Fagron Sa Ord

Hello, good morning, everyone. Welcome to Fagron's first quarter 2026 trading update. I'm joined today by our CEO, Rafael Padilla, and our CFO, Karin De Jong. We will open the floor for questions at the end of the session. With that, I will hand over to Rafael.

Thank you, Ignacio, and good morning, all. We're pleased to report a solid quarter with revenues of €263 million, representing 10.3% growth. Results were driven by outstanding performance in LATAM and strong contributions from our M&A. Brands continue to perform well across the board, supported by our innovation capabilities and commercial strategy. Operational excellence initiatives also continue to deliver benefits. During the quarter, we completed the acquisition of Pharmavit in the Netherlands and strengthening our position in the nutraceutical ingredients market. Also worth mentioning that PharmaVit integration together with all previously announced acquisition are progressing as planned. On guidance, we are maintaining our top line outlook of mid to high single digit organic growth at CR. On profitability, we expect a margin of circa 20% for the year reflecting the PharmaVit acquisition. We also expect H2 to be stronger than H1. Moving on to the regional dynamics, EMEA reported a steady performance with all segments contributing. B&E performance was driven by innovative product launches and the continued rollout of our global brands strategy. Compounding services benefited from strong demand and new customer wins across the region. Turning to LATAM, we've seen an outstanding growth this quarter, mainly driven by brands in Brazil, together with contributions from Prepharma and Vipacum. Brands continue to deliver strong momentum, driven by our innovation power and targeted commercial strategy. In North America Pacific, organic growth was positive despite the absence of GLP-1 related revenues. B&E delivers strong growth supported by new product launches, higher product availability, and improved operational performance. In compounding services, the underlying business remains strong and continues to benefit from portfolio expansion and new customer wins. And as already explained, the GLP-1 comparatives will normalize throughout the year. Finally, our investments in Las Vegas and Wichita facilities are progressing as planned. Moving on to our outlook, we are maintaining our revenue guidance of mid to high single digit organic growth at CR. We expect profitability margin of circa 20% reflecting the Pharmavit acquisition. Pharmavit brings 62 million euros in annual revenues with an EBITDA margin of around 14%. And in line with our integration plan, we are confident in bringing the margins towards groups level within 18 to 24 months. Our capex will remain at around 3.5% of revenues, excluding the previously announced one-off projects. To conclude, the start of the year shows the resilience of our business model, consisting of predictable growth and continued progress on quality and operational excellence. We also continued with our discipline M&A strategy and are now heavily focused on integration and value creation. This performance builds on a long-term track record. We also remain confident in the underlying drivers of our end markets and our ability to deliver the mid-term targets. With that, let us open the line for questions.

Ladies and gentlemen, we are now ready to take your questions. If you have a question, please press hashtag five on your telephone keypad. Our first question comes from Michael Heider from Binnenberg Bank. Please go ahead.