Guerbet: 2022 annual results
2022 annual results
Activity
- Annual revenue: €753.3 million, up 2.9% (-1.1% at
CER1)
- Steady momentum in Asia and for Interventional Imaging;
negative impact of production delays at the Raleigh site
Profitability in line with
expectations
-
- The restated EBITDA margin2 is 13.8%, at the top of the range
of 13% to 14% announced last October
2023 outlook
-
- Revenue: expected growth above 5% on a like-for-like basis and
at CER1
- Restated EBITDA margin3 expected around 11% before returning in
2024 to a level higher than in 2021 (14.4%)
Villepinte, March 22,
2023: Guerbet (FR0000032526 GBT), a global specialist in
contrast agents and solutions for medical imaging, has published
its consolidated financial statements for the 2022 fiscal year.
Revenue for the year was €753.3 million, up 2.9% from 2021,
including a favorable forex effect of €29.3 million, almost
half of which (€14.2 million) was due to the appreciation of
the dollar. At constant exchange rates (CER1), the Group’s activity
was down 1.1% over the past year.
This change in revenue was the result of:
- The one-off decrease in production rates at the Raleigh (North
Carolina, USA) plants due to recruitment difficulties in the first
half of the year and the time necessary to train new hires,
- Adaptation of the production lines to prioritize manufacturing
of EluciremTM, which received its market authorization from the FDA
on September 21, authorization obtained via the “fast track”
process. This strategic decision mainly affected the production of
Optiray® and pre-filled syringes references and related sales in
many markets worldwide.
1 Constant exchange rates (CER): the exchange
rate impact was eliminated by recalculating sales for the period on
the basis of the exchange rates used for the previous fiscal
year.
2 Excluding extraordinary costs relating to optimization of the
operational structure and changes in the sales model in China and
excluding compensation received in connection with the termination
of the contract with Merative.
3 Excluding extraordinary costs relating to optimization of the
operational structure and changes in the sales model.
In the Americas in particular,
the decrease in annual revenue (-7.5% at CER) was entirely due to
the contraction in volumes attributable to production delays in
Raleigh.
In the EMEA region, activity
was down -1.9% at CER last year in connection with the regulatory
price reductions in France and the shutdown of the commercial
activity in Turkey in November 2022.
In Asia, the very strong growth
(+8.5% at CER) was driven by the acceleration of sales in China
(+45.6%), a market that fully benefited from the direct
distribution model rolled out starting in the second quarter.
By activity, the change in annual revenue in
Diagnostic Imaging (-2.2% at CER) resulted
from:
- For MRI, an increase in sales (+1.7% at CER)
due to higher volumes and against a backdrop of negligible price
erosion, despite the arrival of generic Dotarem® in the United
States.
- For X-ray, an annual decline (-4.4% at CER)
due to lower volumes of Optiray®, while sales of Xenetix® remained
strong throughout the year.
In Interventional Imaging, the
momentum also remained very positive in 2022 (+8.1% at CER) thanks
to Lipiodol® sales, which accelerated steadily from the second
quarter.
In millions of eurosConsolidated financial
statements (IFRS) |
2021Reported |
2022Reported |
Revenue |
732.1 |
753.3 |
EBITDA * |
105.1 |
103.1 |
% of revenue |
14.4% |
13.7% |
Operating income |
38.7 |
(18.2) |
% of revenue |
5.3% |
NS |
Net income |
32.6 |
(41.1) |
% of revenue |
4.5% |
NS |
Net debt |
217.8 |
270.4 |
* EBITDA = Operating income + net amortization,
depreciation and provisions.
Note: The audit procedures on the consolidated financial
statements have been completed. The certification report is being
issued.
Good EBITDA margin performance in the
face of inflation
In 2022, Guerbet managed to preserve its
operational profitability by demonstrating great financial
discipline to compensate for the impact of high inflation on
certain costs. These efforts to control costs, reflected in
particular in a contained rise in staff costs (+3.4%) despite wage
tensions in the United States, limited the decline in the EBITDA
margin. Its reported rate was 13.7% of revenue in 2022, compared
with 14.4% in the previous year. In line with the 13% to 14% range
announced last October, the restated EBITDA margin rate was 13.8%.
This aggregation excludes extraordinary costs relating to the
optimization of the operational structure and changes in the sales
model in China as well as compensation (€4 million) received
in connection with the termination of the contract with Merative
(formerly IBM Watson) last November.
Significant asset impairments in
connection with new strategic priorities
As of December 31, 2022, the Group’s
operating result was negative at -€18.2 million, a change
entirely due to items with no impact on cash flow. As announced in
February, and in connection with the new strategic priorities
unveiled at the beginning of the year for Interventional Imaging
and Artificial Intelligence, Guerbet recognized significant asset
impairments in 2022 relating to Accurate Medical Therapeutics,
Occlugel and to software developed with IBM Watson. Impairments on
these three assets totaled €58.8 million.
The Group’s net income amounted to
-€41.1 million for the year after accounting for financial
expenses and stable forex losses. The tax expense was
€12.7 million after the Group accounted for €4.5 million
in items indicated in a notice from the tax authorities. After
examining the tax risks of all its subsidiaries, the Group recorded
an additional tax expense of €4.4 million under IFRIC 23.
Solid financial structure despite
increased inventories; dividend of €0.50 per share
As of December 31, 2022, equity totaled
€380 million, compared with €405 million one year
earlier. At the same time, net debt increased from
€218 million to €270 million, mainly because of the
increase in WCR, fueled by higher inventories. This increase
resulted from inflationary pressures as well as the establishment
of both precautionary stocks on critical materials and stocks of
EluciremTM.
For the 2022 fiscal year, the Board of Directors
will propose a dividend of €0.50 per share to the shareholders at
the General Meeting on May 26, 2023.
2023: acceleration of activity but
operational profitability impacted by inflation
Since the beginning of the year, Guerbet has
been confident in its ability to grow its revenue in an improving
contrast media market, with structural growth in volumes
accompanied by positive price effects for the first time in many
years. The Group is able to address this promising market with an
innovative range of solutions meeting the needs of healthcare
professionals as closely as possible. As announced in January,
Guerbet intends to mobilize its teams around three main priorities
in 2023:
- Stronger positions in Diagnostic Imaging,
where the year will be marked by the commercial launch of
EluciremTM, a new product bringing a major innovation to complement
the MRI offering. The ramp-up is expected by 2024, with a launch
already effective in the United States, while in Europe the
marketing authorization is expected in the second half of the
year.
- Refocusing of the Interventional Imaging activity on
Lipiodol®, with an emphasis on the commercial development
of current innovative indications and an acceleration of R&D
efforts to develop new applications and indications for this
product.
- Acceleration of the Artificial Intelligence
roadmap, where the Group, after having regained full
strategic latitude following the termination of its collaboration
with Merative (formerly IBM Watson), confirmed its ambitions by
acquiring a stake in Intrasense. Licensing agreements are expected
to materialize in the first half of the year with the company,
whose medical imaging software is highly complementary to Guerbet’s
asset portfolio.
Although Guerbet has identified numerous
business opportunities in growing markets, it continues to face a
demanding environment marked by persistent pressure on supply
costs, specifically in Iodine. Certain inflationary effects, with
little impact in 2022, will have a significant negative effect on
the Group’s margins in 2023.
In this context, Guerbet confirms that it
anticipates revenue growth of more than 5% on a like-for-like basis
and at CER for 2023. The Group expects stronger growth in the
second half of the year than in the first, especially with the
industrial activity being brought back up to the required level
standard in Raleigh and the gradual ramp-up of EluciremTM. In terms
of profitability, the restated EBITDA/revenue margin rate3 is
expected to be around 11% before returning in 2024 to a level
higher than in 2021 (14.4%).
3 Excluding extraordinary costs relating to
optimization of the operational structure and changes in the sales
model.
About Guerbet
At Guerbet, we build lasting relationships so
that we enable people to live better. That is our purpose. We are a
leader in medical imaging worldwide, offering a comprehensive range
of pharmaceutical products, medical devices, and digital and AI
solutions for diagnostic and interventional imaging. A pioneer in
contrast media for 95 years, with more than 2,600 employees
worldwide, we continuously innovate and devote 10% of our sales to
research and development in four centers in France, Israel, and the
United States. Guerbet (GBT) is listed on Euronext Paris (segment
B – mid caps) and generated €753 million in revenue in
2022.
Forward-looking statements
This press release may contain forward-looking
statements based on assumptions and forecasts by the Guerbet
Group’s management. Various known and unknown risks, uncertainties,
and other factors could lead to marked differences between the
Group’s future results, financial situation, development, and
performances and the estimates presented in these forward-looking
statements. These factors include those mentioned in Guerbet’s
public documents, available on its website www.guerbet.com. The
Group assumes no obligation to update or revise the forward-looking
statements in this press release to reflect future events or
developments.
Contacts
Jérôme
EstampesChief Financial
Officer+33 (0)1 45 91 50 00 Claire
LauvernierCommunications Director+33 (0)6 79 52 11
88 |
Financial
CommunicationsMarianne
Py+33 (0)1 80 48 25
31mpy@actifin.fr PressMathias
Jordan+33 (0)1 56 88 11
26mjordan@actifin.fr |
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