> Sales growth at constant exchange rates
> EBITDA margin in line with
announced targets
> Significant progress in
implementing the GEAR 2023 plan
Villepinte,
September 25, 2018 - Guerbet (FR0000032526
GBT), a global specialist in contrast agents and solutions for
medical imaging, has reported its consolidated half-year results,
following the limited review by its auditors.
In millions of Euros |
1st half 2017 |
1st half 2018 |
|
Revenue |
407.1 |
389.6 |
Revenue at constant exchange rates |
|
415.7 |
EBITDA* |
64.5 |
59.6 |
% of revenue |
15.80% |
15.30% |
Restated EBITDA** |
|
49.2 |
% of revenue |
|
12.60% |
Operating Income |
40.7 |
36.6 |
% of revenue |
10.00% |
9.40% |
Net Income |
23.1 |
22.4 |
% of revenue |
5.70% |
5.80% |
* EBITDA:
Operating income + net allowance for amortization, depreciation,
and provisions
** Restated EBITDA: excluding revaluation of
inventories at the beginning of the year for a value of
€10.4 M at June 30, 2018
Revenue up
slightly at constant exchange rates
Reported revenue for the first
half of 2018 totaled €389.6 M, down 4.3% due to a highly
unfavorable exchange rate effect of €26.1 M. At constant
exchange rates, the Group's revenue increased 2.1% to
€415.7 M.
At constant exchange rates, the
Diagnostic Imaging business generated
€367.9 M in the first half of the year, down 1.5% compared
with the first half of 2017. This slight decline is mainly
attributable to Optiray® on the
CT/Cath Lab segment. Conversely, MRI sales
increased. The introduction of Dotarem® generics in
Europe and certain Asian countries has been more than offset by the
market's shift from linear gadolinium-based products to
macrocycles. Dotarem® sales volumes
increased 14% with prices down 9% on average.
In Interventional
Imaging, sales were up 27.7% at €31.0 M at constant
exchange rates. This rebound should be viewed in the context of the
supply difficulties experienced during the first nine months of the
2017 financial year.
EBITDA margin in
line with forecasts
At the end of the first half of
2018, EBITDA amounted to €59.6 M, representing 15.3% of
revenue, compared with €64.5 M in the first half of 2017.
Without a particularly unfavorable exchange rate effect valued at
€18.4 M, reported EBITDA would have been up 20.9%.
However, in order to analyze operational performance, EBITDA must
be restated for the revaluation of inventories at the beginning of
the year relating to the harmonisation of the calculation of
standard production costs for €10.4 M at the end of June and
€15.6 M over the full financial year. Once restated, EBITDA
for the first half of the year would therefore be €49.2 M, or
€67.6 M excluding the exchange rate effect.
Net income remained stable at 5.8%
of revenue or €22.4 M.
Sound financial
structure
The Group's shareholders' equity
increased 6.9% to €346.4 M, compared with €324.0 M at
June 30, 2017. The Group's cash position totals €89.6 M, with
net debt increasing slightly to €329.0 M. This change is due
to the external growth operations carried out at the beginning of
the year for €31 M but also an increase in inventories, which
should decrease by the end of the year. Lastly, debt at June 30,
2018 suffered a cumulative currency effect of €14 M compared
with the same period in 2017.
Significant
progress in implementing the GEAR 2023 plan
The GEAR 2023 strategic plan,
presented on 18 April 2018, combines internal development
initiatives ("Internal Boost"), aimed at accelerating organic
growth, with external development initiatives ("External Boost")
based on acquisitions to generate additional growth and improve
margin prospects.
To carry this plan forward, the
Group implemented several initiatives in the first half of
2018:
Internal Boost:
-
The positive phase IIB results for Gadopliclenol
confirms the strong development potential of the successor to
Dotarem®;
-
In Japan, the beginning of direct distribution
in October will speed up our penetration in the world's number
2 market;
-
The marketing launch of Contrast&Care,
software offered in SaaS mode;
-
In interventional imaging, new indications
obtained for Lipiodol® in transarterial chemoembolization (C-Tace)
in several new countries.
External Boost:
-
With regard to Artificial Intelligence, the
signing of the partnership with IBM Watson Health aims to develop
and market a software solution for the diagnosis and treatment of
liver cancer;
-
Acquisition of a new microsphere technology from
Occlugel to strengthen the interventional imaging
offering;
-
510(k) obtained from the FDA in the United
States to market Accurate Medical Therapeutics microcatheters
starting in late 2018. In Europe, the CE mark is expected during
the fourth quarter for initial sales in 2019.
2018 outlook
For 2018, the Group anticipates
slightly greater revenue than in the 2017 financial year at
constant exchange rates.
Restated EBITDA at constant
exchange rates (excluding the full-year effect of revaluation of
inventories for €15.6 M) is expected to be around 15% of
revenue.
Upcoming
events:
Publication of Q3 2018
revenue
25 October 2018, after trading
Guerbet is a pioneer in the
contrast-agent field, with more than 90 years' experience, and is a
leader in medical imaging worldwide. It offers a comprehensive
range of pharmaceutical products, medical devices and services for
diagnostic and interventional imaging, to improve the diagnosis and
treatment of patients. With 8% of revenue dedicated to R&D and
more than 200 employees distributed amongst its four centers in
France, Israel, and the United States, Guerbet is a substantial
investor in research and innovation. Guerbet (GBT) is listed on
Euronext Paris (segment B - mid caps) and generated €807 million in
revenue in 2017. For more information about Guerbet, please visit
www.guerbet.com
Forward-looking
statements
Certain information contained in
this press release does not reflect historical data but constitutes
forward-looking statements. These forward-looking statements are
based on estimates, forecasts, and assumptions, including but not
limited to assumptions about the current and future strategy of the
Group and the economic environment in which the Group operates.
They involve known and unknown risks, uncertainties, and other
factors that may result in a significant difference between the
Group's actual performance and results and those presented
explicitly or implicitly by these forward-looking statements.
These forward-looking statements
are valid only as of the date of this press release, and the Group
expressly disclaims any obligation or commitment to publish an
update or revision of the forward-looking statements contained in
this press release to reflect changes in their underlying
assumptions, events, conditions, or circumstances. The
forward-looking statements contained in this press release are for
illustrative purposes only. Forward-looking statements and
information are not guarantees of future performance and are
subject to risks and uncertainties that are difficult to predict
and are generally beyond the Group's control. These risks and
uncertainties include but are not limited to the uncertainties
inherent in research and development, future clinical data and
analyses, (including after a marketing authorization is granted),
decisions by regulatory authorities (such as the Food and Drug
Administration or the European Medicines Agency) regarding whether
and when to approve any application for a drug, process, or
biological product filed for any such product candidates, as well
as their decisions regarding labelling and other factors that may
affect the availability or commercial potential of such product
candidates. A detailed description of the risks and uncertainties
related to the Group's businesses can be found in Chapter 4.4 "Risk
Factors" of the Group's Registration Document filed with the French
Financial Markets Authority (AMF) under number D-18-0387 on 25
April 2018, available on the Group's website (www.guerbet.com).
For more information about Guerbet,
please visit www.guerbet.com
Jean-François Le Martret
Chief Financial Officer
+33 (0)1 45 91 50 00
|
Financial Communications
Benjamin Lehari
+33 (0)1 56 88 11 25
blehari@actifin.fr
Press
Jennifer Jullia
+33 (0)1 56 88 11 19
jjullia@actifin.fr
|
Press release
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: GUERBET via Globenewswire
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