Revenue at September 30,
2020
Activity at constant exchange rates in line with
the end-2020 objectives
-
-
- -9.1% at constant exchange rates (CER)* at
€548.3 million
- -11.2% at current exchange rates at €536.0 million
Gradual upturn in activity in the third quarter,
particularly in Asia and Europe
Villepinte, October 22, 2020 –
Guerbet (FR0000032526), a global specialist in contrast agents and
solutions for medical imaging, has announced its revenue for the
first nine months of its 2020 financial year.
At September 30, 2020, reported revenue was
€536.0 million, an 11.2% decrease from the same period last
year, including a significant negative forex impact of
€12.3 million. Revenue at constant exchange rates (CER)
totaled €548.3 million over the first nine months. This figure
is consistent with the Group’s expectations, down
9.1%.
Consolidated Group revenue
(IFRS)
In
millions of euros,at September 30, 2020 |
Change
(%) |
2020at current exchange
rates |
Change
(%) |
2020at constant exchange
rates* |
Reported 2019 |
Sales in Europe |
-16.6% |
212.7 |
-16.4% |
213.2 |
255.0 |
Sales in Other Markets |
-7.2% |
323.3 |
-3.8% |
335.1 |
348.5 |
Total |
-11.2% |
536.0 |
-9.1% |
548.3 |
603.5 |
After a second quarter down 17.8% from 2019,
revenue at constant exchange rates for the third quarter totaled
€181.3 million, down 10.7%, reflecting an upturn in activity.
The negative forex impact over the quarter was
€8.9 million.
In
millions of euros,July 1 to September 30, 2020 |
Change
(%) |
Q3 2020at current exchange
rates |
Change
(%) |
Q3 2020at constant exchange
rates* |
Reported Q3 2019 |
Sales in Europe |
-6.5% |
73.8 |
-5.7% |
74.5 |
79.0 |
Sales in Other Markets |
-20.5% |
98.6 |
-13.8% |
106.8 |
123.9 |
Total |
-15.1% |
172.4 |
-10.7% |
181.3 |
202.9 |
Gradual upturn in activity during third
quarter in line with expectation
As previously reported, the postponement of
non-essential radiological examinations and procedures by
radiologists, combined with spontaneous cancellations by some
patients and reduced performance in services due to the increase in
longer disinfection and protection measures due to COVID-19,
continue to affect MRI activity and, to a lesser extent, CT/Cath
Lab activity. Although still erratic, the upturn in activity is at
hand.
In Asia, activity remains strong, with volumes
rising steadily. Cumulative revenue at constant exchange rates
increased by nearly 10%.
In Europe, the Group’s activity improved
significantly during the third quarter with revenue down only 6.5%
and stable volumes over the period. As a reminder, sales in Europe
for the first half of the year were down 21.1%. At September 30,
cumulative revenue at current exchange rates was
€212.7 million (-16.6%).
In the Americas, sales at CER during third
quarter were down more than 20%. This decrease is explained by a
negative volume effect for the region resulting from the decline in
activity due to the health crisis, particularly in Latin America,
as well as the shutdown of the subcontracting activity following
the sale of the Montreal plant in Canada in July 2020. Excluding
the subcontracting effect, the decrease in North America was
slightly less than 15% at CER. The Group also incurred a negative
forex effect of nearly €7.0 million over the third quarter in
the region, mainly due to exchange rate fluctuations in Brazil and
the US.
At September 30, excluding the negative forex
effect of €10.9 million, cumulative revenue at CER in the
Americas amounted to €181.4 million (-12.6% compared with the
same period last year).
An analysis of the activity over the
first nine months of the financial year shows:
Diagnostic Imaging revenue
totaled €462.5 million, compared with €533.5 million at
September 30, 2019, down 13.3% (-11.1% at CER). The main reason for
this decrease was the impact of the health crisis following the
lockdown measures in most countries.
- MRI sales decreased 18.3% (-17.2% at CER) to
€168.3 million. During third quarter activity started to pick
up, the decrease being only 14.4% at CER versus prior year.
- CT/Cath Lab revenue was down 10.6% at
€290.5 million, with volumes down across all products in the
range except Xenetix®. Revenue at CER was €300.4 million
(-7.6%) at the end of September 2020.
Interventional Imaging
continued to be driven by Lipiodol® sales. Its nine-month revenue
totaled €53.6 million, stable at +0.6% (+0.9% at CER) compared
with €53.3 million in the same period in 2019.
2020 outlook
The future of the health situation remains
uncertain, and the gradual upturn in activity is still
inconsistent. Despite these conditions, Guerbet is maintaining the
objectives reported with its half-year results.
In the coming months, the Group’s activity is
expected to be affected by the initial sales of the generic of
Dotarem® in the United States. The Group believes that the impact
will be moderate in Dotarem® with volumes and prices changes
comparable with Europe, where the generic has already been
available for more than two years. Moreover, Guerbet should
continue to benefit from the good performance of Lipiodol® and the
strength of Xenetix® and Optiray®.
Given the impact of the generic and against the
backdrop of a stabilized health crisis with normal operation of the
healthcare system, the Group expects second-half revenue to be
largely comparable with the first-half revenue, down 12% compared
with 2019 at constant exchange rates. On this basis, the Group
expects EBITDA for the 2020 financial year to be around 14% of
revenue.
Lastly, the Group is confident that it can lower
its level of structural costs for the long term with expectations
of a very favorable impact on profitability once business is back
to normal.
(*) At constant exchange rates: amounts
and rates of growth are calculated by canceling out the exchange
rate effect, which is defined as the difference between the
indicator’s value for period N, converted at the exchange rate for
period N-1, and the indicator’s value for period N-1.
Upcoming events:
Publication of 2020 annual revenue
February 11, 2021, after
trading
About
Guerbet
Guerbet is a leader in medical imaging
worldwide, offering a comprehensive range of pharmaceutical
products, medical devices, and digital and AI solutions for
diagnostic and interventional imaging to improve patient diagnosis
and treatment. A pioneer in contrast media for more than 90 years,
with more than 2,800 employees worldwide, Guerbet continuously
innovates and devotes 9% of its sales to research and development
in four centers in France, Israel, and the United States. Guerbet
(GBT) is listed on Euronext Paris (segment B – mid caps) and
generated €817 million in revenue in 2019. For more
information about Guerbet, please visit www.guerbet.com
Forward-looking statements
Certain information contained in this press
release does not reflect historical data but constitutes
forward-looking statements. These forward-looking statements are
based on estimates, forecasts, and assumptions, including but not
limited to assumptions about the current and future strategy of the
Group and the economic environment in which the Group operates.
They involve known and unknown risks, uncertainties, and other
factors that may result in a significant difference between the
Group’s actual performance and results and those presented
explicitly or implicitly by these forward-looking statements.
These forward-looking statements are valid only
as of the date of this press release, and the Group expressly
disclaims any obligation or commitment to publish an update or
revision of the forward-looking statements contained in this press
release to reflect changes in their underlying assumptions, events,
conditions, or circumstances. The forward-looking statements
contained in this press release are for illustrative purposes only.
Forward-looking statements and information are not guarantees of
future performance and are subject to risks and uncertainties that
are difficult to predict and are generally beyond the Group’s
control. These risks and uncertainties include but are not limited
to the uncertainties inherent in research and development, future
clinical data and analyses (including after a marketing
authorization is granted), decisions by regulatory authorities
(such as the US Food and Drug Administration or the European
Medicines Agency) regarding whether and when to approve any
application for a drug, process, or biological product filed for
any such product candidates, as well as their decisions regarding
labeling and other factors that may affect the availability or
commercial potential of such product candidates. A detailed
description of the risks and uncertainties related to the Group’s
activities can be found in Chapter 4.8 “Risk management and
risk factors” of the Group’s Universal Registration Document filed
with the French Financial Markets Authority (AMF) under
number D-20-0369 on April 28, 2020, available on the Group’s
website (www.guerbet.com).
For more information about Guerbet, please
visit www.guerbet.com
Contacts
Jérôme
EstampesChief Financial
Officer+33 (0)1 45 91 50 00 |
Financial
CommunicationsBenjamin
Lehari+33 (0)1 56 88 11 25blehari@actifin.fr PressJennifer
Jullia+33 (0)1 56 88 11 19jjullia@actifin.fr |
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