Guerbet: 2018 annual results
2018 annual results
- Growth and EBITDA in line with announced
targets
- Reported revenue: €789.6 million
- Revenue at constant exchange rates: €825.7 million; +2.3%,
in line with the guidance given at Capital Markets Day in April
2018 (GEAR 2023 plan)
- Reported EBITDA: €110.6 million, also in line with the
guidance
- Successful implementation of the GEAR 2023
strategic plan
- Organic growth: transition to direct distribution in Japan in
October, new indications for Lipiodol®, entry into phase III
for gadopiclenol
- External growth: strengthening of the Interventional Imaging
offering with two initial acquisitions and identification of new
targets
- 2019, further transformation
- Gradual establishment of industrial synergies
- Start of sales of Accurate Medical Therapeutics microcatheters
in the United States and then in Europe
- Opportunities for growth in Interventional Imaging
Villepinte, March 26,
2019 – Guerbet (FR0000032526), a global specialist in
contrast agents and solutions for medical imaging, is announcing
its consolidated annual results for 2018.
On March 26, 2019, the Board of Directors
approved the financial statements for the period ended December 31,
2018. The audit procedures have been completed, and the statutory
auditors’ report is being prepared.
Main highlights of the 2018 financial year
- February: acquisition of the Israeli company Accurate Medical
Therapeutics, specialising in the development of microcatheters for
Interventional Imaging
- April: presentation of the GEAR 2023 strategic plan, which
aims to accelerate organic growth and generate external growth
through acquisitions, particularly in the field of Interventional
Imaging;
- April: acquisition of a new microsphere technology from
Occlugel to strengthen the Intervention Imaging offering;
- June: a strategic partnership signed with IBM Watson Health for
joint development and marketing of artificial intelligence
solutions for earlier, more accurate diagnosis and therapeutic
decision-making support for liver tumours;
- October: launch of direct distribution in Japan, the world’s
number 2 market;
- An extension of indications obtained in numerous countries for
Lipiodol Ultra-Fluid® in Interventional Imaging for
chemo-embolization of liver tumours by microcatheter;
- Further development of NCE gadopiclenol for MRI. Preclinical
studies have demonstrated the efficacy and safety of use of this
product, and its development will proceed to phase III starting in
early 2019.
Activity marked by a significant exchange rate
effect
The reported revenue of €789.6 million,
down 2.2%, was affected by an unfavourable exchange rate effect of
€36.1 million. The main exchange rate impacts came mainly from
the Brazilian real (€10.6 million), the US dollar
(€7.6 million), the Turkish lira (€5.5 million), and the
Argentine peso (€3.1 million).
At constant exchange rates, revenue totalled
€825.7 million, representing 2.3% in fully organic growth.
Diagnostic Imaging revenue at constant exchange rates decreased
slightly to €722.6 million (-0.7%) compared with the 2017
financial year. The Imaging Intervention activity confirmed its
strong growth with revenue at constant exchange rates at
€67.2 million, up 18.6%.
EBITDA on track
In millions of
eurosConsolidated financial statements (IFRS) |
2018 |
2017 |
Revenue |
789.6 |
807.1 |
EBITDA* |
110.6 |
130.0 |
% of revenue |
14.0% |
16.1% |
Operating Income |
69.9 |
79.2 |
% of revenue |
8.9% |
9.8% |
Net
income |
46.8 |
46.2 |
% of revenue |
5.9% |
5.7% |
Net debt |
308.7 |
278.4 |
* EBITDA = Operating Income + allowance for amortization,
depreciation and provisions
Reported EBITDA totals €110.6 million. For
the first time, it incorporates the full-year impact of the arrival
of the Dotarem® generic in Europe. It also reflects the efforts
made under the GEAR 2023 plan with the switch to a direct
distribution organisation in Japan, stronger positioning in
countries with high commercial potential, and the costs associated
with the transition to phase III for gadopiclenol, Dotarem’s
successor.
Operating Income totalled €69.9 million, or
8.9% of revenue.
Net income was stable at €46.8 million
compared with €46.2 million in 2017. This figure incorporates
a favourable change in the effective tax rate to 29.5%.
Sound financial position, refinancing of
the Group’s debt
The Group enjoys solid fundamentals. Equity
increased by €24.6 million to €366.8 million, and net
debt amounts to €308.7 million. With €98.8 million in
cash flow, Guerbet has a solid financial position with leverage
(Net Debt/EBITDA) of 2.79.
The Board of Directors will propose a dividend
of €0.85 per share to the shareholders at the General Meeting on
May 24, 2019.
In order to contribute to the Group’s
development as part of its GEAR 2023 strategic plan, and in
view of its debt capacity, Guerbet signed a five-year
€500 million credit agreement on February 13, 2019, to
refinance its existing debt.This contract was entered into with
nine financial partners, coordinated by BNP Paribas.
This new debt has a single covenant (net
debt/EBITDA = 4.0) over the life of the loan.
Executive Committee strengthening
As part of its GEAR 2023 growth strategy, the
Group has decided to appoint Jean-François Le Martret as Deputy CEO
with two specific missions: M&A operations and deployment of
the « Cost to Win » project. The Group will welcome a new
CFO, Jérôme Estampes from 1 April. He has spent most of his career
in international cosmetics companies (Crown, Coty, Pat
McGrath).
2019 outlook
In 2019, the Group anticipates a moderate sales
growth. Dotarem will continue to benefit from higher volumes and
from the switch to direct distribution in Japan but will be
impacted by a continued price decrease and by the arrival of
generics in new countries. Guerbet also has development drivers in
Interventional Imaging and digital solutions. In 2019, the start of
sales of the Accurate Medical Therapeutics DraKon® and SeQure®
microcatheters in the US, and then in Europe once the CE marking is
obtained, is a growth area in Guerbet’s strategy. In addition, the
Group should benefit from the full-year contribution of Lipiodol’s
indications registered in new countries in 2018. The
financial position for the current year should benefit from a
significant improvement in cash flow with a positive change in the
WCR, particularly through the decrease in inventories.
At constant exchange rates: amounts and rates of
growth are calculated by cancelling out the exchange rate effect,
which is defined as the difference between the indicator’s value
for period N, converted at the exchange rate for period N-1,
and the indicator’s value for period N-1.
Upcoming events:
Publication of first-quarter 2019
revenueApril 18, 2019, after trading
About
Guerbet
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 across its four centres 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
€790 million in revenue in 2018. 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
authorisation is granted), decisions by regulatory authorities
(such as the US 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
Contacts
Jean-François Le MartretChief Financial
Officer+33 (0)1 45 91 50 00 |
Financial
CommunicationsBenjamin
Lehari+33 (0)1 56 88 11 25blehari@actifin.fr PressJennifer
Jullia+33 (0)1 56 88 11 19jjullia@actifin.fr |
- Guerbet CP RA 2018 - 27 mars 2019 VA
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