Bachem increases sales and profitability

• Group sales rise to CHF 605.3 million (+4.8%) in 2024.
• EBITDA increases to CHF 176.3 million (+5.7%).
• EBITDA margin lies at 29.1%.
• In local currencies sales rise by 6% and EBITDA increases by 7.7% to a margin of 29.4%.
• Board of Directors proposes an increase of the dividend by CHF 0.05 to CHF 0.85 per share.

Group results

The Bachem Group (SIX: BANB) increased sales in Swiss francs by 4.8% to CHF 605.3 million in 2024. In local currencies, sales increased by 5.6%.
Operating income before depreciation and amortization (EBITDA) increased by 5.7% to CHF 176.3 million (local currencies: +7.7%), which translates into an EBITDA margin of 29.1% (2023: 28.9%). In local currencies, the EBITDA margin amounted to 29.4%.

Operating income (EBIT) rose by 2.8% to CHF 133.0 million (local currencies: +5.3%). The EBIT margin in the reporting year was reduced to 22.0% (2023: 22.4%), primarily due to increased depreciation and amortization on new investments.
Net income grew to CHF 120.2 million (+7.5%) with a margin of 19.9% (2023: 19.4%).

Sales by product category

Bachem achieved sales of CHF 327.0 million (2023: CHF 309.0 million, +5.8%) with commercial active ingredients (Commercial API). This was mainly due to a strong increase in sales of patent-protected peptides.
In the clinical medicines category (CMC Development), sales increased to CHF 234.4 million (2023: CHF 227.5 million, +3.0%) driven by strong peptide-based development projects.
Business with research chemicals and specialty products (Research & Specialties) grew to CHF 43.8 million (2023: CHF 40.8 million, +7.5%), among other things thanks to higher sales of peptides for use in diagnostics.

Substantial capacity expansion

Bachem is pursuing an investment program to expand capacity at all sites. CHF 292.2 million were invested in 2024. In addition to expansion, Bachem is also continuously optimizing the utilization of existing buildings and facilities to achieve operational improvements.
Bachem began construction of the world’s most advanced production plant for large volumes of peptides and oligonucleotides in 2021 (building “K”) in Bubendorf. The first manufacturing equipment in the building is in commissioning and qualification. Transition to the production of first test batches is intended to take place as planned from the 2nd quarter of 2025. The successful ramp-up of commercial production in the building is a key prerequisite for achieving the revenue target in 2026.
For a further manufacturing site planned in Sisslerfeld in the Swiss municipality of Eiken, Bachem purchased a third portion of land in the first half of 2024. Bachem intends to refine a site development plan (“Entwicklungsrichtplan”) for the authorities ahead of pursuing first construction applications in 2025.
Bachem continues to invest in its entire network of sites, focusing on site-specific core competencies. In the US, high-volume capacity at the Vista site is being expanded. In Torrance, Bachem is focusing on promising small-volume clinical projects, while investments at the Vionnaz site in Western Switzerland are aimed at securing the supply of key precursors.

Outlook

For 2025 Bachem expects growth in local currencies between 10% and 15%. The EBITDA margin in local currencies should be in the high twenties. The company plans to make CAPEX investments of more than CHF 400 million in 2025. Based on current orders, the company aims for annual sales of more than CHF 1 billion and an EBITDA margin of over 30% in 2026.