Eurobio Scientific: EXCEPTIONAL 2020 RESULTS
EXCEPTIONAL 2020 RESULTS
-
Net income : € 73.5m
(x23)
-
Consolidation of a new dimension for the
Group
Paris, April 29, 2021 5:45 pm
Eurobio Scientific
(FR0013240934, ALERS, PEA-PME eligible), a leading French
group in the field of specialty in vitro medical diagnostics,
presents today its 2020 consolidated annual results which were
established according to French accounting standards and were
approved by the company's board of directors which met on April 29,
20211.
The exceptional activity recorded
by Eurobio Scientific in 2020,
thanks to the Group's commitment to the fight against the COVID-19
epidemic combined with the continuation of organic growth in
traditional activities, is reflected in a historic level of
results. Eurobio Scientific is
thus taking a decisive step in its development and entering 2021
with a strengthened commercial position coupled with significant
financial resources. These will enable the Company to finance its
organic and external growth as well as its R&D to accelerate
the development of proprietary products. The Group confirms its
position among the French leaders in medical diagnostics and has
the means to consolidate the new dimension acquired in
2020.
in M€ |
2020consolidated |
2019 consolidated |
Variation |
IVD product
sales |
188.5 |
58.9 |
+220% |
Other revenues |
0.7 |
0.6 |
+17% |
Total revenues |
189.2 |
59.5 |
+218% |
Cost of goods
sold |
(78.5) |
(39.5) |
+98.7% |
Gross margin |
110.7 |
20.0 |
x5.5 |
R&D
expenses |
(2.2) |
(1.6) |
+37.5% |
Marketing and
sales expenses |
(18.2) |
(10.9) |
+67.0% |
G&A expenses |
(6.2) |
(4.0) |
+55.0% |
EBITDA |
88.2 |
7.0 |
x12.6 |
Operating result |
84.0 |
3.4 |
x24.7 |
Financial result |
(0.4) |
0.1 |
- |
Extraordinary result |
- |
(0.5) |
- |
Goodwill
amortization |
(2.8) |
(2.8) |
- |
Taxes |
(7.4) |
3.0 |
- |
Net result |
73.5 |
3.2 |
x23.0 |
|
|
|
|
Cash |
65.6 |
7.6 |
|
Financial debt
excluding leasing |
24.9 |
15.1 |
|
Shareholders equity |
107.1 |
35.2 |
|
Exceptional level of activity in
2020
Eurobio Scientific established itself in 2020 as
a leader in medical diagnostics in France and took a central role
in screening for the SARS-Cov-2 coronavirus, very early on. The
company has thus set up, in record time, one of the most complete
catalog of products on the market, including PCR, antigen and
serological tests. The R&D team was mobilized to complete the
range of partner tests with proprietary tests under the EurobioPlex
(EBX) brand, in order to increase the available offer in an
extremely tight and globalized market. 2020 revenues from COVID-19
diagnostic tests and instruments amounted to € 117 million.
At the same time, despite the organizational
constraints linked to confinements and the strong increase in
activity on COVID products, traditional activities continued to
grow, with a 2020 turnover of € 71.5 million, up 21% compared to
2019. On a like-for-like basis2, sales excluding COVID showed
organic growth of 11%.
Historic 2020 results
The strong growth of revenues, at + 220%, was
supplemented by an increase in the gross margin rate, mainly due to
an increased share of proprietary products in the sales of COVID
products. Gross margin thus reached € 110.7 million, 5.5 times
higher than the previous year.
At the same time, expenses increased
significantly less than turnover, illustrating the capacity for
growth and adaptation of the Group’s organization. The largest
increase was in marketing and selling expenses, up 67% at € 18.2
million and general and administrative expenses (+55.3% at € 6.2
million) which also include expenses related to newly acquired
subsidiaries. R&D expenses also increased (+ 37.5% at € 2.2
million) reflecting the efforts made to quickly bring new
proprietary diagnostic tests to the market. Also, taking into
account the arrival of the TECOmedical team (17 people), the
average workforce has thus increased from 122 in 2019 to 151 in
2020.
As a result, results are showing a very strong
growth, with an EBITDA of € 88.2 million (x12.6 compared to 2019)
and an operating income of € 84.0 million (x24.7).
The financial result remained close (-0.35 vs
+0.1 in 2019). It includes capital gains on transferable
securities, a lower interest charge compared to last year and a
slight exchange loss on the valuation of assets in dollars, the
euro having risen sharply during the year.
The amount of corporate income tax includes
current tax (€ 5.9 million) and the deferred tax adjustment (€ 1.5
million) largely used given the level of 2020 results.
After taking into account € 2.8 million in
goodwill amortization, 2020 net income stands at € 73.5
million, or 23 times 2019 net income.
Significantly increased financial
resources
As at December 31, 2020, the total amount of
cash or cash equivalents was € 65.6 million and shareholders'
equity was € 107.1 million. The financial debt is € 24.9 million,
made up of bank loans for € 22.1 million (including € 7.6 M from a
medium term loan corresponding to refinancing operations carried
out in Q1 2020 and € 10 M of French Government guaranteed loan
which will be fully reimbursed by mid-May 2021) and € 2.8 million
in residual, non-dilutive bond issues (following the mezzanine loan
repurchase transaction).
As a result, Eurobio Scientific has now
considerably strengthened its financial resources, which the
company will use to implement its development strategy. No dividend
will be distributed for the year 2020.
Perspectives: a new
dimension
Beyond financial performance, the exceptional
level of activity in 2020 has given Eurobio Scientific a new
dimension.
The Group gained visibility with its customers,
hospital and private biology laboratories, and demonstrated its
ability to respond to emergency needs on a national scale under
extreme conditions. Its presence with large customers is also
reinforced by the doubling of the instrument park in 2020: made
necessary by the health crisis, the expansion of the park has a
positive effect on all ranges of reagents, COVID and non-COVID,
sold by the Group.
Eurobio Scientific also has an increasingly
important international activity, under the combined effect of the
new markets conquered in the COVID context and the development of
recently acquired subsidiaries, for which commercial synergies are
just starting to be activated.Finally, the R&D team has shown
its ability to respond quickly to market needs, at the same time
increasing the share of proprietary products.
The Group intends to continue in this direction
and, on the strength of its new resources, has thus decided to
accelerate its strategy of increasing the share of its proprietary
products in its sales mix. This continuity of orientation, made
possible by the new available financial resources, goes through
several axes:
- Gradual withdrawal from low-margin
distribution activities, in order to focus activity and resources
on more profitable products;
- Withdrawal from certain
distribution activities blocking the company's ability to develop
its proprietary product lines;
- Continuation of other distribution
activities to maintain the richness and innovation of the catalog
of solutions and products offered to customers, public and private
laboratories;
- Strengthening of the R&D
capacity with the aim of continuing to innovate, in priority on
molecular biology products but also on the Dendritics antibody
range, without forgetting the pursuit of targeted historical
therapeutic programs, such as the DYRK project in partnership with
US biotech Felicitex;
- Maintaining external growth
targeting proprietary products or extension of international
presence.
The year 2021 began in this new context, in
particular with the recruitment at the beginning of February of a
new R&D Director, specialist in the development of diagnostic
tests in molecular biology, who joined Eurobio Scientific after
several years spent in the hospitals to develop real-time PCR kits.
The R&D team is also further strengthened with the arrival of 4
new researchers recruited in April 2021, including 2 doctors and 2
engineers, all specializing in molecular biology.
For traditional activities (transplantation,
infectious diseases excluding COVID, research), the company has
initiated the implementation of its strategy. Discussions have
already been started with certain suppliers currently distributed.
Thus, in the context of transplantation, Eurobio Scientific, at the
end of the exclusive distribution contract with Thermo-Fischer /
One-Lambda which was recently renewed for 18 months, will gradually
withdraw from this activity, over several years, as related public
tenders owned by the Company end. Similar discussions have been
initiated with other suppliers to allow the development of new
proprietary products. At the same time, the company continues to
strengthen its global product offering with the signing of new
exclusive partnerships such as the one with the HOB Chinese
company, for the marketing of tests in immunology, autoimmune
diseases, and allergology, indications in which the company
currently has a limited offer.
In the first months of this year, sales of
Covid-19 related PCR tests remained at a good level and should
still represent a significant share of turnover depending on the
evolution of the epidemic, in particular through new products made
available to the market.Eurobio Scientific has thus developed and
obtained the CE marking of the first French PCR test allowing the
qualification of the current variants of SARS-CoV-2.In parallel,
and with the desire to expand its markets, the company has launched
its own rapid test for the antigenic detection of Covid-19, and is
working to obtain the necessary registrations for the
commercialization of its proprietary rapid self-test.Finally,
instrument installations are continuing at the same pace in order
to meet the needs of laboratories, and allow the deployment of a
mixed offer of proprietary and distribution products.
During an exceptional year 2020, Eurobio
Scientific secured the means to accelerate its transformation,
thanks, among other things, to the strong growth of its cash
balance which continued during the first quarter of 2021. The
company will thus be able to strengthen its proprietary offer,
mainly in molecular biology, and implement increased selectivity of
distribution partners. This strategy, combined with targeted
acquisitions, should enable the Group to expand its international
presence, particularly in Europe where it is already operating in
several key countries.
Next financial meetingAnnual
shareholders meeting: June: 17, 2021
DisclaimerThis press release
contains elements that are not historical facts including, without
limitation, certain statements about future expectations and other
forward-looking statements. Such statements are based on
management’s current views and assumptions and involve known and
unknown risks and uncertainties that could cause actual results,
profitability or events to differ materially from those
anticipated. In addition, Eurobio Scientific, its shareholders, and
its affiliates, directors, officers, advisors and employees have
not verified the accuracy of, and make no representations or
warranties in relation to, statistical data or predictions
contained in this press release that were taken or derived from
third party sources or industry publications. Such statistical data
and predictions are used in this press release for information
purposes only. Finally, this press release may be drafted in the
French and English languages. If both versions are interpreted
differently, the French language version shall prevail.
About Eurobio
Scientific
Eurobio 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 has
approximately 164 employees and three production units based in the
Paris region, in Germany and in the United States, and several
affiliates based in Dorking UK, Sissach Switzerland, Bünde Germany
and Utrecht in The Netherlands. For more information, please visit
: www.eurobio-scientific.com The 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 |
Group Eurobio ScientificDenis Fortier, General
ManagerHervé Duchesne de Lamotte, General ManagerTel. +33(0) 1 69
79 64 80 |
CalyptusMathieu Calleux / Gregory BossonInvestors
relationsTel. +33(1) 53 65 68
68eurobio-scientific@calyptus.net |
1 The audit procedures on the consolidated accounts have been
carried out by the statutory auditors, and their certification
report will be issued after verification of the management report.2
Excluding first-half 2020 sales of Pathway diagnostics, acquired in
July 2019, and TECOmedical, acquired in July 2020.
- CP_Eurobio_Scientific_RA2020_EN
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