Burgdorf – Ypsomed (SIX: YPSN) generated a growth in sales of 15.2% in the financial year 2021/22 compared to the previous year and achieved a consolidated turnover of CHF 464.8 million (previous year: CHF 403.7 million). On its continued growth path, the company trebled its operating result (EBIT) to CHF 28.6 million versus the previous year (previous year: CHF 9.3 million). Compared with the previous year, the net profit increased nearly fourfold to CHF 23.1 million (previous year: CHF 5.8 million). In addition, Ypsomed is planning a capital increase to support the targeted growth.
Ypsomed achieved sales growth of 15.2% in the financial year 2021/22, confirming the positive trend for products for the easy self-management of chronic diseases.
Other major events:
- Strong sales growth of 31% in the proprietary pen business;
- Successful acquisition of a further 36 project orders with existing and new pharmaceutical customers;
- Continued high level of investment amounting to 12% of turnover in innovative intangible assets and 11% in fixed assets;
- Partnership with CamDiab Ltd. offering users of the mylife YpsoPump the opportunity to benefit from an adaptive algorithm for automatic insulin delivery via the smartphone;
- Inauguration of the software development hub in Barcelona;
- Planned capital increase to support the targeted growth through conversion (offset of claims) of the existing loans from Dr. h.c. Willy Michel and a contribution in cash.
The long-term demographic fundamentals and trends for our recurring business model remain positive. The growth drivers selfcare of chronic conditions, the newest generation of liquid drug formulations, the expansion of global access to medicines due to biosimilars, as well as the opportunities for improved therapy management through digitisation all confirm that we are on the right track. We see the signs that our efforts to achieve profitable and sustainable growth are paying off and we are more confident than ever for the future,
comments a pleased CEO Simon Michel on the development of the business.
For the financial year 2022/23, Ypsomed expects sales growth at Group level to be in the same range as in the previous financial year as well as a further significant improvement in the operating profit (EBIT) of at least 50%, with a stronger second half of the year. For the following year 2023/24, Ypsomed expects to double the operating profit (EBIT) compared to 2022/23.
Capital increase to support the targeted growth
Ypsomed intends to further strengthen its equity ratio by issuing a maximum of 1 million fully paid registered shares with a nominal value of CHF 14.15 each. A subscription offer for new shares will be made to all existing shareholders. It is envisaged to sell the unsubscribed shares in a free placement. A corresponding part of the existing direct and indirect loans from Dr. h.c. Willy Michel will be converted into new shares. The capital increase supports the financing of pre-investments in the accelerated production scale-up for injection systems and increases financial flexibility to drive digitisation forward. Major shareholder Dr. h.c. Willy Michel states: “I am personally convinced of Ypsomed’s future growth prospects and will exercise my subscription rights in full.” The capital increase is expected to be implemented before the Annual General Meeting of Shareholders on June 29, 2022. The subscription or placement price will be set at market conditions with a discount expected to be between 2% to 3% after the end of the subscription and placement period, which is expected to last from June 16 to 23, 2022. The new shares will be eligible for the dividend payment of 06 July, 2022. Further information on the planned capital increase is expected to be published in a prospect in mid-June. The Zürcher Kantonalbank is the sole global coordinator of this capital increase.
Delivery Systems posts strong growth of 31% in the pen business
The Ypsomed Delivery Systems (YDS) segment increased by 22.7% or CHF 47.9 million in the financial year 2021/22. Turnover amounts to CHF 259.0 million (previous year: CHF 211.2 million).
- The development in the proprietary pen and autoinjector business was particularly pleasing, with a growth of 30.6%;
- Owing to the strong project and order pipeline, project revenues also grew by 31.4%;
- Successful acquisition of a further 36 project orders with existing and new customers.
Increased project revenues for Diabetes Care
In the Ypsomed Diabetes Care (YDC) segment, we posted turnover growth of CHF 9.8 million or 5.5% for the financial year 2021/22. The turnover for the reporting period amounts to CHF 187.5 million (previous year: CHF 177.7 million).
- This growth primarily resulted from higher revenues from development services for infusion systems for Eli Lilly as well as the YpsoPod development project for TecMed AG;
- Sales for YpsoPump stagnated owing to the late integration of continuous glucose monitoring and the lack of automated insulin delivery capabilities until that time. With its recently announced partnership with CamDiab, Ypsomed will begin rolling out automated insulin delivery via app in the early summer of 2022.
Trebled operating profit
The operating profit for the financial year 2021/22 grew significantly and was CHF 28.6 million (previous year: CHF 9.3 million).
- Higher utilisation of the production capacity for Ypsomed Delivery Systems as well as continued high project revenues made a positive contribution to earnings;
- The operational business with the mylife YpsoPump burdens the result with CHF -51.3 million (previous year: CHF -43.8 million). Higher depreciation of around CHF 5 million as well as a higher marketing spend of around CHF 3 million for launch activities of the new product features affect the result here;
- The positive development of Ypsotec, which is clearly returning to profitability again, supports the result.
In the financial year 2021/22, Ypsomed generated a net profit of CHF 23.1 million (previous year: CHF 5.8 million). The earnings per share are CHF 1.83 (previous year: CHF 0.46).
Continued high growth investments
Cash flow from investing activities in the reporting period was CHF 125.7 million, again up from the previous year (previous year: CHF 106.9 million). Investments in fixed assets amounted to CHF 51.6 million (previous year: CHF 59.2 million). For example, at the new production plant in Schwerin, investments were made in automated assembly lines for YpsoMate, UnoPen as well as the infusion set, and also in injection moulding machines and tools. At the Swiss sites, further investments were made in the full expansion of capacities, industrialisation of the YpsoDose and additional operating infrastructure.
Of the CHF 75.8 million invested in intangible assets (previous year: CHF 67.4 million), CHF 18 million was spent on patent letters for the control system of the insulin pump, which was already recorded on the balance sheet of the previous period. Further investment was made in the further development of platforms for injection systems, the smartphone apps and service cloud for the YpsoPump and in digital services in the area of Smart Services.
Sustainable dividend policy
In the interests of a sustainable dividend policy, the board of directors will propose to the Annual General Meeting that CHF 0.60 per registered share (previous year: CHF 1.16) be distributed in dividends for the financial year 2021/22, half of which from capital contribution reserves and the other half from retained earnings. The increased dividend in the previous year took into account a compensation payment received as a result of the settlement of the legal dispute with Insulet Corp.
In the financial year 2021/22, Ypsomed once again underlined its social responsibility by verifiably procuring electricity for Ypsomed AG and all its subsidiaries from 100% renewable energy sources in 2021. The company continues to drive the digitisation of its portfolio and extend this into comprehensive therapy management solutions which support improved therapeutic outcome. The pharmaceutical development towards liquid active ingredients allows Ypsomed to serve new therapeutic areas and to expand global access to medical care through biosimilars. With cooperations such as the newly founded “Alliance to Zero”, Ypsomed wishes to actively shape the pharmaceutical sector across the entire value creation chain towards net zero emissions.
Annual General Meeting 2022
After an interruption of two years, it is possible to hold the Annual General Meeting of the Ypsomed Holding AG again in a physical setting. It will be held in Burgdorf on 29 June 2022.
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