medmix announces intention to sell entity in Poland and revises outlook for FY 2022
January 11, 2023
Ad hoc announcement pursuant to Art. 53 LR |
MEDMIX ANNOUNCES INTENTION TO SELL ENTITY IN POLAND AND REVISES OUTLOOK FOR FY 2022
medmix announces negotiations for the sale of its Polish entity, following its decision to stop production in Wroclaw, Poland. The company revises its outlook for FY 2022, reflecting the impact of mitigating sanctions in Poland, ongoing inflationary pressures, and mix.
medmix to deconsolidate and enter into negotiations for the sale of its legal entity in Wroclaw, Poland
Since sanctions on its Polish subsidiary were first imposed in April 2022, medmix has unequivocally stated that the sanctions are erroneous. While it continues to appeal these local administrative decisions which are based on a misunderstanding of its governance and shareholding structure, medmix has entered into negotiations to dispose of its Polish legal entity and to exit operations in Poland, subject to regulatory approvals.
As previously guided, the one-off impact on 2022 Net Income from the deconsolidation of the Polish legal entity is expected to be around CHF 25 million, reflecting the write-off of Polish net assets and impairment of intercompany loans. In addition, one-off costs of around CHF 5 million have been incurred in 2022 related to the ramp up of production outside Poland to replace volumes previously manufactured at the Wroclaw site. All mitigation actions are in place. While it regrets the impact on its loyal Polish employees, medmix is now well equipped to operate without medmix Poland.
medmix confirms its guidance for Total Revenue, in the range of CHF 460-470 million for FY2022. Adjusted EBITDA margin is expected to be around 22% compared to 24% previously stated, -100 bps due to higher costs for production, logistics and warehousing of products previously manufactured in Poland, and -100 bps from the impact of inflation and change in mix resulting from stronger sales in the Consumer and Industrial business areas.
medmix is a global leader in high-precision delivery devices. We occupy leading positions in the healthcare, consumer and industrial end-markets. Our customers benefit from a dedication to innovation and technological advancement that has resulted in over 900 active patents. Our 13 production sites worldwide together with our highly motivated and experienced team of nearly 2’000 employees provide our customers with uncompromising quality, proximity and agility. medmix is headquartered in Baar, Switzerland. Our shares are traded on the SIX Swiss Exchange (SIX: MEDX). www.medmix.swiss
Media Relations: Yasemin Diethelm, IRF
Investor Relations: Sheel Gill, Head of Investor Relations
This document may contain forward-looking statements including, but not limited to, projections of financial developments, market activity, or future performance of products and solutions containing risks and uncertainties. These forward-looking statements are subject to change based on known or unknown risks and various other factors that could cause actual results or performance to differ materially from the statements made herein.