Euroapi: share up as margin set to rise in 2025.
(CercleFinance.com) - Euroapi last night said that it expects its margins to improve significantly this year, after publishing annual results for 2024 in line with its expectations, which caused its share price to jump on the Paris Bourse on Tuesday.
The manufacturer of active pharmaceutical ingredients explained that it expected its profitability to rebound thanks to improved purchasing conditions and the implementation of industrial and operational efficiency measures.
Its "core Ebitda" margin should therefore be between 7% and 9% of sales this year.
For 2024, its "core Ebitda" margin came out at 5.5%, down 370bp y-o-y, mainly due to high fixed costs.
This figure is nevertheless in line with the company's latest forecasts, which were for a margin of between 4% and 7%.
Annual sales fell 10% to E911.9m, due to lower volumes for Sanofi, again in line with its expectations of a decline of between 8% and 11%.
For 2025, Euroapi forecasts a further decline in sales to Sanofi, leading it to anticipate slightly lower to stable sales on a comparable basis compared with 2024.
On the stockmarket, the share nevertheless soared over 11% an hour into trading, one of the strongest gains on a Paris market that was down 1.2%.
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