Catalent ($CTLT) watched as some unfavorable currency trends sapped its fiscal year revenue growth, but the company closed out its transformational year with a major increase in profits that management said is a sign of things to come.
The drugmaker's fiscal 2015 revenue totaled $1.8 billion, flat compared to the prior year but representing a 7% increase when controlling for the strong dollar. Catalent's banner oral technologies business slipped 3% to $1.1 billion on the year, while its development segment grew 6% to $438.8 million and its delivery solutions unit rose 6% to $261.9 million.
Despite the stagnant revenue, however, Catalent increased its net earnings more than 13-fold in fiscal 2015, banking $212.2 million in a swing due both to the payment of some deferred taxes and debt reductions tied to the company's 2014 IPO.
Now, after what CEO John Chiminski called "a milestone year in Catalent's history," the company is forecasting fiscal 2016 revenue growth of about 1.4% at midpoint, expecting as much as $1.9 billion.
"During the year, we successfully completed our initial public offering, closed three strategic acquisitions, and continued to invest in our innovative technologies and products," Chiminski said in a statement. "We believe that ongoing market consolidation and strong demand for fewer, bigger and better suppliers in our dynamic industry position us well for organic growth in 2016 and beyond."
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