Although large capex is putting FOCF as well as adjusted debt to EBITDA under pressure, we believe that if the growth plan is executed successfully it should enable the group to materially increase its EBITDA, reducing its financial leverage below 3x in 2019 and restoring positive FOCF. The company has invested €53 million on bolt-on acquisitions in 2018. This allows the group to enlarge its offer, which is an important sales argument to gain customers. Furthermore, we note that the acquisition of Agrilabs positions Huvepharma in biological innovation. The product range of the subsidiary includes licensed and custom vaccines, a proprietary DNA platform, and adjuvant technologies. Nevertheless, we believe competition could intensify as all players are working on enhancing their
