At the beginning of our visit, CEO Marcel Imwinkelried provided valuable insights into the company’s strategic direction and current developments in the global pharmaceutical industry.

One of the key topics discussed was the increasing trend towards deglobalisation and the associated regionalisation of supply chains. Pharmaceutical companies are placing greater emphasis on manufacturing their products closer to their respective end markets. Local production in the US and China, in particular, is becoming increasingly important amid geopolitical uncertainties and evolving regulatory frameworks. With its international manufacturing footprint, Siegfried is well positioned to benefit from this trend.

Another key focus was production capacity utilisation. For a CDMO provider, maintaining high capacity utilisation is essential, as the manufacturing of active pharmaceutical ingredients and finished pharmaceutical products involves substantial fixed costs and significant investment in production facilities. Higher utilisation allows fixed costs to be spread over greater production volumes, thereby positively impacting profitability.

Changes in the pharmaceutical innovation landscape were also discussed. New active ingredients and innovative therapeutic approaches are increasingly being developed by smaller companies and start-ups. These businesses often lack their own industrial manufacturing capabilities and therefore rely on specialised development partners and contract manufacturers. This creates additional growth opportunities for CDMO companies such as Siegfried.

Financial Performance and Capital Intensity

In addition to strategic topics, the discussion also covered the company’s capital expenditure (Capex), free cash flow and debt financing. Expanding and modernising production capacity requires substantial financial resources. It is therefore crucial that these investments translate into higher capacity utilisation, improved margins and stronger cash flow generation over the medium term.

Quelle: Siegfried Geschäftsbericht 2025, «Core Results» / Non-GAAP Kennzahlen

The figures highlight Siegfried’s significant investment activity. Despite strong operating performance and an improved EBITDA margin, free cash flow was slightly negative in the 2025 financial year due to substantial capital expenditure. The accounting treatment and financing of growth investments therefore remain important factors in the company’s future development.

Tour of Production and Warehouse Facilities

Following the presentation, we had the opportunity to gain first-hand insights into Siegfried’s operations during a guided tour of its production and warehouse facilities. The tour provided a clear impression of the complexity of pharmaceutical manufacturing and the stringent requirements involved in the industrial production of active pharmaceutical ingredients and finished medicines. In particular, it highlighted the importance of reliable production infrastructure and well-organised logistics within the pharmaceutical value chain.

Valuation and Outlook

Siegfried operates in a structurally attractive market environment. The increasing outsourcing of development and manufacturing activities by pharmaceutical companies, the growing importance of smaller biotechnology firms and the regionalisation of supply chains are expected to support long-term demand for specialised CDMO services.

At the same time, the business model remains capital-intensive. Significant investments in new production capacity can weigh on free cash flow in the short term. Consequently, capacity utilisation across existing and newly established facilities, profitability and the development of debt levels will be particularly important factors for the company’s future performance.

With an EBITDA margin of approximately 23.5% in the 2025 financial year, Siegfried demonstrates solid operating profitability. If the company succeeds in translating its investments into additional profitable growth, this should also have a positive impact on cash flow generation over the medium term.

Our company visit concluded with an apéro riche, providing an opportunity for personal conversations and further exchanges in a pleasant and relaxed atmosphere.