May I now hand you over to Claudia Nickolaus, Head of Investor and Public Relations and ESG Communications at Medios?
Welcome, everybody, to our Earnings Call for the First Quarter of 2025. As always, all relevant documents can be downloaded from our Investor Relations website. Additionally, this presentation can be followed in parallel via the internet link provided to you in the invitation. Today, with me is our CEO, Matthias Gärtner, and our CFO, Falk Neukirch. Matthias will start with an executive summary, followed by Falk, who will then provide details on the financials of the first quarter and the guidance for 2025. Finally, Matthias will comment on a few items of Medios' forthcoming AGM on May 27, and after the presentations, we will begin the Q&A session. I would now like to hand over to Matthias.
Thank you, Claudia. Ladies and gentlemen, welcome to our conference call for the first quarter of 2025. Let me start with the latest news, published just yesterday evening. As stated in the announcements, I have decided to step down as CEO and not stand for another term of office. As agreed with the Supervisory Board, I will take care of the handover to a successor for a smooth transition and will remain in office until December 31, 2025, at the latest. Also, Mi-Young Miehler , our CEO, has decided not to extend her contract and will leave on June 30 this year. I'm very proud of the great development of Medios that I was part of over the past 10 years.
Medios has developed from a startup into the market leader in specialty pharma in Germany and to one of the leading players in Europe with an accepted EUR 2 billion in sales in 2025. I'm equally proud that we have built a highly competent international management team of 40 people. That gives me great confidence and optimism for Medios' future and further sustainable growth. Now that this development and establishment phase has been completed, it is a logical time to place management responsibility for the next development cycle in new hands. I have known many of you for many years and look back on a great time and very good cooperation and conversation. Without you, the growth of Medios would not have been possible. You, as our investors and analysts, have also significantly contributed to the growth and success of Medios. I would like to express my sincere thanks for this.
Back to Medios' first quarter development. On slide 3, starting with an overview of the highlights and achievements for 2021-2025. Overall, we had a successful quarter with a significant improvement in profitability. Revenue grew by 6.2% to almost EUR 485 million and was driven by the international business segment. EBITDA increased disproportionately by more than 50% to EUR 23.1 million. All three operational segments contributed to this strong EBITDA increase, including an organic EBITDA growth of 4.6%. International business, reflecting the Ceban acquisition, contributed significantly to the good business performance. Consequently, we substantially improved our EBITDA margin from 3.3% for the first quarter 2024 to 4.8% for the first quarter 2025. Furthermore, earnings per share increased by almost 50% in the first quarter to EUR 0.25.
The decrease in the operational cash flow compared to the first quarter of 2024 is due to changes in net working capital as of the reporting date. On the basis of these results, we fully confirm our guidance for the year 2025. Falk will provide more insights on the financials later. We have also made progress in implementing our strategy. With the acquisition of Ceban, we created the European Specialty Pharma Platform. The integration steps are close to being fully implemented. We will now shift our focus more and more towards commercial and business development opportunities, utilizing the strong and leading platforms of both Medios and Ceban . At the same time, Ceban is also finalizing several standalone strategic and integration projects. These originate from acquisitions Ceban made before joining Medios in June 2024.
The teams of both Ceban and Medios have dedicated significant efforts to delivering these projects and the integration in Medios, all while continuing to manage day-to-day business operations effectively. Having already realized the first synergies in the first quarter, we look forward to fully unlocking the synergies between the two companies. This process is strongly supported by our European platform, giving us a leading position in the specialty pharma compounding in Europe. This network is an excellent basis for our further international expansion, the realization of synergies and cross-selling opportunities. Furthermore, it will support the development of our activities in the field of advanced therapies, the future of individualized medicine. Now, some further comments on the financials for the first quarter of 2025. Slide 4 shows the quarter-on-quarter development of our two KPIs: revenue and EBITDA pre.
In Q1 2025, EBITDA pre and the respective margin grew significantly compared to last year. We reached an EBITDA pre margin of 4.8%. This was driven by positive momentum from all operating segments and our strategic focus on higher margin products. As a result, we have already achieved the margin that we are targeting for the full year 2025. This positive development is also reflected on slide 5, illustrating the revenue and disproportionate EBITDA pre growth. Whereas revenue increased by 6.2%, EBITDA pre increased strongly by 52.9%, with the corresponding margin of 4.8% compared to 3.3% first quarter last year. This is fully in line with our strategy to focus on higher margin products to achieve an overall margin improvement. This is all from my side for the moment.
I now hand over to Falk to provide more details on the financials for the first quarter 2025 and the guidance for 2025.
Thank you, Matthias. Also, warm welcome from my side. I will give you a more detailed overview of the financials for the first quarter 2025. You can, of course, find the full financial statement on our website. Let's go to slide 7. We started the financial year 2025 with a strong first quarter, significantly influenced by the inorganic growth contribution of segment international business and the organic growth of the other operational segments, PS and PST. As a result, overall profitability increased clearly. Revenues rose by 6.2% to EUR 484.7 million, mainly driven by the operational segment international business. Gross profit of Medios group increased to EUR 49.8 million with a gross profit margin of 10.3% compared to 6.1% in the previous year.
The rise in gross profit was mainly contributed by the IB segment with a gross profit of EUR 19.3 million, containing an extraordinary profit of EUR 1.4 million from the development of a pharmacy in Netherlands. Gross profit of the PST segment rose by EUR 1.6 million and reached a gross profit margin of 23.5% compared to 21% in the previous year period. This was caused by the elimination of performance-based payments for compounding orders, but also a better product mix. The gross profit of PS segment increased despite lower revenues by plus EUR 1.2 million, reaching a gross profit margin of 3.8% compared to 3.4% in the previous year period, reflecting the focus on revenues with higher margins. The increase in personnel costs by minus EUR 8.6 million to minus EUR 17.2 million mainly results from the consolidation of Ceban , contributing minus EUR 8 million.
Other operating expenses rose from minus EUR 7.3 million to minus EUR 10.8 million and an increase of minus EUR 3.5 million also attributed to Ceban . The EBITDA pre of EUR 23.1 million compared to EUR 15.1 million in the previous year and the increase of the EBITDA pre margin to 4.8% were supported by the EBITDA contribution of segment IB plus our successful efforts to improve the margins also in the other operational segments by focusing on higher margin products and cost containment. EBITDA pre was adjusted by extraordinary expenses in the amount of EUR 1.3 million compared to EUR 3.3 million last year. This consists of EUR 1.1 million for ERP system implementation, EUR 4.2 million expenses for stock options, EUR 9,000 for M&A. In Q1 2025, there were no more performance-based payments for increased compounding volumes as in 2023 and 2024, which had a positive impact on profitability, especially in the PST segment, as already explained.
Depreciation and amortization rose by minus EUR 4.3 million to minus EUR 9.5 million. The increase is fully attributable to the Ceban acquisition of the total amount for depreciation and amortization in Q1 2025, or minus EUR 6.1 million attributable to the amortization of customer base, minus EUR 1.4 million attributable to lease assets, and the remaining amount of almost minus EUR 2 million belongs to operational depreciation. The financial result of minus EUR 2.9 million decreased by minus EUR 2.2 million and mainly includes interest expenses for the tranches utilized from the facilities of the existing syndicated loan, which amounted to EUR 184 million at the end of the reporting period. Because of the strong performance of all operational segments plus the described reduction in extraordinary expenses, net earnings increased by 60% to EUR 6.4 million, considering a tax ratio of 31.8%. Thus, earnings per share for first quarter 2025 increased from EUR 4.17 to EUR 4.25, an increase of 47.1%.
Due to the reporting date-related net working capital effects, the strong operational performance of the first quarter 2025 is not fully reflected in the operating cash flow of EUR 3.6 million. The free cash flow of EUR 2.3 million is consequently also impacted by these net working capital effects. Investing cash flow of plus EUR 0.4 million reflects CapEx of minus EUR 1.2 million and subsequent acquire purchase price payments for the acquisition of Ceban of minus EUR 1.5 million, as well as cash inflows of EUR 3 million from disposals of fixed assets and the sale of a pharmacy in the Netherlands. Financing cash flow of minus EUR 21 million in the first quarter 2025 reflects the redemption of the syndicated loan in the amount of minus EUR 16.3 million, thereof minus EUR 6.25 million for the term loan and minus EUR 10 million for the RCF.
Interest payments of minus EUR 3.4 million, mainly for the syndicated loan facilities and redemption of lease liabilities in the amount of minus EUR 1.3 million. Cash and cash equivalents of EUR 89.2 million by the end of the reporting period consisted mainly of freely available bank deposits. The equity ratio increased from 54.6% at the end of December 2024 to now 55.6%. On slide 8 and 9, we provide a breakdown of the organic and inorganic growth by segment for the first quarter 2025. Slide 8 shows that inorganic revenue growth amounted to EUR 39.5 million or + 8.7% fully dedicated to the segment international business. Organic revenue decreased by EUR 11.1 million or - 2.4%, mainly caused by focusing on higher margin revenues in segment pharmaceutical supply. Slide 9 shows the organic and inorganic EBITDA breakdown by segment for the first quarter 2025.
EBITDA pre increased inorganically by EUR 7.3 million or 48.3%, fully dedicated to segment international business. Also, both pharmaceutical supply and patient-specific therapies show organic earnings growth. The EBITDA pre development in segment services reflects the increased number of executive board members, but also sought for structural expansion of the new strategic segment advanced therapies. Let's go to slide 10, providing an overview of the segments. A 6.2% increase in group revenue is mainly driven by international business and to a lower extent by PST. The external revenue of the PS segment decreased by 2.9% to around EUR 389.2 million. This was mainly a result of replacing products with lower margins by products with higher margins. External revenue generated by the PST segment increased by 1.3% to EUR 55.8 million. The IB segment contributed EUR 39.5 million external revenue inorganically in first quarter 2025.
EBITDA pre for the PS segment amounted to EUR 11.8 million, a plus of EUR 0.8 million or plus 7%. EBITDA pre for the PST segment increased by around EUR 0.4 million to EUR 6.3 million or plus of 6.4%. IB contributed with a strong EBITDA pre of EUR 7.3 million for the first quarter 2025 and a margin of 18.4%. Slide 11 provides status information on debt financing. We bridge financed the main part of the cash component of the Ceban acquisition by a bridge facility of EUR 200 million and replaced the bridge facility by a syndicated loan facility in the total amount of EUR 225 million consisting of two tranches in November 2024. A term loan facility of EUR 125 million with a term of five years. Repayment started in March 2025 with a repayment of EUR 6.25 million and a revolving credit facility of EUR 100 million also with a term of five years.
The RCF has a term extension option of up to two years and a step-up option for further EUR 50 million to finance future growth. Based on estimated future cash flows, an amount of EUR 30 million-EUR 40 million annually would be available for repayment of the debt. At the end of the reporting period, the total loan amount drawn under the syndicated loan agreement amounts to EUR 184 million, EUR 190 million under the term facility, and EUR 65 million under the RCF facility. Overall, we are confident about the business development over the next months and confirm our guidance for the full year 2025. The guidance includes Ceban for 12 months as shown on slide 13. Our guidance parameters are revenue and EBITDA pre. For 2025, we expect revenues to reach approximately EUR 2 billion, reflecting growth of around 6%. EBITDA pre is expected to grow by around 21.5% to around EUR 96 million.
Organic growth should be in the mid-single-digit percentage range. Both parameters reflect an EBITDA pre margin of approximately 4.8%. The EBITDA pre guidance is adjusted for extraordinary expenses like M&A-related cost expenses for stock options and implementation costs for an ERP system. This is all from my side. I hand back to Matthias, who will comment on selected items of our AGM.
Thank you, Falk. Please allow me to say a few words on the upcoming AGM, which will take place on May 27. The AGM invitation was published on April 14, jointly with the respective documents. In advance, we would like to explain selected items on this year's agenda, namely agenda items 7 to 9. Let's start with the agenda item 7, adjusted compensation system for the executive board. The Supervisory Board has revised the remuneration system for the executive board and further developed the short-term incentives in a targeted manner. In future, operating cash flow will replace the previous target figure of inorganic growth, M&A, a step that aligns the incentive structure of executive board remuneration more closely with predictable operational performance indicators.
Together with the greater weighting of EBITDA pre growth and margin from previously 20% up to now 30%, the remuneration system has thus been aligned with the Medios group strategy. Slide 15 shows the revised allocation. The increased weight for EBITDA-related metrics underscores our focus on profitability and operational efficiency. Revenue remains relevant but is now complemented by quality and margin driven indicators. Replacing M&A with a cash flow metric reflects our evolution from growth primarily driven by acquisitions to disciplined cash-generating operations. We are confident that this updated STI framework better supports sustainable corporate performance while also reflecting investor expectations. Item 8 is presented on slide 16 and describes the new Stock Option Plan 2025 and the creation of respective Conditional Capital 2025/II .
The executive board and supervisory board propose the introduction of a new 2025 stock option plan to retain qualified employees and executive ratios in the long term and give them a sustainable share in the company's success and, of course, to attract new talents. Up to almost 900,000 new shares from a newly created Conditional Capital 2025/I are to be made available for this purpose. The performance target for exercising the options is a share price of EUR 17 with an exercise price of EUR 15. Please note that the total cap for stock option programs remains limited to a maximum of 10% of share capital. A clear commitment to discipline and responsibility in the use of capital measures. Finally, I want to comment on AGM item 9, new authorization to issue convertible bonds with the option of excluding subscription rights outlined on slide 17.
For this purpose, new Conditional Capital 2025/II is to be created, corresponding to around 10% of the current share capital. This measure serves the purpose of making targeted use of financing opportunities on the capital markets, for example, to support investments and acquisitions or to internationalize our business model. Here too, we are committed to a shareholder-friendly approach. With the proposed offsetting against the Authorized Capital 2024/I , we are ensuring that no more than 10% of new shares can be issued from capital measures with the exception of subscription rights, regardless of whether new shares are created through the utilization of authorized capital or from convertible instruments. Kindly note that this agenda item has already been proposed for resolution at last year's AGM. We would be delighted if you would approve the proposed agenda items.
If you have any questions in advance of our AGM, please do not hesitate to contact us. Thank you for your attention. Falk and I are now available to answer your questions.