Quick Facts
- Siegfried produces and distributes pharmaceutical active ingredients, intermediate products, and finished products.
- It employs 2,407 employees and owns a state-of-the-art production network in Europe, North America, and Asia.
- Latest addition to the Obermatt Swiss Value Wikifolio
Pros
- Strong focus on sustainability, with a high share of renewable energy and significant reduction of CO2 emissions. ✔
- Strong revenue growth and attractive profitability despite challenges from inflation and the energy crisis ✔
- Strategic expansion into new business areas ✔
Cons
- High dependence on the pharmaceutical industry ❌
- New investments pose a risk to the company ❌
- Exchange rate risks (high exposure to EUR, USD) ❌
Obermatt Ranks
 360° View | 89 |  | |
 Sentiment Rank | 94 | | |
 Value Rank | 36 |  | |
 Growth Rank | 76 | | |
 Safety Rank | 64 |  | |
 Combined Rank | 79 | |
Today, we dive into the pharmaceutical world for the Swiss Value Wikifolio. Siegfried produces and distributes pharmaceutical active ingredients, intermediate products, and finished products. Based in Zofingen, the company looks back on more than 150 years of history and has developed into a globally active partner for the pharmaceutical industry. The company has a state-of-the-art production network with locations in Europe, North America, and Asia.
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In 2023, despite challenges from inflation and the energy crisis, Siegfried delivered strong results and significant revenue growth with attractive profitability. Net sales increased by 6.3% with a net profit margin of 10.1%. This is also reflected in the Obermatt Growth Rank, where Siegfried is better positioned than 76% of all alternative stock investments. The company was in the right place at the right time during the COVID-19 pandemic. It was able to conclude a profitable contract with Biontech and Novavax, taking over the filling and packaging of the finished product. Since then, the demand for vaccines has significantly decreased, but the company was able to offset this decline in the "Drug Substances" area, demonstrating its resilience through a well-diversified product and customer portfolio.
Siegfried is currently expanding its market position with investments in existing business areas by acquiring two "Drug Products" sites from Novartis in Barcelona, a new production site in Minden (DE), and investments in new business areas with the acquisition of DINAMIQS. Siegfried is not only focused on sustainably oriented long-term revenue growth but also commits to sustainability. In the fiscal year 2023, 71% of its electricity consumption came from renewable energy sources, and carbon emissions have declined by nearly one-third in the last four years.
Despite Siegfried's remarkable achievements in 2023, challenges are also evident. Siegfried shows a high dependence on the pharmaceutical industry, which is characterized by fluctuations in research priorities and regulatory changes. Investments in new technologies and capacities, such as the acquisition of DINAMIQS, carry the risk of capital commitment and the need for rapid market integration to realize the expected growth opportunities. Furthermore, global expansion into markets with different regulatory requirements poses a complex challenge that can bind resources. Macro challenges such as inflation, the energy crisis, and currency volatilities could increase operating costs and put pressure on margins.