May 14, 2008
Eurofins continues to make progress year-on-year, with revenues in the first quarter reaching ¤137.3m, up 34% from Q1 2007 and EBITDA increasing to ¤10.7m from ¤9.2m in the same period in 2007. Furthermore net cash provided by operating activities increased by 65% from ¤5.9m in Q1 2007 to ¤9.7m. As usual this is the weakest quarter of the year but the business continues to improve and has performed as per the stated expectations for the year. The Group’s organic growth was again over 10% and underlying profitability in long established businesses is in line with our annual objectives and has remained consistent with comparable prior periods.
The ±Up-to-Standards’ perimeter reported an EBITAS* margin of just under 10% for the quarter, up from 8% in Q1 2007. The ±Under Development’ perimeter made a loss of ¤4.5m, compared to a proforma loss of ¤5.0m in Q1 2007, with current revenues significantly higher than Q1 2007 revenues. Therefore margins in the Under Development perimeter have been improved by almost 2% points compared to Q1 last year.
In the quietest quarter of the year, as the Group scales up its operations and its capabilities to manage the new phase into which it is moving, including start up laboratories in many promising markets, the high level of fixed costs (principally personnel costs) has a relatively bigger impact on profitability. This is further enhanced by the full consolidation effect of loss-making acquisitions. Along with many other businesses there was an additional small effect of there being fewer working days in the quarter due to the timing of the Easter period. In absolute terms the EBITAS profit was 43% above the proforma 2007 Q1 (¤2.5m Q1 2008, ¤1.8m Q1 2007) and slightly down on the reported prior year (¤3.5m Q1 2007) directly related to the lag in the contribution of recently acquired businesses and additional assets (44% higher depreciation charge in Q1 2008). Interest charges have increased due to the financing of businesses acquired last year which do not yet generate corresponding operating margins. Taking all the above mentioned effects together with the traditionally lower revenues in the first quarter (due to both climatic and client budgeting and ordering cycles), this had a short-term disproportionate impact on the bottom line in Q1.
Eurofins’ management believes overall that it is making good progress in both of the perimeters and that based on Q1 performance the objectives of approaching a 15% margin in Up-to-Standards and at least break even in Under Development for the full year are fully achievable.EBITAS - earnings before interest, tax, amortisation and non-cash charge for share options
The Management of Eurofins will hold a conference call about the Q1 2008 results today at 8.30 CET.
Participant Telephone Numbers: +33(0)1 70 99 43 01 France +49(0)69 5007 1317 Germany +44(0)20 7806 1968 UK Confirmation Code: 2486243
The full first quarter report is available on our website under http://www.eurofins.com/investors/publications/reports/en.
For further information 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 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).
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.Information réglementée :
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