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2009 Annual results

Further profit margin growth and significant cash generation:

- Sales up 13%, operating profit up 15%, net profit up 17%

- Record free cash flow of € 17.5 million (X 3.7)

- Net cash position turned positive

- Proposed dividend of 0.55 € (up 22%)

The Board of Directors’ meeting of 15 March 2010, chaired by Albert SAPORTA, approved the 2009 consolidated financial statements:

2009: significant increase in profitability and financial position indicators

• Profitable growth to finance the Group’s long-term expansion

The 2009 sales growth dynamics (up 13%, 12% organic) as well as strict control on operating expenses (63.2% of sales vs 66.0% in 2008, before R&D) enabled the Group to both absorb research efforts (up 26%, representing 24% - gross - of sales) and further improve profit margins: operating profit totalled € 32.2 million, that underlined an operating profit margin of 16.7% (16.5% in 2008).  Net profit grew for the ninth consecutive year by 17% to € 22.2 million, generating an 11.5% net profit margin (11.1% in 2008).

• A particularly sound financial position

Well-controlled capital expenditure and working capital requirements generated a record free cash flow of € 17.5 million (x 3.7 compared to 2008).  Net debt declined by € 14.5 million.  The Group reports a positive year-end net cash position for the first time in 10 years, amounting to € 4.9 million.

The audit procedures have been performed. As soon as the management report will have been reviewed, the audit report will be issued. The Group’s 2009 consolidated financial statements are available from the Group’s website: http://www.stallergenes.com

2010 outlook 

The laboratory is focusing its efforts on bringing Oralair^® to market, after it was granted a marketing authorisation in 22 European countries in November 2009, on the registration of Actair^® in Europe and on the partnerships it put into place to roll out Stalair^® products internationally over the medium term.

The effects of the economic crisis and the cost cutting steps taken by health authorities make our 2010 sales guidance uncertain. Nonetheless, Stallergenes expects further growth of sales in excess of 8%.  Against this background, the laboratory set itself the objective of increasing its margins, bearing in mind that the greater part of the cost of the Oralair^® grasses study in the US had been incurred by end 2009.  The results of this study will be known and released within the next few weeks. 

Significant recent transactions and events

The new research and control laboratories have been completed: Stallergenes invested € 28 million in equipment over the past 5 years to put in place the Stalair^® programme pharmaceutical platform, which is now fully operational. 

Dividend

In order to demonstrate its confidence in the Group’s development outlook, the Board of Directors will propose to the General Meeting to be held on 28 May 2010, the distribution of a dividend of € 0.55 per share, reflecting a 22% increase over the previous year.

OSRD eligibility 

As of 26 March 2010, Stallergenes will be eligible for the OSRD compartment (Euronext Paris deferred settlement service). This system, which enables both institutional and individual investors to use leverage to buy or sell shares, while being regulated by strict prudent rules, should increase share liquidity.