Eurobio Scientific : Results for the First Half of 2023
RESULTS FOR THE FIRST HALF OF
2023
Solid performance of Core Business and
acceleration of strategic deployment
- First positive effects of
the GenDx acquisition completed in October 2022:
- Strong half-year sales
growth: core business up 37%
- Share of proprietary
products up at 30% of sales
- Increased
internationalization, with 35% of sales generated outside
France
- Gross margin1
maintained at a high level (46.5% vs 48.5%)
-
EBITDA1 margin at 23% in
a context of intensified R&D
- Robust financial
position
Paris, October 11, 2023 – 18:50 -
Eurobio Scientific (FR0013240934, ALERS), a leading French
group in in vitro specialty medical diagnostics and life sciences,
today announced its consolidated interim results for the first half
2023, established according to French accounting standards and
approved by the company’s board of directors which met on October
10, 20232.
Eurobio Scientific's results at June 30,
2023 reflect both the Group's refocus on its core business and the
impact of external growth, notably GenDx acquisition. The Group
records, in an inflationary background, an EBITDA margin of 23%
(compared with 12% in 2019, before the pandemic). Depreciation,
reversals and amortization of assets arising from the PPA as well
as goodwill amortization reduces operating income, but these have
no effect on the Group's cash position and are mostly
non-recurring.The sharp rise in the share of
proprietary products, the internationalization of our activities
and the implementation of synergies between the Group's various
entities should continue to fuel the virtuous dynamics underway, in
terms of both business growth and earnings.
| In €m |
June 30, 2023 |
June 30, 2022 |
|
% change |
| In vitro
diagnostics & R&D products revenues |
59.2 |
83.7 |
|
-29% |
|
Of which core business revenues |
59.2 |
43.0 |
|
+37% |
|
Operating subsidies and other revenues |
0.2 |
0.6 |
|
- |
|
Total revenues |
59.4 |
84.3 |
|
-30% |
| Cost of goods
sold |
-31.8 |
-43.4 |
|
-27% |
|
Adjusted gross margin1 |
27.5 |
40.9 |
|
-33% |
| Gross
margin |
24.0 |
40.9 |
|
|
| R&D
expenses |
-3.1 |
-1.4 |
|
+121% |
| Marketing and
sales expenses |
-7.8 |
-8.9 |
|
-12% |
|
G&A expenses |
-5.4 |
-6.3 |
|
-14% |
| Amortisation of
intangible assets acquired through business combinations |
-5.8 |
-1.0 |
|
- |
| Amortisation of
goodwill |
-1.4 |
-1.4 |
|
- |
|
Operating result |
4.1 |
22.0 |
|
- |
|
Adjusted operating result3 |
11.2 |
24.4 |
|
-54% |
|
Adjusted EBITDA1 |
13.4 |
26.0 |
|
-49% |
| Financial
result |
-1.3 |
0.4 |
|
- |
|
Extraordinary result |
0.1 |
-0.1 |
|
- |
|
Taxes |
-0.7 |
-3.1 |
|
-77% |
|
Net result |
2.2 |
19.2 |
|
- |
|
Adjusted net result3 |
9.4 |
20.6 |
|
-54% |
|
|
|
|
|
|
| |
June 30, 2023 |
Dec 31st, 2022 |
|
|
|
Cash before DID acquisition advance
(28.06.23) |
89.0 |
85.9 |
|
|
|
Financial debt excluding leasing |
101.0 |
108.0 |
|
|
|
Shareholders’ equity |
174.9 |
172.7 |
|
|
Strong growth in core activities
Eurobio Scientific recorded sales of €59.2m in
the first half of 2023 from its core business, with activities
related to the detection of COVID now not significant. Excluding
exceptional sales from the COVID business (€40.6m in H1 2022),
growth for the first half of 2023 was +37%, and +7% on a pro forma
basis.
In transplantation, the Group is successfully
pursuing its previously announced strategy of replacing its
historical distribution contract for One Lambda tests with its own
products, i.e. those of its subsidiary GenDx, whose innovative
proprietary tests are gradually replacing the distribution
products, with a very positive impact on the Group's gross
margin.
The three main effects of the acquisition of
GenDx are:
- a very
significant increase in sales generated by proprietary products,
which share reached 30% of total sales compared with 18% of core
business sales in 2022,
- a strong growth
in international sales, which will account for 35% of sales in the
first half, compared to 25% of core business sales in 2022,
and
- a gross margin1
maintained at a high level, 46.5%, in line with the previous year's
figure for the same period (48.5%), which included the exceptional
activity linked to COVID, a major contributor to profitability.
This margin is significantly higher than the 33.8% achieved by the
Group in 2019 before the start of the pandemic. Gross margin is
adjusted to exclude the non-recurring reversal of the value
identified in the purchase price allocation (PPA) and corresponding
to the inventory of products manufactured by GenDx at the time of
the acquisition and sold since.
High EBITDA1 margin of
23% against a backdrop of R&D intensification and
inflation
At 30 June 2023, operating expenses were broadly
stable at €16.3m, compared with €16.6m in the first half of 2022,
with a rise in R&D expenses offset by a fall in sales and
marketing and G&A expenses.
In line with the Group's strategy of increasing
the share of proprietary products, R&D expenditure rose to
€3.1m from €1.4m a year earlier, with the integration of GenDx's
molecular biology development activities. Thanks to this
acquisition, the Group now has a mature R&D and bioinformatics
team, renowned in the field of NGS (new generation sequencing).
Conversely, marketing and sales costs fell by
around €1m to €7.8m due to the decline in COVID business in France,
and general and administrative costs were also reduced by almost
€1m. The Group is pursuing its efforts to structure what has become
an international group, while keeping a tight rein on costs.
EBITDA reached €13.4m, giving an EBITDA margin
of 23%. By way of comparison, in 2019, before the start of the
pandemic, the Group posted EBITDA of €7m, representing 12% of
sales.
Operating profit was €4.1m, due to non-cash and
mostly non-recurrent items: reversal of the value of inventory
allocated to the PPA (€3.5m), amortization of intangible assets
arising from the PPA, mainly relating to GenDx, and amortization of
goodwill. Adjusted for their impact, operating profit reached
€11.2m.
Interest expense on the Group's borrowings,
which was kept under control thanks to the interest rate hedging
contracts put in place by the company, was partially offset by
interest generated by cash investments, resulting in net interest
expense of only €1.3m.
After a tax expense of €0.7m, net profit
amounted to €2.2m at 30 June 2023. Restated for the impact of the
mostly non -recurring items listed above, it reached €9.4m.
11.4m cash flow from operations and very
limited financial debt
Eurobio Scientific generated operating cash flow
of €11.4m in the 1st half, representing a cash conversion ratio of
85% of EBITDA.
With the advance fund transfer for the DID
acquisition, Eurobio Scientific had a cash of €89m at 30 June 2023,
with total financial debt of €101m, leading to a net financial debt
of €12m, compared with €22m at 31 December 2022.
Accelerating strategic deployment
The Group is successfully pursuing its strategy
of targeted geographic and technological expansion, with the
ambition of becoming a major international company in the specialty
diagnostics market, offering its customers a comprehensive offering
based on molecular diagnostics with its own solutions and those of
its partners.
With 30% of proprietary products and 35% of its
sales outside France in the first half of 2023, the Group's
strategic deployment is gathering pace, driven by organic growth -
which is increasingly benefiting from synergies between the Group's
different entities - and external growth. The Group remains active
in both these areas, with its entry into the Italian market in
early July 2023 through the acquisition of DID, and the purchase in
March 2023 of the GenDx product distribution business in France
from Bedia Genomics. These acquisitions will accelerate the Group's
development by continuing to roll out the distribution of its own
products internationally, and by harnessing the synergies generated
by the acquisitions already made.
Next financial meeting
2023 FY revenues: January 30, 2024, after market
closes
|
About Eurobio ScientificEurobio Scientific is a
key player in the field of specialty in vitro diagnostics. It is
involved from research to manufacturing and commercialization of
diagnostic tests in the fields of transplantation, immunology and
infectious diseases, and sells instruments and products for
research laboratories, including biotechnology and pharmaceutical
companies. Through many partnerships and a strong presence in
hospitals, Eurobio Scientific has established its own distribution
network and a portfolio of proprietary products in the molecular
biology field. The Group now has over 300 employees and four
production units based in the Paris region, in Germany, in the
Netherlands and in the United States, and several affiliates based
in Dorking UK, Sissach Switzerland, Bünde Germany, Antwerp Belgium,
Utrecht in The Netherlands and Milan in Italy.Eurobio Scientific's
reference shareholder is the EurobioNext holding company which
brings together its two directors, Jean-Michel Carle and Denis
Fortier, alongside the "Pépites et Territoires" by AXA &
NextStage AM investment program, managed by NextStage AM. For more
information, please visit: www.eurobio-scientific.comThe company is
publicly listed on the Euronext Growth market in ParisEuronext
Growth BPI Innovation, PEA-PME 150 and Next Biotech indices,
Euronext European Rising Tech label.Symbol: ALERS - ISIN Code:
FR0013240934 - Reuters: ALERS.PA - Bloomberg: ALERS:FP |
|
Contacts |
|
Groupe Eurobio ScientificDenis Fortier, Chairman
and CEOAnne-Sophie Hérelle, Deputy CEO Finance & ITTel. +33(0)
1 69 79 64 80 |
CalyptusMathieu CalleuxInvestors RelationsTel.
+33(1) 53 65 68 68 - eurobio-scientific@calyptus.net |
1 Adjusted for the reversal of the value of inventory (€3.5m)
allocated to the PPA related to GenDx acquisition and sold since
then - non-recurring
2 The auditing procedures of the accounts by the
statutory auditors are still in progress.3 Adjusted (i) for the
non-recurring reversal of the value of inventory (€3.5m) allocated
to the PPA related to GenDx acquisition and sold since then, (ii)
the amortization of intangible assets allocated to the PPA and
(iii) goodwill amortization
- 231011CP_Eurobio_Scientific_RS2023_ENvFdef
Grafico Azioni Eurobio Scientific (EU:ALERS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Eurobio Scientific (EU:ALERS)
Storico
Da Nov 2023 a Nov 2024
