EUROFINS SCIENTIFIC : Eurofins continues to grow revenues and make progress in bringing up to standard its Under Development activities
May 14, 2009
The first quarter has shown that in otherwise uncertain and volatile times, Eurofins is proving to be more than resilient, showing continued underlying growth. In spite of adverse currency effects and discontinued activities revenues have increased to €148.2m (Q1 2009) from €139.6m (Q1 2008), EBITDA has remained constant at €10.7m and EBITAS* is in line with overall expectations at €1.6m for Q1 2009 compared to €2.5m for Q1 2008.
The Q1 results are always the weakest of the four quarters. This was accentuated in 2009 by the impact of unusually severe weather in Europe on the Environmental business, making the testing of frozen or snow-covered soil and water almost impossible. There was also a degree of postponement of projects in the Pharma division. As organic growth was still over 5% it is too early to make judgements on any underlying short-term trends in Eurofins' markets. For the moment there is no reason to change expectations and certainly the number of food and health issues and new regulations around the world continues to grow.
A major area for focus in 2009 will be to continue the bringing up to Group standards of the Under Development perimeter. In its new scope (21% of Group revenues in Q1 2009) it reported a loss of -€5.8m in the first quarter, an improvement from -€6.2m for Q1 2008. Even at the current run-rate that would represent good progress from 2008 and the turn-around projects are going ahead as planned and on schedule. At the same time the Up to Standards perimeter reported good growth, at 8.8%, but as usual profitability in the quarter represents only a small proportion of expected full-year results.
In the cash flow statement Capital expenditure (€10.9m Q1 2009, €10.7m Q1 2008) was in line with full year expectations as the Group completes its current investment programme. Planned capex for 2009 is significantly below 2008 levels as a percentage of revenues (8.7% in 2008), so the Group should derive significant cash flow benefits over the course of the year. On the Balance Sheet the financing position is still comfortable, with the cash balance at €104.2m and covenants with lots of head room: Net Debt/EBITDA 2.2x and Net Debt/Equity 0.8x. Net debt at 31 March was €171.8m compared to €158.1m at 31 Dec 2008.
In summary, the first quarter is too minor to be considered meaningful. The feedback from the markets suggests that organic growth will continue to be positive in 2009 and the progress in margins will be driven by the improvements in the Under Development perimeter and that is going according to plan. The Eurofins Group considers itself well-oriented, internally and externally, to make excellent progress in the long term.
(€m) Q1 2009 Q1 2008
Revenues 148.2 139.6
EBITDA 10.7 10.7
EBITAS* 1.6 2.5
Net profit attributable to equity holders -2.9 -1.9
(€m) Up to Standard Under Development
Q1 2009 Q1 2008 Q1 2009 Q1 2008
Revenues 117.1 107.6 31.1 31.9
EBITAS* 7.3 8.8 - 5.8 -6.2
*EBITAS - earnings before interest, tax, amortisation of intangible assets and non-cash charge for stock options
The full first quarter report is available on our website:
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 8,000 staff in more than 150 laboratories across 30 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 providing its customers with high quality services, accurate results in time and, if requested, expert advice by its highly qualified staff.
The Eurofins Group is the world leader in food testing and one of the global market leaders in pharmaceuticals and environmental testing. It intends to pursue its dynamic growth strategy and expand both its technology portfolio and its geographic reach. Through R&D 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 910 251) 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.Information réglementée
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