January 18th, 2008
In January 2006 Eurofins set its teams a five-year objective of reaching sales of EUR 600 million by 2010. Thanks to positive developments in 2006 and 2007, including ongoing organic growth, acquisitions and outsourcing contracts won, Eurofins’ management is of the opinion that this objective can be brought forward by two years. Subject to business trends remaining as they are and successful execution of its strategy, Eurofins may indeed reach sales of EUR 600 million as early as this year (2008). This represents an increase of around 10% compared with the last 2008 sales target (EUR 550m) released on the 7th of November 2007.
At its biennial leadership conference, attended by 150 of the Group’s top leaders on January 18th/19th 2008, Eurofins will unveil its new four-year objectives. These include reaching annual revenues of EUR 600 million in 2008, EUR 720m in 2009 (over USD 1 billion)* and EUR 1 billion by 2011, through a combination of organic growth and acquisitions. In the last decade, Eurofins has, on average, doubled its revenues every 2 years. Given its now much larger size, an annual revenue growth objective of 20% a year (including 10% organic growth and 10% through acquisition) is becoming an ever more ambitious goal. However, while there can be no certainty that these objectives will be met, as can be judged today based on the growing needs for testing, the company’s leading technological & market position and the market consolidation trend, Eurofins’ leadership is of the opinion that these targets are achievable.
Eurofins’ new mid-term financial objectives also include further improving operating margins (towards 15%), return on capital employed** (to exceed 20% before tax) as well as free cash flow. Eurofins will publish its 2007 results on March 5th 2008. Any comments as to specific profitability objectives for this year can only be made at that time. For the mid-term, Eurofins leadership remains convinced that a 15% sustainable operating margin for its up-to-standards perimeter is an achievable objective. At this stage, Eurofins intends to continue to finance its growth using a mix of free cash flow and debt. With respect to the latter, the OBSAR issued in 2006 and the hybrid bond of May 2007 provide ample flexibility to finance Eurofins’ mid-term expansion plan and no new debt or equity issues are planned at this time.
- at current exchange rates
- ROCE = EBITA over last 12 months/average capital employed at start of last 4 quarters
1 c.f. press release of January 19th 2006 2 c.f. press release of November 7th 2007
For further information about Eurofins please visit www.eurofins.com or contact: Investor Relations Phone: +32-2-769 7383 E-mail: firstname.lastname@example.org
Notes for the editor: Eurofins - a global leader in bio-analysis Eurofins Scientific is a life sciences company operating internationally to provide a comprehensive range of analytical testing services to clients from a wide range of industries including the pharmaceutical, food and environmental sectors. With over 7,000 staff in more than 100 laboratories across 29 countries, Eurofins offers a portfolio of over 25,000 reliable analytical methods for evaluating the authenticity, origin, safety, identity, composition and purity of biological substances and products. The Group is committed to provide its customers with high quality services, accurate results in time and, if requested, expert advice by our highly qualified staff.
The Eurofins Group is one of the global market leaders in this field of applied life sciences. It intends to pursue its dynamic growth strategy and expand both its technology portfolio and its geographic reach. Through R&D, in-licensing and acquisitions, the Group draws on the latest developments in the field of biotechnology to offer its clients unique analytical solutions and the most comprehensive range of testing methods.
As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients’ increasingly stringent quality and safety standards and the demands of regulatory authorities around the world. The shares of Eurofins Scientific are listed on the Euronext Paris (ISIN FR0000038259) and Frankfurt (WKN 910251) Stock Exchanges (Reuters EUFI.LN, Bloomberg ERF FP, ESF, EUFI.DE).
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 judgement of Eurofins Scientific 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 data available to the Company as of the date of publication, but no guarantee can be made as to their validity.
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