>
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 revenue25 October 2018,
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 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
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 |
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