Regulatory News:
Eurofins (Paris:ERF):
Eurofins commenced the year with a solid performance in Q1
2023:
- Revenues reached €1,574m, -10.5% vs Q1 2022 despite the sharp
year-on-year decrease in revenues from COVID-19 testing and
reagents (just below €10m in Q1 2023 vs over €300m in Q1 2022),
while FX had a slight positive impact (+0.9%)
- Organic revenue growth6 of 7.1% in the Core Business (excluding
COVID-19 related clinical testing and reagent revenues) was above
Eurofins’ objective of 6.5% p.a. on average for 2023 and the
mid-term:
- Solid organic growth in Europe (6.0%) led by Environment
Testing and some recovery in Food Testing in March
- Resilient demand trends in North America supported strong
organic growth (9.1%), in particular in Environment Testing, Food
Testing and Biopharma Product Testing
- Organic growth in Rest of the World (6.0%) was driven by Asia,
in particular in Japan and India
- Start-ups contributed 0.9% to organic growth in Q1 2023, with 5
new start-up laboratories and 12 blood collection points opened in
the period
- Since the start of 2023, Eurofins companies have made further
innovative and valuable contributions to Testing for Life,
including:
- DNA Diagnostics Center (DDC), a global leader in genetic
relationship and consumer testing, and part of the Eurofins network
of companies, announced the launch of PeekabooTM Click, an
exceptionally accurate (99.5%) test utilising a comfortable and
simple at-home collection device that enables expecting parents to
discover their baby's gender very early in pregnancy
- Scientists from within the Eurofins Environment Testing network
of companies in the U.S. co-authored a soon-to-be-published study
in the American Chemical Society’s Environmental Science and
Technology journal demonstrating the viability of Eurofins’ blood
self-collection tool for assessing human exposure to PFAS and
opening the door for bigger-scale PFAS exposure assessment
efforts
Objectives
- Eurofins is confirming its objectives for FY 2023 to FY 2027 as
announced at the FY 2022 results presentation on 01 March
2023:
€m
FY 2023
FY 2027
Revenues
€6.6bn – €6.7bn
Approaching €10bn
Adjusted1 EBITDA3
€1.35bn – €1.4bn
Margin: 24%
FCFF before investment in owned sites8
€700m - €750m
Approaching €1.5bn
- The objectives assume organic growth of 6.5% p.a. on average
and potential consolidated revenues from acquisitions of €250m
p.a.
- These objectives also assume exchange rates are stable vs 2022
average and zero contribution from COVID-19 testing and
reagents.
Comments from the CEO, Dr Gilles Martin:
“Thanks to the hard work of the Eurofins team and in spite of
the challenges presented by the global economy, we started the year
in a strong way and delivered organic growth exceeding our
objective. While we continue to be cautious in the current
uncertain economic climate, we remain confident in our long-term
strategy of further investing in our unique laboratory network,
innovating and improving services to our clients. In the near term,
our focus is very much on continuing our digitalisation initiatives
and implementing measures to combat the impact of inflation, in
particular aligning prices with inflation and productivity
improvements.”
Conference Call
Eurofins will hold a conference call with analysts and investors
today at 15:00 CET to discuss the results and the performance of
Eurofins, as well as its outlook, and will be followed by a
questions and answers (Q&A) session.
Click here to Join Call >> No need to dial in. From
any device, click the link above to join the conference call.
Alternatively, you may dial-in to the conference call via telephone
using one of the numbers below (full list of dial-in numbers
available here):
UK: + 44 330 165 4027 US: + 1 323 701 0225 FR: + 33 176 772 274
BE: + 32 240 406 59 DE: + 49 6966 102 480
Confirmation Code: 8377599
Table 1: Organic Growth Calculation and Revenue
Reconciliation
In €m except otherwise stated
Q1 2022 reported revenues
1,760
+ 2022 acquisitions - revenue part not
consolidated in Q1 2022 at Q1 2022 FX
53
- Q1 2022 revenues of discontinued
activities / disposals7
-22
= Q1 2022 pro-forma revenues (at Q1 2022
FX rates)
1,791
+ Q1 2023 FX impact on Q1 2022 pro-forma
revenues
16
= Q1 2022 pro-forma revenues (at Q1
2023 FX rates) (a)
1,807
Q1 2023 organic scope* revenues (at Q1
2023 FX rates) (b)
1,571
Q1 2023 organic growth rate
(b/a-1)
-13.1%
Q1 2023 acquisitions - revenue part
consolidated in Q1 2023 at Q1 2023 FX
3
Q1 2023 revenues of discontinued
activities / disposals7
0
Q1 2023 reported revenues
1,574
* Organic scope consists of all companies
that were part of the Group as at 01/01/2023. This corresponds to
2022 pro-forma scope.
Table 2: Breakdown of Revenue by Operating Segment
€m
Q1 2023
As % of total
Q1 2022
As % of total
Y-o-Y variation %
Organic growth6 in the Core
Business**
Europe
797
50.6%
1,000
56.8%
-20.3%*
+6.0%
North America
607
38.5%
584
33.2%
+4.0%
+9.1%
Rest of the World
170
10.8%
176
10.0%
-3.3%*
+6.0%
Total
1,574
100%
1,760
100%
-10.5%
+7.1%
* Segments most impacted by the sharp
decline in revenues from COVID-19 testing and reagents
** Excluding COVID-19 related clinical
testing and reagent revenues
1
Adjusted results – reflect the ongoing
performance of the mature14 and recurring activities excluding
“separately disclosed items”.
2
Separately disclosed items – include
one-off costs from integration and reorganisation, discontinued
operations, other non-recurring income and costs, temporary losses
and other costs related to network expansion, start-ups and new
acquisitions undergoing significant restructuring, share-based
payment charge5, impairment of goodwill, amortisation of acquired
intangible assets and negative goodwill, gains/losses on disposal
of businesses and transaction costs related to acquisitions as well
as income from reversal of such costs and from unused amounts due
for business acquisitions, net finance costs related to borrowing
and investing excess cash and one-off financial effects (net of
finance income), net finance costs related to hybrid capital and
the related tax effects.
3
EBITDA – Earnings before interest, taxes,
depreciation and amortisation, share-based payment charge,
acquisition-related expenses, net and gain and loss on disposal of
subsidiaries, net.
4
Net capex – Purchase of intangible assets,
property, plant and equipment, less proceeds from the disposal of
such assets and less capex trade payables change of the period.
5
Free Cash Flow to the Firm (FCFF) – Net
cash provided by operating activities, less Net capex.
6
Organic growth for a given period (Q1, Q2,
Q3, Half Year, Nine Months or Full Year) – non-IFRS measure
calculating the growth in revenues during that period between 2
successive years for the same scope of businesses using the same
exchange rates (of year Y) but excluding discontinued
operations.
For the purpose of organic growth
calculation for year Y, the relevant scope used is the scope of
businesses that have been consolidated in the Group's income
statement of the previous financial year (Y-1). Revenue
contribution from companies acquired in the course of Y-1 but not
consolidated for the full year are adjusted as if they had been
consolidated as of 1st January Y-1. All revenues from businesses
acquired since 1st January Y are excluded from the calculation.
7
Discontinued activities / disposals:
discontinued operations are a component of the Group’s Core
Business or product lines that have been disposed of or liquidated;
or a specific business unit or a branch of a business unit that has
been shut down or terminated, and is reported separately from
continued operations. For more information, please refer to Note
2.26 of the Consolidated Financial Statements for the year ended 31
December 2022.
8
FCFF before investment in owned sites:
FCFF less Net capex spent on purchase of land, buildings and
investments to purchase, build or modernise owned sites/buildings
(excludes laboratory equipment and IT).
Notes to Editors:
For more information, please visit www.eurofins.com
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. The Eurofins network of companies
believes that it is the global leader in food, environment,
pharmaceutical and cosmetic product testing and in discovery
pharmacology, forensics, advanced material sciences and agroscience
contract research services. It is also one of the market leaders in
certain testing and laboratory services for genomics, and in the
support of clinical studies, as well as in biopharma contract
development and manufacturing. It also has a rapidly developing
presence in highly specialised and molecular clinical diagnostic
testing and in-vitro diagnostic products.
With over 61,000 staff across a decentralised and
entrepreneurial network of ca. 900 laboratories in 61 countries,
Eurofins offers a portfolio of over 200,000 analytical methods to
evaluate the safety, identity, composition, authenticity, origin,
traceability and purity of a wide range of products, as well as
providing innovative clinical diagnostic testing services and
in-vitro diagnostic products.
Eurofins companies’ broad range of services are important for
the health and safety of people and our planet. The ongoing
investment to become fully digital and maintain the best network of
state-of-the-art laboratories and equipment supports our objective
to provide our customers with high-quality services, innovative
solutions and accurate results in the best possible turnaround time
(TAT). Eurofins companies are well positioned to support clients’
increasingly stringent quality and safety standards and the
increasing demands of regulatory authorities as well as the
evolving requirements of healthcare practitioners around the
world.
Eurofins has grown very strongly since its inception and its
strategy is to continue expanding its technology portfolio and its
geographic reach. Through R&D and acquisitions, the Group draws
on the latest developments in the field of biotechnology and
analytical chemistry to offer its clients unique analytical
solutions.
Shares in Eurofins Scientific are listed on the Euronext Paris
Stock Exchange (ISIN FR0014000MR3, Reuters EUFI.PA, Bloomberg ERF
FP).
Until it has been lawfully made public widely by Eurofins
through approved distribution channels, this document contains
inside information for the purpose of Regulation (EU) 596/2014 of
the European Parliament and of the Council of 16 April 2014 on
market abuse, as amended.
Important disclaimer:
This press release contains forward-looking statements and
estimates that involve risks and uncertainties. The forward-looking
statements and estimates contained herein represent the judgment of
Eurofins Scientific’s management as of the date of this release.
These forward-looking statements are not guarantees for future
performance, and the forward-looking events discussed in this
release may not occur. Eurofins Scientific disclaims any intent or
obligation to update any of these forward-looking statements and
estimates. All statements and estimates are made based on the
information available to the Company’s management as of the date of
publication, but no guarantees can be made as to their completeness
or validity.
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version on businesswire.com: https://www.businesswire.com/news/home/20230425006095/en/
Investor Relations Eurofins Scientific SE Phone: +32 2 766 1620
E-mail: ir@eurofins.com
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