ADL Bionatur Solutions

SP: BNT

€77.2m market cap

€1.96 last close

Based in Spain, ADL Bionatur Solutions provides contract manufacturing of fermentation-based biochem products and antibiotics, and develops and licenses its own portfolio of OTC and prescription animal health products, including probiotics and vaccines.

Investment summary

ADL Bionatur Solutions (ADL-BS) provides contract manufacturing of fermentation-based biochem products and antibiotics, and also develops and licenses its own portfolio of OTC and prescription animal health products, including probiotics and vaccines. ADL will have 2,400m3 of total fermentation capacity available by mid-2019. While this operated at c 40% utilisation in H118, given recent contract wins and the ramping up in 2019 of two largest contracts (a six-year €146m flucosil-lactose deal and an arrangement with Amyris), ADL-BS expects to have 85% of capacity in use by year end 2019. This should drive it to firmly positive company-wide EBITDA and profitability in 2019.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A N/A N/A N/A N/A N/A N/A
2017A 14.6 (10.4) (13.7) (64.2) N/A N/A
2018E 27.8 (9.2) (13.3) (35.5) N/A N/A
2019E 64.8 5.7 1.2 3.1 63.2 45.7
Last updated on 20/03/2019
Industry outlook

We estimate the ADL unit’s solid pipeline of existing CMO contracts will
contribute to the unit’s generation of at least €55m in 2019 revenue (vs
€12m in 2017). ADL-BS reported H118 net debt of €41.2m, and we estimate year-end 2018 net debt of approximately €45.4m (including a €7.0m loan from its majority shareholder).

Last updated on 20/03/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 45.4
Forecast gearing ratio (%) 180
Price performance
%
1m
3m
12m
Actual (3.9) 12.6 (39.9)
Relative* (6.2) 3.0 (38.1)
52-week high/low €3.1/€1.6
*% relative to local index
Key management
Pilar de la Huerta CEO