STADA Annual General Meeting: Approval of the actions of the Executive Board for financial year 2016 postponed – guidance 2017 confirmed
08/30/2017 - 04.18 PM . Press Release
- Expansion and acceleration of the transformation program to improve profitability planned
- Dividend increased to Euro 0.72 per share
- Executive Board remuneration system approved
- Auditing firm PricewaterhouseCoopers GmbH appointed auditor of the consolidated financial statements for 2017
Bad Vilbel, August 30, 2017 – At the Ordinary Annual General Meeting of STADA Arzneimittel AG on August 30, 2017 in Frankfurt am Main, the Executive Board presented sound figures for financial year 2016 and a positive outlook for business development in 2017. “Important foundations were already laid in 2016 on the road to significantly higher profitability”, said Chairman of the Executive Board Engelbert Coster Tjeenk Willink, adding however that “we will further expand the transformation program that has been initiated and continue it at an accelerated pace.” Focus will be maintained on the two-pillar strategy consisting of the enduringly reliable generics business along with the attractive branded products business. The latter area in particular will be expanded in a targeted manner. Through the successful takeover by Bain Capital and Cinven, the support of two strong financial partners is now assured – partners who have already declared their future support for this strategic orientation.
Financial year 2016 targets slightly exceeded
In addition to the strong organic growth – STADA launched 665 products around the world in the previous financial year – smaller selected acquisitions also contributed to the successful financial year 2016. The adjusted net income increased by 7 percent to Euro 177.3 million. “Especially pleasing is the fact that, as a result, it was possible to reduce net debt by nearly Euro 100 million”, said Dr. Bernhard Düttmann, CFO at STADA. “The ratio of net debt to adjusted EBITDA thus improved to 2.8 and was even below the declared target of 3.”
Approval of the actions of the Executive Board postponed
The approval of the actions of the Executive Board for financial year 2016 was postponed. The other agenda items were resolved in accordance with the administrative proposals. The proposal to increase the dividend by 2 cents to Euro 0.72 for financial year 2016 was also approved. The submitted remuneration system for the Executive Board, which was again adjusted to new regulatory developments, was also approved by a large majority of the shareholders.
The Annual General Meeting also appointed auditing company PricewaterhouseCoopers GmbH as auditor of the consolidated financial statements for financial year 2017.
“Despite a very challenging environment, STADA has tremendous growth opportunities and efficiency potentials that we will leverage”, said Willink, looking optimistically into the future and adding that this will of course also mean changes: “Only when we operate with a greater degree of integration and become significantly more efficient will we be able to achieve sustainable success in an increasingly tough competitive environment.” STADA can thus be made more effective and future-oriented and developed into a true global player.
Arround 250 shareholders representing 81 percent of the voting share capital attended this year's Annual General Meeting.
The script of today’s speech from the Chairman of the Executive Board Willink and the voting results to all items on the meeting’s agenda has been published on STADA’s website www.stada.com/agm2017.
About STADA Arzneimittel AG
STADA Arzneimittel AG is a publicly-listed company with headquarters in Bad Vilbel, Germany. STADA consistently focuses on a multi-pillar strategy of generics and branded products (OTC) with an increasingly international market orientation. Worldwide, STADA is represented in more than 30 countries with more than 50 subsidiaries. Branded products such as Grippostad and Ladival are among the highest selling in their product category in Germany. In financial year 2016, STADA achieved adjusted Group sales of Euro 2,167.2 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of Euro 398 million and adjusted net income of Euro 177.3 million. As of December 31, 2016, STADA employed about 10.900 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(at)stada.de