(News Bulletin 247) – The specialist in active ingredients is falling back heavily on the Paris Stock Exchange, after announcing Monday evening after the close a change in its governance following the resignations of the chair of its board and its general director.

Since its IPO in May 2022 following the spin-off of the company by Sanofi, Euroapi has suffered. The specialist in active pharmaceutical ingredients is experiencing a particularly nightmarish stock market, with a share price losing more than 35% over the whole of 2024. And the results are even less flattering since its first stock market steps with a title which prices three times less than its technical IPO price, set at 12 euros.

This is because Euroapi is going through a particularly delicate period, weakened by a drop in orders from its former parent company Sanofi, which still represented more than 48% of its revenues in 2022.

The group lowered its 2024 targets in June, for the second time. Euroapi was also weighed down by the shutdown of a production site in Brindisi, in the South of Italy after the discovery of quality control failures.

“A new chapter”

So much so that this black series blew up the governance of Euroapi. Monday evening after the close of the Paris market, the group indicated that it had reshaped its staff following the resignations of Viviane Monges from her functions as administrator and chairman of the Board, as well as Ludwig de Mot who returned his apron as director. general.

Ludwig de Mot did not even last a year at Euroapi. He joined the company in January as deputy general manager, before taking over as general manager in March.

Euroapi therefore announced the appointments, “with immediate effect” of David Seignolle to the position of general director and Emmanuel Blin to the position of chairman of the board. The company says it is starting “a new chapter” with this new governance and this reshuffled management.

This game of musical chairs had previously concerned the financial department. In October, Euroapi appointed Olivier Falut to replace Evelyne Nguyen. She only lasted a few months in this position, since she succeeded Antoine Delcour last May who had held this position since 2020.

Quoted by Reuters, JP Morgan analysts judged in a note on Tuesday that these changes “are likely to be judged as disappointing” to the extent that Viviane Monges was appreciated and that the departure of Ludwig de Mot was rather expected. “here at the end of the current plan until 2027”.

These early departures actually weigh on the price of Euroapi. The action plunged 17.9% around 12 p.m. this Tuesday, accusing by far the biggest drop in the SBF120, which fell 0.64% at the same time.

Remember that Euroapi unveiled its transformation plan called “Focus-27” at the beginning of the year. This roadmap should allow the French group to improve its growth by refocusing on “high added value” market segments. This will involve rationalizing its product portfolio and its industrial footprint.

Euroapi took advantage of these announcements to confirm its 2024 objectives, as lowered in June. The French manufacturer of active ingredients still anticipates a drop of 8% to 11% in its turnover in 2024 and a “core Ebitda” margin (gross operating income restated for certain elements) of between 4% and 7%. . At the start of the year, Euroapi expected a decline in sales of between 4% and 7% and a “core” Ebitda margin of between 6% and 9%, after 9.2% in 2023.