Increased Profitability in the First 9 Months of 2024 Strengthens Antibiotice Iași’s Business

Antibiotice SA (symbol ATB) submitted to the Bucharest Stock Exchange (BVB) on Friday, November 15, 2024, the report containing the economic and financial results for the first 9 months of 2024. The data from the report reflect sustainable growth of the company’s main financial indicators, aligned with the development trend outlined in the business plan “The Future Together”, with ambitious goals set for 2030.

Key Achievements in the First 9 Months of 2024 Compared to the Same Period in 2023:

• 9% increase in turnover in both domestic and international markets;
• Net profit of 87.9 million RON, up 15%;
• 16% growth in business on international markets;
• 200% increase in ATB share value, from 1.18 RON as of 30.09.2023 to 3.44 RON in September 2024;
• Inclusion in the BET Index, the main index of BVB;
• Investments of 78.5 million RON, up more than 50%.

Consolidated Financial Results

The turnover of Antibiotice from both the domestic and international markets for the first 9 months of 2024 was 506 million RON, up 9% compared to the same period in 2023 when it was 463 million RON. The net profit reached 87.9 million RON, a 15% increase compared to the 76.7 million RON recorded in the same period of 2023.

Solvency Financial Indicators

• Current liquidity (current assets, less cash/bank debt on short-term) is 13.01, higher than 1.2 (the minimum level accepted by banks), indicating short-term financial balance and the company’s ability to meet short-term banking obligations using liquid assets.
• Total bank debt relative to EBITDA is 0.94, within parameters accepted by financial institutions (the maximum allowed is 3.5).
• Total bank debt/equity ratio is 0.14, lower than 1 (the maximum acceptable by financial institutions).

Business Consolidation in the Domestic Market

In the domestic market, Antibiotice achieved a net turnover of 303.79 million RON, 5% higher than in the same period last year. During this period, the company’s main objectives were to increase its market share correlated with the sales potential of its products in each segment of the pharma market: closed circuit pharmacies (hospitals) and open circuit pharmacies (retail).

16% Growth in Business on International Markets

From January to September 2024, Antibiotice achieved a turnover of 202.26 million RON in international markets, a 16% increase compared to the same period in the previous year, which reflects the positive effect of the company’s territorial expansion strategy.

Export of Antifungal Active Substances Strengthens the Company’s Position on International Markets

Antifungal active substances produced by Antibiotice Iași are sold in over 55 countries worldwide. In the analyzed period, progress was recorded in the main development projects in Europe, North America, and Latin America.

20% Growth in Finished Product Exports

Revenue from the sale of finished products amounted to 130.4 million RON, an increase of 20% compared to the same period last year (108.3 million RON). This result is due to the consolidation of the sterile beta-lactam penicillin portfolio in Europe, a region that represents 40% of export value. Antibiotice Iași is one of the most important players in this segment, despite the stringent market access conditions, including quality standards, supply chain optimization, pricing competitiveness in tenders, and the implementation of international sustainability standards.

In the Middle East, sales grew by 50% compared to January–September 2023. This increase resulted from the company’s entry into the United Arab Emirates market and the growth of sales in Saudi Arabia and Iraq, both in the anti-infective drugs portfolio and in cardiovascular treatments. In addition to new markets in Europe and the Middle East, Antibiotice has also made its first sales in Australia in September. Moving forward, the company aims to register new products and expand its presence in this region.

In other traditional regions, such as North America (USA and Canada), Asia (Vietnam), and Moldova, sales followed an upward trend of 8–20%, maintaining these regions in the top 5 strategic territories for the company.

Continuously Evolving Product Portfolio

In the first 9 months of 2024, the company’s portfolio was expanded with 19 new products. These address infectious diseases, cardiovascular issues, musculoskeletal disorders, digestive tract problems, and central nervous system conditions, in line with the company’s strategic development directions.

The solid oral forms portfolio was enhanced with 16 new products: 4 prescription anti-infective medications (critical medicines according to the European Medicines Agency list), 4 dietary supplements for urinary tract infections, abdominal discomfort, cardiovascular health, and promoting natural sleep, and 8 veterinary supplements (used for skin conditions, urinary tract infections, boosting immunity, gut flora restoration, joint health, liver function, and kidney support).

The topical products division added 3 new products: 1 medical device for preventing and treating scars and 2 dermatocosmetic products for seborrheic skin care with acne tendencies.

Sustainable Development Through Strategic Investment Projects

To ensure sustainable development, the company made total investments of 78.5 million RON in the first 9 months of 2024, more than 50% higher than in the same period in 2023 (51.03 million RON).

Investments were made in the development of the product portfolio, continuing research and development projects to bring new, high-quality, safe, effective, and competitive products to market. The main focus is on strengthening the domestic market position and leveraging potential in international markets by integrating products in line with the latest prescription and consumption trends.

• Investments in the “Sterile Products, Solutions, and Topicals Production, Packaging, and Storage Capacity” project, part of the “The Future Together 2030” business plan. In the period January–September 2024, procedures were carried out for signing design and execution contracts for two manufacturing flows (injectables and topicals).
• Investments in the new logistics base – finished product storage capacity. This investment began in 2023 and is expected to be completed by the end of 2024.
• Investments in the company’s digital transformation through the digitization of processes and information technology.

Inclusion in the BET Index, the Main Index of BSE

In September 2024, Antibiotice SA was included in the BET index, the main index of the Bucharest Stock Exchange, which includes the top 20 most traded companies listed, considered the most performing on the Romanian capital market.

For more information, interested parties can consult the Management Report for the first 9 months of 2024 on the Bucharest Stock Exchange (www.bvb.ro), the Financial Supervisory Authority (www.asfromania.ro), or the company’s website (www.antibiotice.ro), section “Investors > Financial Information > Financial Reports”.