Regulatory News:
- The Eurofins (Paris:ERF) network of companies continues to
deliver resilient growth:
- Reported revenues in Q1 2024 totalled €1,653m, an increase of
5.0% vs Q1 2023, driven by solid organic growth but slightly
restrained by FX (-1.0%). The period also comprised nearly one less
public working day, an effect that will mostly reverse in Q2
2024.
- Adjusted for public working days in Q1 2024, organic revenue
growth7 in the Core Business (excluding COVID-19 related clinical
testing and reagent revenues) was 6.8%, ahead of objectives:
- In Europe, organic growth of 6.1% was supported by a moderate
recovery in Food and Feed Testing and continued strong demand in
Environment Testing.
- In North America, organic growth remained resilient at 7.2%,
with significant growth observed in Environment Testing and solid
growth in Food and Feed Testing as well as Consumer and Technology
Product Testing.
- In Rest of the World, strong organic growth of 8.8% was led by
strong business momentum in China, Taiwan, Australia and
India.
- Start-ups contributed 1.2% to organic growth in Q1 2024, with
11 new start-up laboratories and 5 blood collection points
established in the period.
- The pace of acquisitions was strong in Q1 2024, as Eurofins
closed 7 business combinations with FY 2023 pro-forma revenues of
over €110m.
- In Q1 2024, Eurofins companies continued contributing to the
advancement of scientific innovation through Testing for Life:
- Eurofins CDMO Alphora Inc. successfully completed its
pilot-scale biologics development facility in Mississauga,
Canada.
- Eurofins Environment Testing in Sacramento, California, in
partnership with EPA Region 10, worked with the EPA’s Office of
Water to publish Draft Method 1634, an analytical procedure to test
for 6PPD-Quinone in surface water and stormwater.
- Eurofins MET Labs, a global leader in product safety approvals
and regulatory certification, has been officially recognised by
Intuitive Machines for their crucial contribution to their IM-1
lunar mission.
Objectives
- Eurofins is confirming its objectives for FY 2024 to FY 2027 as
announced at the FY 2023 results presentation on 27 February
2024:
€m
FY 2024
FY 2027
Revenues
€7.075bn – €7.175bn
Approaching €10bn
Adjusted1 EBITDA3
€1.525bn – €1.575bn
Margin: 24%
FCFF6 before investment in owned
sites9
€800m - €840m
Approaching €1.5bn
- Eurofins targets average organic growth7 of 6.5% p.a. and
potential average revenues from acquisitions of €250m p.a. over the
5-year period (from 2023 to 2027) consolidated at mid-year.
- The FY 2024 and FY 2027 objectives assume same average exchange
rates as in FY 2023 and zero contribution from COVID-19 testing and
reagents.
Comments from the CEO, Dr Gilles Martin:
“I am proud to see that the Eurofins network of laboratories has
maintained its solid organic growth track record in Q1 2024, ahead
of our objectives. Eurofins teams continue to focus on further
implementing programmes related to digitalisation, productivity
improvement, pricing and cross-selling initiatives and the ramp up
of start-up activities. Despite a challenging geopolitical and
macro environment in parts of the world, Eurofins management
remains confident in achieving our objectives for the year.”
Conference Call
Eurofins will hold a conference call with analysts and investors
today at 15:00 CEST 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 >>
From any device, click the link above to join the conference
call.
Table 1: Organic Growth7 Calculation and Revenue
Reconciliation
In €m except otherwise stated
Q1 2023 reported revenues
1,574
+ 2023 acquisitions - revenue part not
consolidated in Q1 2023 at Q1 2023 FX
27
- Q1 2023 revenues of discontinued
activities / disposals8
-16**
= Q1 2023 pro-forma revenues (at Q1 2023
FX rates)
1,586
+ Q1 2024 FX impact on Q1 2023 pro-forma
revenues
-16
= Q1 2023 pro-forma revenues (at Q1
2024 FX rates) (a)
1,570
Q1 2024 organic scope* revenues (at Q1
2024 FX rates) (b)
1,647
Q1 2024 organic growth rate
(b/a-1)
4.9%***
Q1 2024 acquisitions - revenue part
consolidated in Q1 2024 at Q1 2024 FX
6
Q1 2024 revenues of discontinued
activities / disposals8
0
Q1 2024 reported revenues
1,653
* Organic scope consists of all companies that were part of the
Group as at 01/01/2024. This corresponds to the 2023 pro-forma
scope ** Impacted by discontinuation of the OmniGraf dual-biomarker
rejection panel following revised billing guidance by MolDX in the
U.S. effective 1 April 2023 *** Impacted by decline in COVID-19
related clinical testing and reagent revenues and not adjusted for
public working days (nearly one less day in Q1 2024)
Table 2: Breakdown of Revenue by Operating Segment
€m
Q1 2024
As % of total
Q1 2023
As % of total
Y-o-Y variation %
Organic growth7 in the Core
Business*
Organic growth7 in the Core
Business* adjusted for public working days
Europe
850
51.4%
797
50.6%
6.6%
4.1%
6.1%
North America
628
38.0%
607
38.5%
3.5%**
7.2%
7.2%
Rest of the World
175
10.6%
170
10.8%
2.5%
6.9%
8.8%
Total
1,653
100%
1,574
100%
5.0%
5.5%
6.8%
* Excluding COVID-19 related clinical testing and reagent
revenues ** Impacted by discontinuation of the OmniGraf
dual-biomarker rejection panel following revised billing guidance
by MolDX in the U.S. effective 1 April 2023
Breakdown of Revenue by Area of Activity
In Q1 2024, Life (consisting of Food and Feed Testing, Agro
Testing and Environment Testing) represented about 40% of Eurofins’
revenues while BioPharma (consisting of BioPharma Services,
Agrosciences, Genomics and Forensic Services) represented about
30%, Diagnostic Services and Products (consisting of Clinical
Diagnostics Testing and In Vitro Diagnostics (IVD) Solutions)
represented about 20% and Consumer and Technology Products Testing
(consisting of Consumer Product Testing and Advanced Material
Sciences) represented about 10%.
_______________________________________
1 Adjusted results – reflect the ongoing performance of the
mature10 and recurring activities excluding separately disclosed
items2. 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 charge4,
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 and
acquisition-related expenses4, net and gain and loss on disposal of
subsidiaries, net. 4 Share-based payment charge and
acquisition-related expenses, net – Share-based payment charge,
impairment of goodwill, amortisation of acquired intangible assets,
negative goodwill, and transaction costs related to acquisitions as
well as income from reversal of such costs and from unused amounts
due for business acquisitions. 5 Net capex – Purchase,
capitalisation of intangible assets, purchase of property, plant
and equipment less capex trade payables change of the period and
proceeds from disposals of such assets. 6 Free Cash Flow to the
Firm (FCFF) – Net cash provided by operating activities, less Net
capex5. 7 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.
Also, all revenues from discontinued activities / disposals in both
the previous financial year (Y-1) and year Y are excluded from the
calculation. 8 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
2023. 9 FCFF before investment in owned sites: FCFF6 less Net capex
spent on purchase of land, buildings and investments to purchase,
build or modernise owned sites/buildings (excludes laboratory
equipment and IT). 10 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.
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. The Eurofins Scientific S.E.
network of independent companies believes that it is a 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 ca. 62,000 staff across a decentralised and entrepreneurial
network of more than 900 laboratories in over 1,000 companies in 62
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.
The Eurofins network 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, its
companies draw on the latest developments in the field of
biotechnology and analytical chemistry to offer their clients
unique analytical solutions.
Shares in Eurofins Scientific S.E. are listed on the Euronext
Paris Stock Exchange (ISIN FR0014000MR3, Reuters EUFI.PA, Bloomberg
ERF FP).
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version on businesswire.com: https://www.businesswire.com/news/home/20240423215953/en/
For more information, please visit www.eurofins.com or
contact: Investor Relations Eurofins Scientific SE Phone: +32 2
766 1620 E-mail: ir@sc.eurofinseu.com
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