November 13, 2008
Eurofins' results for the nine months to 30 September 2008 reflect the strong, non-cyclical nature of the markets in which it operates, illustrated by good organic growth, as well as the Group's continuing investment to bring recent acquisitions up to Group standards and to build strong and sustainable competitive advantages.
Organic growth for both the quarter and the first nine months was over 10%
EBITDA grew 27% to ¤52.7m (¤41.6m NM 2007)
Operating profit (EBITAS*) increased to ¤27.3m (¤23.6m in NM 2007)
EBITAS* increased by almost ¤10 million (52%) compared to a proforma ¤17.9m for the same scope in NM 2007
Net profit was ¤8.9m (¤8.2m NM 2007) and net profit to the Group was ¤6.8m (¤6.8m NM 2007).
Capacity expansion is needed in several areas to cope with the current and expected levels of demand. The investment in infrastructure (new or expanded facilities in Nantes, Colorado, Virginia, Munich and Sao Paolo), systems (roll-out of laboratory management systems, the one-IT programme) and strong business leaders continues. The objective of these investments is to build strong barriers to entry in terms of the best and broadest service offering, market-leading positions in the most important geographies and a global network of efficient, state-of-the-art laboratories.The Up to Standards perimeter has performed well and reported year-to-date EBITAS* of ¤36.8m on revenues of ¤237.8m, a margin of 15.5%.
The Under Development perimeter reported revenues of ¤206.1m and losses for the nine months of ¤9.5m.
Whilst the margin performance of the Under Development perimeter is comparable to that of reported figures for the same period last year, it represents a significant improvement compared to proforma 2007, which includes the full year result of several loss making laboratories acquired in 2007. This year the performance of this perimeter is impacted by a high level of one-off restructuring costs for three loss-making companies acquired in Q4 2007, which Eurofins' standardisation programme will not bring to break even within the current year. Other parts of the Under Development perimeter have performed well in Q3, so that overall losses in this perimeter reduced from 5.2% of turnover in Q2 to 1.8% in Q3. This is in addition to a fast ramp up of start-up costs elsewhere. Our previously communicated mid-term goals for all of these units (overall 15% margin three years after acquisition) and our overall objectives for 2009 remain unchanged. We anticipate that the Up-to-Standards perimeter should meet this margin level already in 2008. The Under Development perimeter full-year losses are expected to be in the range of ¤5m to ¤10 million.
Like other participants, Eurofins considers its markets to be strong and growing, even in the current economic climate. This is driven by macro drivers such as regulation, the global supply chain, consumer awareness and even the need amongst our potential customers to be more cost-aware (i.e. the need to outsource expensive internal laboratories). In the meantime the Group is working hard to organise itself in the best possible way to maximise shareholder returns in the medium and long-term. The outlook for 2009 therefore remains promising and will be communicated in full detail with the 2008 annual results in March 2009.
|Up to Standard
Full disclosure can be found in the Third Quarter/Nine Months Report 2008, including consolidated financial statements and accompanying summary notes.
* EBITAS - earnings before interest, tax, amortisation of intangible assets and non-cash charge for share options.
The Third Quarter report can be found on the Eurofins website at the following location:
For further information please contact:
Phone: +32-2-769 7383
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 about 7,000 staff in more than 150 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 NYSE Euronext Paris (ISIN FR0000038259) and Frankfurt (WKN 910251) Stock Exchanges (Reuters EUFI.LN, Bloomberg ERF FP, ESF, EUFI.DE).
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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