First-half 2023
revenue
Acceleration of activity
- Half-year revenue: €378.6 million, up +2.8% at CER1, with
a strong acceleration of activity in Q2, at +6.7%
- Very dynamic sales in Asia (+16.6% in H1 at CER) and EMEA
(+7.8%), but down in the Americas (-15.3%), as expected
Financial objectives
confirmed
- 2023 revenue growth of more than 5% on a like-for-like basis
and at CER
- Restated EBITDA margin rate2: around 11% in 2023, before a
return in 2024 to a higher level than in 2021 (14.4%)
Group debt refinancing signed on July
18th, 2023
Villepinte, July 20,
2023: Guerbet (FR0000032526 GBT), a
global specialist in contrast agents and solutions for medical
imaging, is reporting its revenue for the first half of 2023. As of
June 30, the Group’s sales totalled €378.6 million, up +2%
from the first half of 2022 (€371.1 million). This growth in
its activity includes an unfavourable exchange rate effect of
€2.9 million. At constant exchange rates (CER), the Group’s
revenue in the first half of 2023 was 2.8% higher than in the same
period in 2022.
After a slight decline in Q1 of the current
fiscal year (-1.3%), Guerbet’s activity at CER rose +6.7% in Q2.
This acceleration, perfectly in line with the Group’s expectations,
confirms its financial objectives for the entire current fiscal
year and the next.
Geographical distribution of
consolidated group revenue (IFRS)
In millions of euros, at June 30, 2023 |
H1 2022 |
H1 2023 at current exchange
rates |
Change (%) |
H1 2023 at constant exchange
rates1 |
Change (%) |
Sales in EMEA |
165.6 |
178.5 |
+7.8% |
178.5 |
+7.8% |
Sales in Asia |
90.9 |
101.5 |
+11.6% |
106.1 |
+16.6% |
Sales in Americas |
114.5 |
98.6 |
-13.9% |
97.0 |
-15.3% |
Total |
371.1 |
378.6 |
+2.0% |
381.5 |
+2.8% |
[1] Constant exchange rates: the exchange rate
impact was eliminated by recalculating sales for the period on the
basis of the exchange rates used for the previous fiscal year.
Activity in the EMEA region
increased +7.8% at current exchange rates and at CER for the first
half of the year overall. This reflects a steady rise in volumes,
combined with positive price effects and accelerating since the
beginning of the year.
In Asia, the sharp increase in
revenue in the first half of the year (+11.6%) is even more
remarkable given that it incorporates a negative exchange rate
effect in connection with the decline of the yuan and the yen over
the period. At CER, growth in Asia reached +16.6% thanks to strong
acceleration in Q2 (+30.1%), driven by Japan and especially China,
where the implementation of direct distribution just a year ago
continues to pay off.
In the Americas region, sales
were down -15.3% at CER. In line with the Group’s expectations,
this reflects in part the optimization of the customer portfolio
and the production adjustments associated with the launch of
EluciremTM. Sales of this product will not have a significant
impact until the second half of 2023. In addition, production
standardization at the Raleigh plant (North Carolina) has not yet
had its full effect on invoicing.
Distribution of consolidated group
revenue by activity (IFRS)
In millions of euros, at June 30, 2023 |
H1 2022 |
H1 2023 at current exchange
rates |
Change (%) |
H1 2023 at constant exchange
rates1 |
Change (%) |
Diagnostic Imaging |
328.1 |
336.5 |
+2.5% |
339.0 |
+3.3% |
MRI |
121.3 |
125.0 |
+3.1% |
125.2 |
+3.2% |
X-Ray |
206.8 |
211.4 |
+2.2% |
213.9 |
+3.4% |
Interventional Imaging |
43.0 |
42.2 |
-1.9% |
42.5 |
-1.1% |
Total |
371.1 |
378.6 |
+2.0% |
381.5 |
+2.8% |
[1] Constant exchange rates: the exchange rate
impact was eliminated by recalculating sales for the period on the
basis of the exchange rates used for the previous fiscal year.
Diagnostic Imaging revenue in
the first half of 2023 increased 3.3% at CER (+2.5% at current
exchange rates). It should be noted that X-ray revenue now includes
the revenue of the company Intrasense, consolidated as of January
2023.
- In MRI, the 3.2% growth at CER was marked by
an acceleration in Q2 (+5.6%); initial sales of EluciremTM were in
line with the Group’s expectations with an acceleration during the
second half of the year.
- X-ray revenue rose 3.4% at CER. This is the
result of a very significant increase in sales of Xenetix® and a
decrease in Optiray® volumes in connection with production
adjustments at the Raleigh plant in the first half of the
year.
In Interventional Imaging,
sales at CER were down -1.1% from the first half of 2022 as a
result of a base effect in the Asia-Pacific region but were up over
Q2 2023 alone at +1.4%. For the year overall, the segment is set
for robust growth.
Acquisition of a 56.5% stake in
Intrasense
In the first half of 2023, the Group reached an
important milestone in its Artificial Intelligence (AI) roadmap.
Following its acquisition of a stake in Intrasense in January and
the success of the voluntary takeover bid that closed on June 5,
Guerbet became the majority shareholder of Intrasense with 56.5% of
the capital (press release of June 8, 2023).
Intrasense (€3.8 million in revenue in
2022) joined the Group to accelerate its strategy for marketing AI
technologies from third parties. The non-exclusive licensing
agreement between the two companies provides for the integration of
algorithms developed by Guerbet in the detection of liver and bone
lesions and prostate and pancreatic cancers into Intrasense
solutions (Myrian® platform). Together, Guerbet and Intrasense aim
to position themselves as a major player in AI applied to medical
imaging in oncology.
Confirmation of financial objectives for
2023 and 2024
Guerbet is entering the second half of 2023 with
confidence. The acceleration of positive price effects observed
since the beginning of the year, reflecting the Group’s pricing
power in the face of inflationary pressures (especially on iodine),
is expected to continue. At the same time, activity should benefit
from the gradual rise in sales of EluciremTM, as well as a strong
rebound in commercial activity in the Americas, in connection with
the production standardization at the Raleigh plant compared with
the end of 2021. Overall, and as indicated in the reporting of
full-year results in March, revenue growth in the second half of
2023 is expected to be stronger than in the first half.
For the entire fiscal year, Guerbet confirms
that it is targeting sales growth of more than 5% on a
like-for-like basis and at CER. In terms of profitability, the
Group still expects EBITDA margin/revenue (restated)2 to be around
11% before returning to a higher level in 2024 than in 2021
(14.4%).
Refinancing of the Group’s
debt
On July 18, 2023, Guerbet signed a
€350 million credit agreement, including an undrawn
€100 million revolving credit facility, to refinance its
existing debt. This five-year agreement, with an option of a
two-year extension (“5 years+1+1”) for the revolving facility, was
signed with a group of eight banking partners. It replaces the
existing credit agreement expiring in March 2024.
In addition, in order to contribute to its
development and diversify its sources of financing, Guerbet
announces the signing of agreements for the issue of
€50 million in EuroPP bonds over a period of six and a half
years and the issue of €50 million in Relance bonds
(Obligation Relance) over eight years.
This financing extends the average maturity of
the Group’s debt and provides for the possibility of indexing the
margin to the performance of the Group’s existing ESG
indicators.
These deals are expected to be finalized by the
end of July 2023.
Upcoming events:
Reporting of first-half resultsSeptember
20, 2023, after trading
About Guerbet
At Guerbet, we build lasting relationships so
that we enable people to live better. That is our purpose. We are a
world leader in medical imaging, offering a complete range of
pharmaceutical products, medical devices, and digital and AI
solutions for diagnostic and interventional imaging. Pioneers in
contrast products for 95 years, with more than 2,830 employees
worldwide, we are constantly innovating and devote 8% to 10% of our
revenue to research and development in five centers in France,
Israel, and the United States. Guerbet (GBT) is listed on Euronext
Paris (segment B – mid caps) and generated €753 million in
revenue in 2022. For more information, 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, and 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 4.9 “Risk factors” of the
Group’s Universal Registration Document filed with the AMF (French
financial markets authority) under number D.23-0203 on March
31, 2023, available on the Group’s website (www.guerbet.com).
1 Constant exchange rates: the exchange rate impact was
eliminated by recalculating sales for the period on the basis of
the exchange rates used for the previous fiscal year.
2 Excluding extraordinary costs relating to optimization of the
operational structure and changes in the sales model.
2 Excluding extraordinary costs relating to optimization of the
operational structure and changes in the sales model.
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 |
- 2023 07 20 - GUERBET - First Half 2023 revenue
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