Bormioli Pharma SpA

Overview Key strengths Key risks Strong niche market positions in broadly stable end-markets. Capital-intensive nature of glass packaging operations. Limited customer concentration and long-standing customer relationships. Limited geographic diversification, with strong reliance on Italy and Europe. High entry barriers due to stringent regulatory requirements for pharmaceutical packaging. Volatile input costs (energy, resin, and soda ash). The weak demand for certain pharmaceutical products, (namely those related to winter diseases, like coughs and colds, and to surgical procedures) led to a 1% decline in Bormioli Pharma's 2021 sales. Its S&P Global Ratings-adjusted EBITDA margin dropped to 21.5% (compared with 23.1% in 2020), due to lower volumes sold and rising input costs during the second half of 2021, which the group did not

...We foresee that Bormioli Pharma's financial results will gradually recover in 2022 after underperforming our 2021 expectations. The weak demand for certain pharmaceutical products, (namely those related to winter diseases, like coughs and colds, and to surgical procedures) led to a 1% decline in Bormioli Pharma's 2021 sales. Its S&P Global Ratings-adjusted EBITDA margin dropped to 21.5% (compared with 23.1% in 2020), due to lower volumes sold and rising input costs during the second half of 2021, which the group did not pass on to its customers. In 2022, we estimate revenue growth of 8%-10% underpinned by a recovery in demand across...

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