Regulatory News:
Eurofins Scientific SE (Paris:ERF):
- Record-high 9M 2022 revenues of €5,033m, +2.7% vs. 9M 2021,
driven by steady organic growth and acquisitions that more than
compensated for the year-on-year decrease in revenues from COVID-19
testing and reagents of approximately €500m.
- The Core Business1 (excluding COVID-19 related testing and
reagent revenues) delivered solid revenue organic growth2 of +6.7%
in Q3 2022 vs. Q3 2021 (adjusted for the small impact from public
working days), above its mid-term organic growth objective of 6.5%
p.a.
- Disruptions related to the war in Ukraine continue to be a
growth headwind in Europe, in particular in the Food Testing
business.
- In contrast, better economic perspectives in North America and
Rest of the World helped to sustain Group organic growth, as these
regions accounted for more than half of the Group revenues in Q3
2022 (Europe: 49%, North America: 40%, Rest of the World:
11%).
- Revenue from COVID-19 testing and reagents continue to decline
as expected:
- Due to further reductions in COVID-19 testing requirements by
governments, revenues from COVID-19 testing and reagents were
approximately €60m in Q3 2022, materially lower than the level in
H1 2022 of over €470m and the level in Q3 2021 of over €300m.
- Based on current trends, Eurofins continues to foresee revenues
of about €600m from COVID-19 testing and reagents in FY 2022.
- Outside of COVID-19 testing, Eurofins remains an important
innovator and contributor to improving human health and enabling
sustainability:
- Eurofins Transplant Genomics has made commercially available
TruGraf® Liver, the first and only non-invasive gene expression
diagnostic test to optimise immunosuppression in liver transplant
recipients.
- Eurofins Genoma launched niPGT-A, a non-invasive, embryo biopsy
free, preimplantation genetic aneuploidy screening test that
determines chromosonal abnormalities which may lead to
complications during pregnancy.
- Eurofins Belgium NV has begun carrying out the largest European
biomonitoring project for PFAS in blood in Antwerp, commissioned by
the Agency for Care and Health of the Flemish Government.
- Eurofins Sustainability Solutions has been launched to bring
together a wide range of Eurofins companies’ sustainability
offerings in one place, enabling global customers to benefit from
the Eurofins network’s market leading solutions to contribute to
product and enterprise sustainability.
Outlook
- Eurofins is confirming its objectives for 2022 and plans to
update its objectives for 2023 and 2024 when publishing its FY 2022
results on 22 February 2023. By then, the potential impacts of the
war in Ukraine, supply chain disruptions, ongoing/permanent
COVID-19 testing, inflation and foreign exchange rates will
hopefully be clearer.
Comments from the CEO, Dr Gilles Martin:
“As has been the case in the 35 years since its founding in
October 1987, Eurofins remains unique in its capacity for growth,
innovation and value creation. Despite the current environment of
economic uncertainty and inflationary pressures, we were able to
generate organic growth in Q3 2022 ahead of our mid-term target of
6.5% p.a. Our scientists continue to invent new and novel tests
that have a significant potential to improve human health outcomes
and protect our environment, while our network of entrepreneurs
pioneer new business opportunities related to sustainability. And
just as we have always done, we remain steadfast in our strategy of
investing significantly for future growth of revenues and returns
to generate sustainable shareholder value over the long term. With
these aspects in mind, I am confident that Eurofins will be as
successful and vibrant in the coming years as it has been over the
previous 35.”
Conference Call
Eurofins will hold a conference call with analysts and investors
today at 15:00 CET to discuss the results and the performance of
Eurofins, as well as its outlook, and will be followed by a
questions and answers (Q&A) session.
Click here to Join Call >>
No need to dial in. From any device, click the link above
to join the conference call. Alternatively, you may dial-in to the
conference call via telephone using one of the numbers below:
UK: + 44 330 165 4027 US: + 1 323 794 2551 FR: + 33 176 772 274
BE: + 32 240 406 59 DE: + 49 692 222 134 20
9M 2022 Organic Growth Calculation and Revenue
Reconciliation
In €m except otherwise stated
9M 2021 reported revenues
4,902
+ 2021 acquisitions - revenue part not
consolidated in 9M 2021 at 9M 2021 FX rates
151
- 9M 2021 revenues of discontinued
activities / disposals10
-20
= 9M 2021 pro-forma revenues (at 9M 2021
FX rates)
5,034
+ 9M 2022 FX impact on 9M 2021 pro-forma
revenues
216
= 9M 2021 pro-forma revenues (at 9M
2022 FX rates) (a)
5,250
9M 2022 organic scope* revenues (at 9M
2022 FX rates) (b)
4,938
9M 2022 organic growth rate
(b/a-1)**
-5.9%
9M 2022 acquisitions - revenue part
consolidated in 9M 2022 at 9M 2022 FX rates
89
9M 2022 revenues of discontinued
activities / disposals10
6
9M 2022 reported revenues
5,033
* Organic scope consists of all companies
that were part of the Group as at 01/01/2022. This corresponds to
the 2021 pro-forma scope.
** Including the impact from a
year-on-year decrease in revenues from COVID-19 testing and
reagents of approximately €500m.
Breakdown of Revenue by Operating Segment
€m
9M 2022
As % of total
9M 2021
As % of total
Growth %
Europe
2,651
52.7%
2,939
60.0%
-9.8%
North America
1,851
36.8%
1,557
31.8%
18.9%
Rest of the World
531
10.6%
406
8.3%
30.7%
Total
5,033
100.0%
4,902
100.0%
2.7%
€m
Q3 2022
As % of total
Q3 2021
As % of total
Growth %
Europe
796
49.1%
934
57.3%
-14.8%
North America
645
39.8%
549
33.7%
17.6%
Rest of the World
180
11.1%
147
9.0%
22.7%
Total
1,621
100.0%
1,630
100.0%
-0.5%
1
Core Business excludes COVID-19 related
clinical testing and reagents revenues
2
Organic growth for a given period (Q1, Q2,
Q3, Half Year, Nine Months or Full Year) – non-IFRS measure
calculating the growth in revenues during that period between 2
successive years for the same scope of businesses using the same
exchange rates (of year Y) but excluding discontinued
operations10.
For the purpose of organic growth
calculation for year Y, the relevant scope used is the scope of
businesses that have been consolidated in the Group's income
statement of the previous financial year (Y-1). Revenue
contribution from companies acquired in the course of Y-1 but not
consolidated for the full year are adjusted as if they had been
consolidated as of 1st January Y-1. All revenues from businesses
acquired since 1st January Y are excluded from the calculation.
3
Adjusted results – reflect the ongoing
performance of the mature9 and recurring activities excluding
“separately disclosed items4”.
4
Separately disclosed items – include
one-off costs from integration and reorganisation, discontinued
operations, other non-recurring income and costs, temporary losses
and other costs related to network expansion, start-ups and new
acquisitions undergoing significant restructuring, share-based
payment charge, impairment of goodwill, amortisation of acquired
intangible assets and negative goodwill, loss/gain on disposal and
transaction costs related to acquisitions as well as income from
reversal of such costs and from unused amounts due for business
acquisitions, net finance costs related to borrowing and investing
excess cash and one-off financial effects (net of finance income),
net finance costs related to hybrid capital, and the related tax
effects.
5
EBITDA – Earnings before interest, taxes,
depreciation and amortisation, share-based payment charge6,
impairment of goodwill, amortisation of acquired intangible assets,
negative goodwill, loss/gain on disposal and transaction costs
related to acquisitions as well as income from reversal of such
costs and from unused amounts due for business acquisitions.
6
Share-based payment charge and
acquisition-related expenses, net – Share-based payment charge,
impairment of goodwill, amortisation of acquired intangible assets,
negative goodwill, loss/gain on disposal and transaction costs
related to acquisitions as well as income from reversal of such
costs and from unused amounts due for business acquisitions.
7
Net capex – Purchase of intangible assets,
property, plant and equipment, less proceeds from disposals of such
assets.
8
Free Cash Flow to the Firm - Net cash
provided by operating activities, less Net capex.
9
Mature scope: excludes start-ups and
acquisitions in significant restructuring. A business will
generally be considered mature when: i) The Group’s systems,
structure and processes have been deployed; ii) It has been
audited, accredited and qualified and used by the relevant
regulatory bodies and the targeted client base; iii) It no longer
requires above-average annual capital expenditures, exceptional
restructuring or abnormally large costs with respect to current
revenues for deploying new Group IT systems. The list of entities
classified as mature is reviewed at the beginning of each year and
is relevant for the whole year.
10
Discontinued activities / disposals:
discontinued operations are a component of the Group’s Core
Business or product lines that have been disposed of, or
liquidated; or a specific business unit or a branch of a business
unit that has been shut down or terminated, and is reported
separately from continued operations. For more information, please
refer to Note 2.26 of the Consolidated Financial Statements for the
year ended 31 December 2021.
11
FCFF before investment in owned sites:
FCFF less Net capex spent on purchase of land, buildings and
investments to purchase, build or modernise owned sites/buildings
(excludes laboratory equipment and IT).
12
FY 2022 objectives have been set at H1
2022 average FX rates, assuming 6.5% organic growth in the Core
Business in H2 2022, €250m in revenues from acquisitions in FY 2022
consolidated at mid-year and €600m revenues from COVID-19 testing
and reagents in FY 2022.
Notes to Editors:
For more information, please visit
www.eurofins.com.
About Eurofins – the global leader in bio-analysis
Eurofins is Testing for Life. Eurofins is the global leader in
food, environment, pharmaceutical and cosmetic product testing, and
in discovery pharmacology, forensics, advanced material sciences
and agroscience Contract Research services. Eurofins is also a
market leader in certain testing and laboratory services for
genomics, and in the support of clinical studies, as well as in
BioPharma Contract Development and Manufacturing. The Group also
has a rapidly developing presence in highly specialised and
molecular clinical diagnostic testing and in-vitro diagnostic
products.
With over 61,000 staff across a decentralised and
entrepreneurial network of 940 laboratories in 59 countries,
Eurofins offers a portfolio of over 200,000 analytical methods to
evaluate the safety, identity, composition, authenticity, origin,
traceability and purity of a wide range of products, as well as
providing innovative clinical diagnostic testing services and
in-vitro diagnostic products.
The Group’s objective is to provide its customers with
high-quality services, innovative solutions and accurate results on
time. Eurofins is ideally positioned to support its clients’
increasingly stringent quality and safety standards and the
increasing demands of regulatory authorities as well as the
requirements of healthcare practitioners around the world.
In 2020 and 2021, Eurofins reacted quickly to meet the global
challenge of COVID-19, by creating the capacity to help over 20
million patients monthly who may have been impacted by the pandemic
with our testing products and our services and directly supporting
healthcare professionals working on the front line to fight the
virus. The Group has established widespread PCR testing
capabilities and has carried out over 40 million tests in its own
laboratories, is supporting the development of a number of vaccines
and has established its SAFER@WORK™ testing, monitoring and
consulting programmes to help ensure safer environments, travel and
events during COVID-19.
Eurofins has grown very strongly since its inception and its
strategy is to continue expanding its technology portfolio and its
geographic reach. Through R&D and acquisitions, the Group draws
on the latest developments in the field of biotechnology and
analytical chemistry to offer its clients unique analytical
solutions.
Shares in Eurofins Scientific are listed on the Euronext Paris
Stock Exchange (ISIN FR0014000MR3, Reuters EUFI.PA, Bloomberg ERF
FP).
Until it has been lawfully made public widely by Eurofins
through approved distribution channels, this document contains
inside information for the purpose of Regulation (EU) 596/2014 of
the European Parliament and of the Council of 16 April 2014 on
market abuse, as amended.
Important disclaimer:
This press release contains forward-looking statements and
estimates that involve risks and uncertainties. The forward-looking
statements and estimates contained herein represent the judgment of
Eurofins Scientific’s management as of the date of this release.
These forward-looking statements are not guarantees for future
performance, and the forward-looking events discussed in this
release may not occur. Eurofins Scientific disclaims any intent or
obligation to update any of these forward-looking statements and
estimates. All statements and estimates are made based on the
information available to the Company’s management as of the date of
publication, but no guarantees can be made as to their completeness
or validity.
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Investor Relations Eurofins Scientific SE +32 2 766 1620
ir@eurofins.com
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