Guerbet: 2019 half-year results
2019 half-year results
- Reported revenue of €400.6 million, up 2.8%, in line with
the annual objectives
- Revenue of €396.5 million at constant exchange rates, up
1.8%
- Results in line with GEAR 2023
- €61.6 million EBITDA, including significant expenditures
to prepare for the future
- Net income of €19.0 million
- 2019 objectives confirmed
- Moderate sales growth
- Improved inventory levels
Villepinte, 26 September
2019 – Guerbet (FR0000032526), a global specialist in
contrast agents and solutions for medical imaging, announced its
consolidated results for the first half of 2019.
Revenue growth across all areas of
activity
The Group generated €400.6 million in
revenue in the first half, up 2.8%. This figure incorporates a
favorable exchange effect of €4.1 million. At constant
exchange rates (1), sales total €396.5 million, up 1.8%.
Diagnostic Imaging revenue grew
2.2% to €351.9 million at constant exchange rates. At current
exchange rates, revenue totaled €354.6 million at 30 June.
- MRI activity increased 1.8% at constant exchange rates (to
€135.9 million) despite Dotarem® generics and the withdrawal
of Optimark®, now nearly completed;
- CT & Cath Lab revenue grew 2.5% at constant exchange rates
(to €216 million) (1) due to good sales of Optiray® (2).
Interventional Imaging, the
Group’s growth driver, saw 15.9% revenue growth (€33.8 million
at constant exchange rates).
A half-year marked by significant
expenditures for organic growth
IFRS 16 on the recognition of leases for
consolidated financial statements entered into force on 1 January
2019. Guerbet decided to apply this standard on a simplified
retrospective basis, which does not provide for restatement of the
previous financial year. For comparison purposes, the 2019
figures are presented after application of IFRS 16 and before
application of IFRS 16 to make them comparable with the 2018
figures.
In millions of eurosConsolidated financial statements (IFRS) |
H1
2018Published |
H1 2019Published(With
IFRS 16) |
H1 2019 Comparable(Without
IFRS 16) |
Revenue |
389.6 |
400.6 |
400.6 |
EBITDA (3) |
59.6 |
61.6 |
57.1 |
% of revenue |
15.3% |
15.4% |
14.3% |
Operating income |
36.6 |
22.3 |
22.2 |
% of revenue |
9.4% |
5.6% |
5.5% |
Net income |
22.4 |
19.0 |
19.2 |
% of revenue |
5.8% |
4.8% |
4.8% |
Net Debt |
308.7 |
358.1 |
339.9 |
The financial statements for the first half of 2019, approved by
the Board of Directors on 25 September 2019, underwent a limited
review by the statutory auditors. The statutory auditors’ report is
currently being drawn up.
EBITDA totals €61.6 million, up 3.3%. It
incorporates additional charges related to the transition to direct
distribution in Japan, the enhancement of resources required for
the development of the interventional imaging activity, and the
increase in costs associated with gadopiclenol phase III. It also
includes €4.5 million for the elimination of rents following
the implementation of IFRS 16.
EBITDA also benefited from the increase in
activity and strict cost control resulting from the implementation
of the Cost to Win plan. This plan to reduce SG&A expenditures
is expected to start delivering its full potential in 2021.
At 30 June 2019, operating income totaled
€22.3 million. This includes an increase in amortization
related, among others, to Accurate.
Net income was €19.0 million versus
€22.4 million as of 30 June 2018.
Sound financial structure and refinancing of the Group’s
debt
Following the application of IFRS 16, the
Group booked greater non-current assets by including the rights to
use leased real estate assets for a net amount of €18 million,
resulting in greater financial debt. As of 30 June 2019,
shareholders’ equity stood at €367.9 million, net debt
including IFRS 16 amounted to €358.1 million, and cash
totaled €75.9 million. With a cash flow of €62.3 million
during the half-year period, the Group has the necessary resources
for its development.
As a reminder, Guerbet signed a five-year
€500 million credit agreement on 13 February 2019 to refinance
its existing debt. As of the end of June, the net debt/EBITDA ratio
was 3.14 without IFRS 16.
2019 outlook
Guerbet should benefit from moderate sales
growth in the second half of 2019, in particular thanks to
Optiray’s growth, Dotarem’s resilience, an improved consumables
dynamic for injecting contrast media, the increase in Lipiodol® and
the progressive uptake in sales of Accurate’s microcatheters.
Moreover, Guerbet anticipates the start of
sensitive and sustainable improvements in its inventory levels
following the launch of industrial transfers.
(1)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.
(2)This figure includes digital services solutions, technical
services, and other Diagnostic Imaging services for
€5 million.
(3) EBITDA refers to operating income with the net allowance for
amortization, depreciation, and provisions added back in.
Upcoming events:
Publication of 3rd quarter 2019 revenue24
October 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 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
€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
authorization 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.19-0363 on 18 April
2019, available on the Group’s website (www.guerbet.com).
For more information about Guerbet, please visit
www.guerbet.com
Contacts
Jérôme
EstampesChief 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 RS 2019 - 26 septembre 2019-VDEFUK-MAJ25092019
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