Euroapi SAS

PAR:EAPI

Sales: Euroapi reported first-half net sales of EUR 356 million, down 13.5% year on year, as portfolio exits, softer demand in some products, and the Haverhill divestment weighed on revenue.

Profitability: Core EBITDA was EUR 20.7 million, with a 5.8% margin, while reported EBITDA was negative EUR 43.1 million because of transformation and restructuring costs tied to FOCUS-27.

Outlook: Management left full-year sales guidance unchanged at down around 10% on a comparable basis, but lowered the core EBITDA margin outlook to around 6% at constant perimeter because of the stronger-than-expected Hungarian forint.

Transformation: FOCUS-27 continued to move ahead with site optimization, cost cuts, and the signed agreement to divest Brindisi, which management said is a key milestone in simplifying the company.

Demand mix: Management said part of the weakness in API solutions is structural, especially for commoditized small molecules, while some demand softness is temporary and linked to customer destocking after the post-COVID period.

CDMO: CDMO sales grew 2% in the half and management said it is seeing encouraging momentum, more RFPs, and early interest in using idle fermentation capacity at Elbeuf.

Liquidity: Euroapi ended the half with net debt of EUR 37.9 million, but management said it still has plenty of headroom under its EUR 451 million RCF and expects full-year cash flow to be in line with original assumptions.