Strong Market Performance Led Stada to Double-Digit Growth

Stada, within which the company Hemofarm operates, demonstrated its resilience in a challenging business environment marked by macroeconomic and geopolitical uncertainties and reported double-digit growth in sales and earnings in the first half of 2022. Despite inflationary pressures on goods and services, and interruption of the supply chain due partly to the conflict in Ukraine, Stada Group headquartered in Bad Vilbel, Germany, continues its growth journey.

Organic growth and offer of the expanded portfolio to patients and health professionals through acquisitions and partnerships enabled Stada to increase the adjusted sale of the Group by 15% to EUR 1.768 billion in the first half of 2022. Adjusted for the currency fluctuations and special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 23% to 386.5 million euros.

Stada benefited from extensive market growth in all three strategic product segments: consumer healthcare, generics and specialties.

‘I am especially proud’, emphasizes the CEO of Stada Peter Goldsmidt, ‘how roughly 13,000 colleagues worldwide continue to grow through entrepreneurship, with agility and integrity and as One STADA. Very high levels of engagement recently confirmed through a global employee survey are leading to many new initiatives in the changing healthcare environment.‘

‘The focus on managing a complex portfolio consisting of over 25,000 stock keeping units (SKUs) provided through a strengthened and resilient supply chain network has enabled Stada to consistently maintain a high level of service and to be able to meet demand, thereby outperforming the market average‘, Goldschmidt pointed out. ‘I would like to take this opportunity to thank our more than 500 partners around the world who support us in further building of our supply chain network and making it even more resilient to crises,‘ added Peter Goldschmidt.

‘We have been able in many countries to increase our market share in consumer healthcare products and generics, as we continue to improve our portfolio and pipeline.‘

Sale of consumer healthcare products increased by 25%

Acquisitions and partnerships leveraging on Stada's extensive marketing and sales platform, together with internal product expansion through launches and line extensions, increased the adjusted sales in Stada's Consumer Healthcare segment in the first six months of 2022 by 25% to €729.2 million. Consumer healthcare products accounted for 41% of Stada Group sales in the first half of the year.

Sales of consumer healthcare products benefited as Stada successfully integrated its acquisition of Sanofi's 16 established local and regional brands of consumer healthcare products in predominantly European countries in mid-2021. Also, as of November 2021, Stada has been distributing Sanofi's portfolio of consumer healthcare products in 20 countries across Europe.

The generic segment is growing across the board

Ensuring availability of medicines to patients immediately after patent and exclusivity expiration or cancellation helped Stada increase adjusted sales in the generic segment by 6% to €697.1 million in the first six months of 2022.

Growth in the generics segment, which accounted for 39% of Stada Group sales in the first half of the year, was across the board, driven by key Western European countries, helping Stada maintain its leadership position among the top five companies in this segment across Europe.

Adjusted sales of Stada's growing list of pharmaceutical specialties increased by 12% to EUR 341.8 million on an adjusted basis in the first half of 2022, accounting for one fifth of Group sales.

Basis for further investments

Group EBITDA increased by 36% to EUR 450.2 million based on sales growth of 17% to EUR 1,768.1 million. Stada also maintained discipline related to operating costs while continuing to invest and support marketing and sales. A 71% increase in operating cash flow provided a good financial basis for further investments.

To support its portfolio, which is increasingly expanding through internal and external development, Stada announced a €50 million worth project earlier this year to build a supply chain centre in Turda, Romania. This site, which will have an initial capacity to deliver 100 million packages per year, is expected to create additional 375 jobs.

Stada's emphasis on commitment to ensuring sustainable employment, medicine supply and economic investments – as demonstrated by the Group's participation in the UN Global Compact – will be detailed in the near future in the first Sustainable Development Report for the entire Stada Group. ‘Sustainability is a natural thing for us at Stada. For us, taking care of people's health includes providing reliable solutions for our patients and partners, as well as supporting public authorities in building sustainable health systems‘, emphasized the Executive Director of Technical Operations (CTO) Miguel Pagan.

About STADA Arzneimittel AG

STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. The company focuses on a three-pillar strategy consisting of generics, specialty pharma and consumer healthcare products. Worldwide, STADA Arzneimittel AG sells its products in approximately 120 countries. In financial year 2021, STADA achieved group sales of EUR 3,249.5 million and reported earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 776.5 million. As of 31 December 2021, STADA employed 12,520 people worldwide.

Additional information for journalists:
STADA Arzneimittel AG - Media Relations
Stadastrasse 2-18
61118 Bad Vilbel - Germany
Phone: +49 (0) 6101 603-165
Fax: +49 (0) 6101 603-215
E-Mail: press@stada.de
Or visit us on the Internet at www.stada.com/press

Additional information for capital market participants:
STADA Arzneimittel AG - Investor & Creditor Relations
Stadastrasse 2-18
61118 Bad Vilbel – Germany
Phone: +49 (0) 6101 603-4689
Fax: +49 (0) 6101 603-215
E-mail: ir@stada.de
Or visit us on the Internet at www.stada.com/investor-relations