PHARMANUTRA S.P.A. ANNUAL FINANCIAL REPORT
31 December 2023
Andrea Lacorte, President of PharmaNutra S.p.A., comments: "Closing another year with more than positive results is always very important, but doing so in a historical period in which the company has invested means and resources to increase its business in the long term, both in Italy and abroad, is an exceptional result to all intents and purposes. We are very happy to share these draft financial statements with the Shareholders' Meeting, that is a concrete demonstration of the validity of our way of doing business and of the underlying ideas and insights. We strongly believe in what we do, and we will continue to tread these paths, characterised by strong investments in research and development, and by strategies aimed at an increasingly consolidated expansion abroad, on the strength of our patents that - I will never get tired of repeating it - represent essential strategic assets".
""The Board of Directors is proud and deeply satisfied to present to the Shareholders' Meeting the draft financial statements in which, together with all the investments aimed at an important long-term business development, a margin level in line with PharmaNutra's typical growth over the years is maintained. This is a particularly important result because it does mean that our company is able to look far into the future, while maintaining the outstanding performance that characterises us", adds Roberto Lacorte, Vice Chairman and CEO of the Group. "In addition to this, great satisfaction comes from the achievement of an equally important
goal which is the €100 million revenue milestone, a step that represents a crucial transition point towards new and ambitious
goals for the future".
PharmaNutra Group is a group of Italian companies based in Pisa, specialised in the pharmaceutical and
nutraceutical sector. The companies PharmaNutra S.p.A., Junia Pharma S.r.l., Alesco S.r.l., Akern S.r.l., PharmaNutra España S.L.U. and PharmaNutra USA Corp. are part of the Group.
Thanks to the continuous capital expenditures in R&D, which have led to the approval of several patents referred to the Sucrosomial® technology and Cetylated Esters, the Group has succeeded in a short time in establishing itself as leader in the production of minerals and iron-based nutritional supplements, further to being considered one of the top emerging players in the field of medical devices dedicated to the restoration of joint capacity.
Today the PharmaNutra Group has over 100 employees and a network of more than 150 one-firm
Pharmaceutical Sales Representatives, who are the company's real driving force in the territory: a commercial structure built to respond to the peculiarities of the domestic market, but which has been able to adapt quickly and efficiently to international requirements.
The Group has been present on foreign markets since 2013 with a flexible and innovative business model, which is based on an established network of excellent partners. Currently, the products of PharmaNutra companies are present in over 70 countries worldwide, including Europe, Asia, Africa and America, through a network of more than 45 carefully selected business partners.
In 2022, Akern S.r.l. - a company specialising in the field of bioimpedance analysis boasting over 40 years of history and innovation behind it - became part of the PharmaNutra Group, with the aim of realising strategic synergies for strengthening and diversifying the business lines.
In support of new growth strategies, PharmaNutra España and PharmaNutra USA were established in 2023 with the aim of directly handling product distribution.
CORPORATE BODIES
Board of Directors
Andrea Lacorte (Chairman)
Roberto Lacorte (Vice Chairman)
Carlo Volpi (Director)
Germano Tarantino (Director)
Alessandro Calzolari (Independent Director)
Marida Zaffaroni (Independent Director)
Giovanna Zanotti (Independent Director)
Board of Statutory Auditors
Giuseppe Rotunno (Chairman of the Board of Statutory Auditors)
Michele Luigi Giordano (Standing Auditor)
Debora Mazzacherini (Standing Auditor)
Alessandro Lini (Alternate Auditor)
Elena Pro (Alternate Auditor)
Independent auditors
BDO Italia S.p.A.
INTRODUCTION
PharmaNutra S.p.A., whose shares are traded on the STAR Segment of the Mercato Telematico Azionario ("MTA"), organised and managed by Borsa Italiana as of 15 December 2020, operates in the nutraceutical and pharmaceutical sector with the aim of improving people's well-being. Based on continuous research and development, it has introduced new nutritional concepts and new active ingredients to the market. It manufactures products using innovative technologies, paying particular attention to the protection of intellectual property.
The administrative body of PharmaNutra S.p.A. resolved to prepare the Consolidated and Parent Company Statutory Financial Statements in accordance with the IAS/IFRS (International Accounting Standards and International Financial Reporting Standards) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union. The amounts in the accounting statements, tables and explanatory notes are expressed in thousands of Euro, unless otherwise stated.
CONTENTS
INFORMATION ON THE RUSSIA - UKRAINE CONFLICT AND THE MIDDLE EAST CONFLICT ....................................................... 5
SIGNIFICANT EVENTS OF 2023 ........................................................................................................................................................ 5
OPERATING PERFORMANCE ............................................................................................................................................................ 8
REFERENCE MARKETS IN WHICH THE GROUP OPERATES ......................................................................................................... 23
INVESTMENTS ................................................................................................................................................................................. 32
RESEARCH AND DEVELOPMENT ACTIVITIES ................................................................................................................................ 32
MARKETING ACTIVITIES ................................................................................................................................................................. 35
CORPORATE GOVERNANCE INFORMATION .................................................................................................................................. 37
REMUNERATION REPORT .............................................................................................................................................................. 37
PHARMANUTRA ON THE STOCK EXCHANGE ................................................................................................................................ 37
TRANSACTIONS WITH RELATED PARTIES .................................................................................................................................... 40
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES ..................................................................................................... 42
INFORMATION PURSUANT TO ARTICLE 2428, PARAGRAPH 2, POINT 6-BIS, OF THE ITALIAN CIVIL CODE ........................... 46
OTHER INFORMATION .................................................................................................................................................................... 47
SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE FINANCIAL YEAR ........................................................................ 49
FORESEEABLE BUSINESS OUTLOOK ............................................................................................................................................. 51
PHARMANUTRA GROUP CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2023 ........................................... 52
FINANCIAL STATEMENTS ............................................................................................................................................................... 53
CONSOLIDATED BALANCE SHEET ......................................................................................................................................................................................................................................... 53
CONSOLIDATED INCOME STATEMENT ................................................................................................................................................................................................................................. 54
COMPREHENSIVE INCOME STATEMENT ............................................................................................................................................................................................................................. 54
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY ................................................................................................................................................................ 55
CONSOLIDATED CASH FLOW STATEMENT .......................................................................................................................................................................................................................... 56
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF PHARMANUTRA GROUP ............................... 57
1. LAYOUT AND CONTENT OF THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................................................................... 57
2. CONSOLIDATION AREA .............................................................................................................................................................................................................................................. 58
3. CONSOLIDATION CRITERIA AND TECHNIQUES .......................................................................................................................................................................................... 59
4. ACCOUNTING STANDARDS AND VALUATION CRITERIA ...................................................................................................................................................................... 59
5. IFRS ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS ENDORSED OR APPLICABLE/APPLIED FROM
01/01/2023 ......................................................................................................................................................................................................................................................................... 74
6. MAIN ESTIMATES ADOPTED BY THE MANAGEMENT ............................................................................................................................................................................ 75
7. RISK AND UNCERTAINTY MANAGEMENT ...................................................................................................................................................................................................... 79
8. DISCLOSURE BY OPERATING SEGMENTS ..................................................................................................................................................................................................... 88
9. COMMENTS ON THE MAIN ITEMS ...................................................................................................................................................................................................................... 89
10. OTHER INFORMATION ........................................................................................................................................................................................................................................ 112
11. EVENTS SUBSEQUENT TO THE END OF 31 DECEMBER 2023 ................................................................................................................................................ 113
12. COMMITMENTS ....................................................................................................................................................................................................................................................... 113
13. CONTINGENT LIABILITIES AND MAIN OUTSTANDING DISPUTES .......................................................................................................................................... 114
14. TRANSACTIONS WITH RELATED PARTIES ............................................................................................................................................................................................. 114
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 5, OF
ITALIAN LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998 ................................................................................................ 119
INDEPENDENT AUDITOR'S REPORT ............................................................................................................................................ 120
FINANCIAL STATEMENTS AS AT 31 DECEMBER 2023 PHARMANUTRA S.P.A . ....................................................................... 121
FINANCIAL STATEMENTS ............................................................................................................................................................. 122
PHARMANUTRA S.P.A. BALANCE SHEET ........................................................................................................................................................................................................................ 122
PHARMANUTRA S.P.A. INCOME STATEMENT ............................................................................................................................................................................................................... 123
PHARMANUTRA S.P.A. COMPREHENSIVE INCOME STATEMENT ............................................................................................................................................................................ 123
PHARMANUTRA S.P.A. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY ................................................................................................................................................ 124
PHARMANUTRA S.P.A. STATEMENT OF CASH FLOWS- INDIRECT METHOD ..................................................................................................................................................... 125
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS OF PHARMANUTRA S.P.A ............................................................. 126
1. EXPLANATORY NOTES TO THE ANNUAL FINANCIAL STATEMENTS ........................................................................................................................................ 126
2. ACCOUNTING STANDARDS AND VALUATION CRITERIA .................................................................................................................................................................. 127
4. MAIN ESTIMATES ADOPTED BY THE MANAGEMENT ........................................................................................................................................................................ 142
5. RISK AND UNCERTAINTY MANAGEMENT .................................................................................................................................................................................................. 145
6. COMMENTS ON THE MAIN ITEMS OF THE FINANCIAL STATEMENTS .................................................................................................................................... 154
7. OTHER INFORMATION ........................................................................................................................................................................................................................................... 178
8. EVENTS SUBSEQUENT TO THE END OF 31 DECEMBER 2023 .................................................................................................................................................... 178
9. COMMITMENTS .......................................................................................................................................................................................................................................................... 179
10. CONTINGENT LIABILITIES AND MAIN OUTSTANDING DISPUTES ........................................................................................................................................... 179
11. TRANSACTIONS WITH RELATED PARTIES ............................................................................................................................................................................................. 179
12. ALLOCATION OF THE RESULT FOR THE YEAR ..................................................................................................................................................................................... 184
CERTIFICATION OF THE ANNUAL FINANCIAL STATEMENTS PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 5, OF ITALIAN
LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998 ............................................................................................................... 185
INDEPENDENT AUDITOR'S REPORT ............................................................................................................................................ 186
STATUTORY AUDITOR'S REPORT ................................................................................................................................................. 187
MANAGEMENT REPORT
Dear Shareholders,
the consolidated financial statements for the year ended 31/12/2023 showed a net result of Euro 12.8 million compared to the net result of Euro 15.1 million of the previous year.
Taxes for the year amounted to Euro 10.4 million (net of deferred tax assets), of which Euro 2.6 million related to the definition, through the special redemption procedure, of the 2017-2021 tax periods in view of the decision to adhere to the collaborative compliance tool provided for by Italian Legislative Decree No. 128 of 5 August 2021.
Pre-tax result amounted to Euro 23.3 million (Euro 23.4 million in 2022). Pre-tax result, in turn, was determined by allocating Euro 3.1 million (about Euro 1.3 million in 2022) to the provision for amortisation, depreciation and write-downs.
The PharmaNutra Group (hereinafter also the "Group") consists of PharmaNutra S.p.A. ("PharmaNutra", the
"Company" or the "Parent Company") and its subsidiaries Junia Pharma S.r.l. ("Junia Pharma"), Alesco S.r.l.
("Alesco"), Akern S.r.l. ("Akern"), PharmaNutra Usa Corp. ("PharmaNutra USA" or "PHN USA") and PharmaNutra
España S.L. ("PharmaNutra España" or "PHN ESP").
PharmaNutra, a nutraceutical company located in Pisa, is specialised in the development of nutritional supplements and medical devices. In particular, it deals with the research, design, development and marketing of proprietary and innovative products. Among these, the most relevant are the ones based on Sucrosomial Iron®, namely the products of Sideral® line, and the products for the restoration of joint and movement capacity in osteo-articular diseases, consisting of Cetilar® line.
It complies with strict quality standards while focusing on the unique and exclusive raw materials used throughout the country.
It designs and produces formulations with an important scientific background.
Since 2005, it has been developing and marketing directly and independently a line of products under its own brand, being managed through a structure of Pharmaceutical Sales Representatives who present the products directly to the medical class. PharmaNutra now has the know-how to manage all stages from design, formulation 1
and registration of a new product to marketing and sales, up to Pharmaceutical Sales Representatives' training.
The business model developed has been pointed out by key health marketing experts as an example of innovation and efficiency in the entire pharmaceutical scenario.
The Company constantly boosts its research and development activities in order to further strengthen its results in its industry.
Junia Pharma is active in the production and marketing of pharmaceuticals, medical devices, OTC and nutraceuticals for the paediatric sector.
Alesco produces and distributes raw materials and active ingredients for the food, pharmaceutical and food supplement industries.
Akern is an Italian company established in 1980 to research, develop and produce medical instrumentation and software for monitoring body composition using bioimpedance techniques.
PharmaNutra USA was established in December 2022 to distribute PharmaNutra® branded products in the US market through direct distribution on the territory and selected e-commerce channels. The company has a capital of USD 1,800,000 and operational headquarters in Florida.
PharmaNutra España was established in March 2023 with its headquarters in Barcelona and capital of Euro
50,000. It is in charge of the distribution of the Cetilar® and Cetilar® Nutrition line products in the Spanish market through selected online sales channels and a dedicated sales network.
Operating conditions and business development
An analysis of the Group's financial position, performance and operating result is provided in the following paragraphs, which specifically deal with the market scenario and the products and services offered, the investments and the main indicators of economic performance and the evolution of the financial position.
Operating results
The consolidated financial statements of PharmaNutra Group as at 31/12/2023 are as follows:
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Pharmanutra S.p.A. published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 17:24:41 UTC.
