PCAS: NET SALES AS OF DECEMBER 31, 2022

PCAS

Ecully, February 7, 2023

NET SALES AS OF DECEMBER 31, 2022

PCAS (Euronext Paris: PCA)a specialist in the development and manufacture of complex molecules for life sciences and innovative technologies, has announced the publication of its consolidated net sales as of December 31, 2022.

As of December 31, 2022, the PCAS group had consolidated net sales of 226.4 million euros, an increase of 21.1% compared to the same period of the previous financial year (+17.9% at constant exchange rate).

Pharmaceutical Synthesis

The Pharmaceutical Synthesis business achieved sales of €143.7 million, an increase of 20.1% compared to 2021 (an increase of 17.6% at constant exchange rates). Sales growth was mainly driven by the sale of Estetrol for Mithra (although given the difficulties in recovering certain related claims from this company), strong demand for products from the Turku site and a favorable EUR/USD exchange rate and the impact of the in the price increases carried out over the past few months to cover the sharp rise in raw material and energy costs.

Fine specialty chemicals

Fine Specialty Chemicals net sales were €82.7 million, an increase of 22.7% compared to 2021 (an increase of 18.6% at constant exchange rates). Business was robust throughout the year with very strong demand in Electronics and Cosmetics and a positive trend in Lubricants and Fine Chemicals. The increase in raw material and energy costs was passed on to customers and thus contributed to sales growth. The momentum in the industrialization of new products was also very good.

outlook

As announced on November 3rd and December 21st, 2022, 2022 results will remain very negative as activity levels remain insufficient to support fixed costs at several pharmaceutical synthesis sites and due to inventory write-offs for products that do not meet specifications. In addition, these results may be revised depending on the development of the ongoing legal proceedings related to the sales of Estetrol. A follow-up will be provided when the 2022 results are released on March 30, 2023.

In this regard, PCAS needs to investigate a temporary reduction in activity at the production site affected by this product, including some workshops dedicated to the manufacture of Estetrol. Although the impact of the difficulties with this customer on future business and results cannot be estimated at this point in time, the return to positive results announced for 2023 will be delayed due to the ongoing legal proceedings mentioned above.

PCAS Group will continue to benefit from the support of its majority shareholder Seqens (with 76.66%) to fund its activities and development.

NEXT FINANCIAL DISCLOSURE:

Results 2022, March 302023

ABOUT PCAS

PCAS specializes in the development and production of complex molecules for life sciences and innovative technologies. With approximately 12% of its net sales devoted to R&D and a large international footprint, PCAS is the industry partner of choice for market-leading large global corporations. With particularly high standards, the company offers a growing range of its own products and solutions in future-oriented segments. PCAS had net sales of EUR 226.4 million in 2022 and employs almost 1100 people in six countries.

To learn more about PCAS: www.pcas.com

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