Eurofins raises its sales objectives from € 300 M to € 340 M for 2006 and to € 400 M for 2007 – Operating profit up 20% in HY1/ 2006
Brussels/ Nantes, August 29, 2006
In January 2006, Eurofins had significantly raised its growth objectives for the year to reach sales of € 300 million. Over the last few months, Eurofins was presented with the unexpected opportunity to acquire several businesses through accelerated sales processes (the main ones are Focus Bio-Inova and Steins Laboratorium), which will significantly strengthen its geographic coverage and market share. As a result, Eurofins' growth will be substantially higher than forecasted at the beginning of the year. The Group now expects that its reported sales for 2006 should be above € 340 million. This figure includes the effect of the pro-rata consolidation of the announced public offer for the remaining shares of MWG Biotech AG (Germany).
On a fully consolidated pro-forma basis (including the quarters for which some acquired companies will not be consolidated this year) this would correspond to 2006 revenues of above € 360 million. Therefore, Eurofins' growth objectives for 2007 have also been raised from € 360 million to € 400 million.
Eurofins' management is confident that the companies acquired in 2006 will generate substantial value for its shareholders as the geographic and operating fit is excellent. However, unlike companies usually acquired by Eurofins, some of these businesses were significantly loss-making as part of their previous corporate owner. Consequently, some of the larger companies acquired by Eurofins this year will presumably have a negative impact on the Group's consolidated profitability in 2006 and 2007.
At the moment, however, Eurofins maintains its EBIT objective of € 36 million for 2006. This figure will be reviewed together with the publication of the third quarter results. Eurofins' objective to reach 15% operating margin by 2008 remains unchanged as by then, the businesses acquired should be fully contributive.
In the first half-year of 2006, Eurofins' Group sales amounted to € 150.9 million. This corresponds to a growth of 49% compared with HY1/ 2005 (€ 101.0 million).
In spite of the much faster growth, losses of recently acquired companies, the related integration costs, the time it takes to bring new acquisitions to the same cost efficiency standard as the Eurofins Group, the investments to increase production and sales capacities as well as start-up costs in new geographies, the EBITDA reached € 20.2 million (€ 16.0 million in HY1/ 2005) representing an increase of 27% and the operating profit of the Group increased by 20% from € 10.0 million to € 11.9 million in the first half-year of 2006.
IFRS net income improved to € 6.0 million in HY1/ 2006, which corresponds to a growth of 17% (€ 5.2 million in HY1/ 2005). Thus, earnings per share in the first half-year amounted to € 0.38 (€ 0.33 in HY1/ 2005).
For further information please visit www.eurofins.com or contact:
Investor Relations |
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Dr. Stefan Eckhoff (International Investor Relations) Tél : +32-2-766 16 20 E-mail : ir@eurofins.com |
Hugues Vaussy (Investor Relations France) Tél: +33-(0)2-51 83 21 00 E-mail: irFrance@eurofins.com |
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 4,000 staff in more than 70 laboratories across 13 countries, Eurofins offers a portfolio of over 10,000 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 player 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 Euronext in the Paris (ISIN FR0000038259) and Frankfurt ( WKN 910251) Stock Exchanges ( Reuters EUFI.LN, Bloomberg ERSC 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.