerated as more candidates progressed from STADA’s well-stocked pipeline to commercialization. During 2022, STADA achieved a key milestone in its Specialty and biosimilars strategy by securing an EU marketing authorization for, and subsequently launching across 16 European countries, Hukyndra (adalimumab) – a high-concentration, citrate-free biosimilar alternative to Humira that is the first biosimilar commercialized through a strategic partnership with Alvotech. Furthermore, the company towards the end of 2022 gained EU-wide approval for Ximluci (ranibizumab), a biosimilar referencing the Lucentis blockbuster biologic for serious eye complaints, that STADA plans to launch during 2023 in collaboration with partner Xbrane.

Beyond biosimilars, STADA continues to introduce in more European countries the Lecigon pump combining three proven active ingredients for late-stage Parkinson’s disease. And during 2022, STADA took a pioneering step not only for the group, but also for the entire pharmaceutical industry, by introducing Kinpeygo, the first EU-approved treatment for a rare, chronic and debilitating kidney disease.

Sustainable basis for future growth

“Our expanding portfolio of attractive local brands in Consumer Healthcare, and our stronger commercial footprint in the growing Specialty sector, are complementing the extensive offering of Generics through which STADA has for many years enabled access to high-quality, affordable medicines,” summarized Goldschmidt.

“STADA’s differentiated portfolio across all major therapeutic categories, along with our broad geographic presence in Europe, Eurasia, Asia-Pacific and the Middle East and North Africa, ensures that the group is not dependent on any specific product or region. Having concluded 86 in-licensing deals during 2022, I am confident that STADA has the right pipeline, portfolio and team to sustain our growth momentum in 2023.”

For financial results as reported, consult the STADA Annual Report 2022.

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