An analysis of Italian multinational Menarini

Milano Finanza has published a long article about the Italy-based multinational Menarini, which has grown at higher rates than the pharmaceutical industry’s average over the last years. The group, controlled by the holding company Pharmafin, which belongs to the Aleotti family, reported a €409 EBITDA in 2015, which rose to €569m in 2016. Net profit was €278m in 2016, a significant improvement over the €76m reported in 2015. Revenues were €3.6bn in 2016, 72.8% of which had been generated outside Italy. Italy is perhaps the market in which Menarini has the slowest growth: indeed its revenues there rose to €947m in 2015 to €958m in 2016. Sales in Europe, instead, increased from €1.4bn to €1.6bn. Moreover, Menarini has a considerable cash reserve, estimated at €1.1bn, and a debt/EBITDA ratio far below the pharmaceutical industry’s average. The group has 16 production sites – 7 of which in Italy and 9 abroad – employing a total of 16,772 people. Menarini plans to use its cash reserve for significant acquisitions in China, Russia and Poland, the group’s chairman Lucia Aleotti has said in the last few weeks. On the occasion, Aleotti has firmly denied rumors on an IPO. Menarini is Italy’s top pharmaceutical company with over €3bn in revenues; Chiesi ranks second with €1.6bn, followed by Bracco (€1.3bn), Recordati (€1.2bn) and Zambon (€700m). (Source: Milano Finanza)