- Q1 2022 revenues of €1,760m, +9.1% vs. Q1 2021, despite a
significant decrease in COVID related revenues
- Q1 2022 total revenue organic growth2 of +1.1% vs. Q1 2021,
impacted by the reduction in COVID related revenues (over €300m in
Q1 2022 vs. €400m in Q1 2021)
- The Core Business (excluding COVID-19 related clinical testing
and reagent revenues) delivered revenue organic growth of +6.5% vs.
Q1 2021 in line with recently upgraded growth plans announced on 22
February 2022
- Performance delivered despite disruptions from the Omicron wave
in terms of lockdown restrictions and employee absence, in a number
of geographies during this period but supported by slight working
day advantage vs. 2021
- Eurofins Viracor and Cornell University signed an exclusive
agreement to commercialise novel assays to detect organ and tissue
damage in transplant and COVID-19 patients
- Eurofins Genomics will conduct genotyping for up to 5 million
participants of Our Future Health, the UK’s largest ever health
research programme
- Eurofins Megalab will provide clinical analyses, genomic and
pathological studies for the DIPCAN study in Spain, which aims to
develop more personalised oncological treatment through the
integration of clinical, genomic and radiological image data
- COVID-19 related clinical testing activities and reagents sales
were still very intense in January and February in response to
Omicron, with reduced volumes since then, in-line with relaxation
of national testing requirements
- Despite significant slowdown in March, the FY 2022 COVID
revenue objective of €300m, announced on 22 February 2022 was
already exceeded in Q1, hence the full year COVID revenues
objective is revised upwards to €400m. This is only a €100m (33%)
increase given decisions made by governments in many countries
where the Covid crisis is considered to be over
- Should a new significant wave or another more pathogenic
variant arise, for instance in the Fall season, or medically
prescribed COVID or multi-pathogen testing continue at significant
levels, we might need to upgrade this objective further
- In line with their plans to accelerate growth, Eurofins
businesses continue to invest significantly for the long term,
organically and inorganically
- Further expansion in the BioPharma laboratory network
worldwide
- Amongst a total of 16 acquisitions, completed strategic
acquisitions to expand our presence in Asia, with Genetic Lab Co in
Japan, Genetic Testing Service in Vietnam, and in BioPharma
services with Inpac Medizintechnik in Germany
- Direct Russia & Ukraine revenues for Eurofins companies
were under €3m in 2021
Regulatory News:
Eurofins (Paris:ERF):
Outlook
Following the significant upgrade in objectives for long-term
organic growth rates announced at the FY 2021 results presentation
on last 22nd February 2022, the financial objectives of the Group,
including M&A, are revised upwards due to the 33% upwards
revision of Covid revenues objective for FY 2022 from €300m to
€400m as follows:
€m
FY 2022
FY 2023
FY 2024
Revenues
6,325 (was 6,225) (incl. €400m
COVID revenues (was €300m))
6,550 (zero COVID revenues)
7,250 (zero COVID revenues)
Adjusted3 EBITDA5
1,525 (was 1,500)
1,575
1,725
FCFF before investment in owned
sites11
865 (was 850)
900
950
All objectives are set at average 2021 currency exchange rates,
assuming 6.5% organic growth per year on the Core Business and
including potential revenues from acquisitions of €250m in each of
2022, 2023 and 2024 consolidated at mid-year.
Comments from the CEO, Dr Gilles Martin:
“The 2022 financial year has
started well and in spite of significant Omicron-related staff
absenteeism in Q1, growth was in-line with our recently upgraded
long-term annual organic growth targets of 6.5% p.a. Despite
current global challenges, the outlook of our business remains
strong, our markets’ potential undiminished, and our ambitious,
mid-term growth plans unchanged. Given the scale and breadth of
opportunities, we plan to continue to invest significantly in IT
and in organic developments, and M&A, especially in BioPharma,
clinical genetics and Asia.”
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:
UK: + 44 330 165 4027 US: + 1 323 794 2551 FR: + 33 176 772 274
BE: + 32 240 406 59 DE: + 49 692 222 134 20 DK: + 45 351 580 49
Q1 2022 Organic Growth Calculation and Revenue
Reconciliation
In €m except otherwise stated
Q1 2021 reported revenues
1,614
+ 2021 acquisitions - revenue part not
consolidated in Q1 2021 at Q1 2021 FX rates
63
- Q1 2021 revenues of discontinued
activities / disposals10
0
= Q1 2021 pro-forma revenues (at Q1 2021
FX rates)
1,676
+ Q1 2022 FX impact on Q1 2021 pro-forma
revenues
47
= Q1 2021 pro-forma revenues (at Q1
2022 FX rates) (a)
1,723
Q1 2022 organic scope* revenues (at Q1
2022 FX rates) (b)
1,742
Q1 2022 organic growth rate
(b/a-1)
1.1%
Q1 2022 acquisitions - revenue part
consolidated in Q1 2022 at Q1 2022 FX rates
18
Q1 2022 revenues of discontinued
activities / disposals10
0
Q1 2022 reported revenues
1,760
* Organic scope consists of all companies
that were part of the Group as at 01/01/2022. This corresponds to
the 2021 pro-forma scope.
Geographical Revenue Breakdown
€m
Q1 2022
As % of total
Q1 2021
As % of total
Growth %
Europe
1,000
57%
1,000
62%
0.0%
North America
584
33%
490
30%
19.0%
Rest of the World
176
10%
123
8%
43.3%
Total
1,760
100%
1,614
100%
9.1%
Growth in Europe was significantly impacted by the reduction in
COVID related revenues in Q1 2022 vs. Q1 2021. Europe generated 57%
of Group revenues in Q1 2022.
North America delivered strong growth across all business lines
in Q1 2022, it now represents 33% of Group revenues.
Rest of the World delivered very robust growth in Q1 2022. The
proportion of revenues generated in Rest of the World continues to
increase in line with our objective to significantly expand our
presence in Asia over the coming years.
- Core Business excludes COVID-19 related clinical testing and
reagents revenues
- 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 operations10. 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.
- Adjusted results – reflect the ongoing performance of the
mature9 and recurring activities excluding “separately disclosed
items4”.
- 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 charge,
impairment of goodwill, amortisation of acquired intangible assets
and negative goodwill, loss/gain on disposal 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.
- EBITDA – Earnings before interest, taxes, depreciation and
amortisation, share-based payment charge6, impairment of goodwill,
amortisation of acquired intangible assets, negative goodwill,
loss/gain on disposal and transaction costs related to acquisitions
as well as income from reversal of such costs and from unused
amounts due for business acquisitions.
- Share-based payment charge and acquisition-related expenses,
net – Share-based payment charge, impairment of goodwill,
amortisation of acquired intangible assets, negative goodwill,
loss/gain on disposal and transaction costs related to acquisitions
as well as income from reversal of such costs and from unused
amounts due for business acquisitions.
- Net capex – Purchase of intangible assets, property, plant and
equipment, less proceeds from disposals of such assets.
- Free Cash Flow to the Firm - Net cash provided by operating
activities, less Net capex.
- Mature scope: excludes start-ups and acquisitions in
significant restructuring. A business will generally be considered
mature when: i) The Group’s systems, structure and processes have
been deployed; ii) It has been audited, accredited and qualified
and used by the relevant regulatory bodies and the targeted client
base; iii) It no longer requires above-average annual capital
expenditures, exceptional restructuring or abnormally large costs
with respect to current revenues for deploying new Group IT
systems. The list of entities classified as mature is reviewed at
the beginning of each year and is relevant for the whole year.
- 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 2021.
- 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).
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. Eurofins 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. Eurofins is also a
market leader in certain testing and laboratory services for
genomics, and in the support of clinical studies, as well as in
BioPharma Contract Development and Manufacturing. The Group also
has a rapidly developing presence in highly specialised and
molecular clinical diagnostic testing and in-vitro diagnostic
products.
With 58,000 staff across a decentralised and entrepreneurial
network of 900 laboratories in 54 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.
The Group’s objective is to provide its customers with
high-quality services, innovative solutions and accurate results on
time. Eurofins is ideally positioned to support its clients’
increasingly stringent quality and safety standards and the
increasing demands of regulatory authorities as well as the
requirements of healthcare practitioners around the world.
In 2020 and 2021, Eurofins reacted quickly to meet the global
challenge of COVID-19, by creating the capacity to help over 20
million patients monthly who may have been impacted by the pandemic
with our testing products and our services and directly supporting
healthcare professionals working on the front line to fight the
virus. The Group has established widespread PCR testing
capabilities and has carried out over 40 million tests in its own
laboratories, is supporting the development of a number of vaccines
and has established its SAFER@WORK™ testing, monitoring and
consulting programmes to help ensure safer environments, travel and
events during COVID-19.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220420006159/en/
Investor Relations Eurofins Scientific SE Phone: +32 2 766 1620
E-mail: ir@eurofins.com www.eurofins.com
Eurofins Scientific (EU:ERF)
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