Burgdorf – Ypsomed (SIX: YPSN) continues its growth trend and achieved consolidated sales of CHF 548.5 million in the financial year 2023/24 (previous year: CHF 497.5 million). Adjusted for the sale of the diabetes specialist DiaExpert, this corresponds to growth of 24.5 % or CHF 108.0 million. The operating profit (EBIT) amounted to CHF 86.2 million (previous year: CHF 60.6 million). Adjusted for the previous year's contribution from DiaExpert, this results in EBIT growth of CHF 46.8 million or 119 %. On this basis, Ypsomed was able to more than double its EBIT for the second time in a row. Net profit increased by more than half and now amounts to CHF 78.4 million (previous year: CHF 51.3 million). In future, Ypsomed intends to focus on expanding its leading position in Delivery Systems. To this purpose, it is examining strategic options for the Diabetes Care business area.

Other important events:

• Sales growth of 39 % from deliveries of own pens and autoinjectors;
• A 69 % increase in commercial sales with the mylife YpsoPump system;
• The validation of our NetZero climate targets by the Science Based Targets initiative (SBTi);
• The addition of 330 new jobs, around half of them in Switzerland.

Strategic review of the Diabetes Care division

Ypsomed intends to strengthen its position in the Delivery Systems business area. In addition, the Diabetes Care business area is to develop into a focussed and global provider in diabetes care. To this purpose, a new Diabetes Care company will be founded under the umbrella of Ypsomed Holding AG. At the same time, Ypsomed is reviewing strategic options.

Our underlying growth drivers of simple self-treatment and the growth in biopharmaceutical drugs and biosimilars offer enormous potential. Our fully automated and scalable processes enable us to benefit from this growth. As a preferred partner of pharmaceutical and biotech companies, Ypsomed intends to further strengthen its dedicated business-to-business activities. With the new, clear focus and the simplification of structures, we want to concentrate on the many opportunities in the market for subcutaneous self-injection in future,

says CEO Simon Michel, explaining the decision to separate the business areas.

Outlook

For the 2024/25 financial year, Ypsomed expects sales growth from continuing operations of around 25%. At EBIT level, Ypsomed expects an operating profit of around CHF 140 million, before one-off effects from the divestment of the pen needle business.

The pen and autoinjector business continues to grow significantly

The Ypsomed Delivery Systems (YDS) business area grew strongly again in the financial year 2023/24 by 25.1 % or CHF 77.3 million compared to the previous year. Sales for the reporting period amounts to CHF 385.2 million (previous year: CHF 307.8 million).

• The development of commercial deliveries in the business with proprietary injection systems was particularly pleasing, with growth of 38.9 %;
• At CHF 74.1 million, project revenue remained stable at a high level;
• The acquisition of new projects continued successfully with 33 further project orders.

We continue to see a strong increase in customer demand for our injection systems. To prepare for the expected growth, we are accelerating our global capacity expansion,

says Ulrike Bauer, Chief Business Officer Delivery Systems, pleased with the positive development.

Ypsomed 2030 investment programme

To be able to serve the rapidly growing volumes and ensure security of supply to all customers, Ypsomed is accelerating its investment program and will invest over CHF 1.5 billion in production infrastructure in the field of injection systems over the next five years. In addition to the expansion of the Solothurn site and the construction of a first plant in China, a second factory will be built in Schwerin alongside the existing plant. It has also been decided to establish another large production site in North America. The two new factories are scheduled to be gradually ramped up in the second half of 2026 and mid-2027 respectively.

Growth with mylife YpsoPump

In the Ypsomed Diabetes Care (YDC) segment, Ypsomed achieved growth of 29.6 %, or CHF 34.5 million, adjusted for the sale of DiaExpert.

• Commercial sales of the mylife YpsoPump System improved by 69 %;
• The demand for mylife Loop was supported in particular by the approval of the system for women in pregnancy and children;
• In the second half of the year, installing of new patients had to be reduced due to the supply situation for infusion sets – caused by a delay in the ramp up of a new assembly line in Schwerin. Measures were taken to ramp up production capacity for infusion sets at the contract manufacturer in Mexico and at a third-party supplier.

With mylife Loop, our innovative solution for automated insulin dosing, consisting of the mylife YpsoPump and the mylife CamAPS FX App, we have shown that we are able to achieve sustainable growth in insulin pump therapy. I look forward to realising the full potential for people with diabetes with a clear focus and a highly motivated team,

says Sébastien Delarive, Chief Business Officer Diabetes Care, welcoming the strategic intentions of the Ypsomed Group.

Maximising the full potential of Diabetes Care

Long-term success in diabetes care requires a clear patient- and marketing-orientated culture as well as specific competencies and processes. Through a separation, Ypsomed Diabetes Care will be able to expand geographically as an independent organisation and further develop its innovative product offering. Following the submission of the approval application in Canada in September 2023, an application has been submitted to the FDA for approval in the USA. The necessary preparations for market entry in the USA are being driven forward by Ypsomed AG. The final decision on further investments for the market launch in the USA in the second half of 2025 will be made as part of the revised organisation. Ypsomed expects to reach the break-even point in the Diabetes Care business in the fourth quarter of the current financial year.

Strong earnings contribution from the pen and autoinjector business

The operating profit (EBIT) increased significantly to CHF 86.2 million (previous year CHF 60.6 million).

• The increase in sales and higher production capacity utilisation made a pleasing contribution to the result for pens and autoinjectors;
• The loss with the mylife YpsoPump continues to burden the result with CHF -44.6 million (previous year: CHF -53.5 million), in particular because the better result from the additional sales was reduced by additional costs due to the underutilisation of infusion set production and higher marketing expenses;
• The discontinued Pen Needles business had a negative impact on the result of around CHF -12.4 million (previous year: CHF -11.5 million);
• In the previous period, we realised an income on disposal of around CHF 17.3 million from the sale of DiaExpert and an operating profit contribution of CHF 3.9 million.

In the reporting period, Ypsomed achieved a net profit of CHF 78.4 million (previous year CHF 51.3 million). The net profit margin increased to 14.3 % (previous year 10.3 %). The earnings per share are CHF 5.74 (previous year CHF 3.82).

Sustained high investments for future growth

Cash flow from investing activities increased to CHF 195.1 million (previous year: CHF 122.0 million, with a net inflow of CHF 46.0 million from the divestment of DiaExpert). Of this amount, CHF 116.4 million (previous year: CHF 98.9 million) was invested in fixed assets, in particular in the further expansion of capacity for the YpsoMate autoinjector, the ongoing realisation of the doubling of capacity for the UnoPen and the expansion of the operating infrastructure. Investments in intangible assets of CHF 78.9 million (previous year: CHF 70.3 million) were made in the further development of platforms for pen and autoinjector systems, smartphone apps, FDA approval for the US pump market and digital services in the area of Digital Health.

Social responsibility

A further 500,000 people with chronic conditions were reached with injection systems from Ypsomed. Around 7.4 million people currently use Ypsomed injection systems. The climate targets were approved by the Science Based Targets initiative (SBTi) and the carbon footprint along the entire value chain was validated by an independent certification body. The YpsoMate 1 ml and YpsoMate 2.25 ml autoinjectors are already commercially available to customers as CO2 -reduced products from the NetZero program. In the past financial year, 330 new positions were filled in the Ypsomed Group, around half of them in Switzerland.

Increasing dividends

The Board of Directors will propose to the Annual General Meeting that CHF 2.00 per share (previous year: CHF 1.30) be distributed in dividends for the financial year 2023/24, half from reserves from capital contribution reserves and half from retained earnings. 

The Annual General Meeting of Ypsomed Holding AG will be held on 26 June 2024 in Burgdorf.