Eurofins growth continues as planned in Q1 2007
Brussels/ Nantes, May 31st, 2007
Eurofins is pleased to report on yet another quarter of exceptional growth. Sales increased by 47% to €102.7m (Q1/ 2006 €70.1m), of which over 10% was organic growth. Sales are up in every region and growth has been strong in many areas where Eurofins is developing its business, such as Scandinavia, the British Isles and the Other Countries.
As expected, the results for the first quarter have been affected by a combination of the traditional seasonal weakness and more importantly the impact of our acquisitions last year. Indeed, headline profitability has been impacted by the integration this year of many acquisitions and especially by the loss-making nature of a number of these laboratories (proforma losses for 2006 would have been approximately €12m for these businesses).
The potential in the businesses that currently fall in the category of "under development" is demonstrated particularly well by the step-up in sales but it is too early in the integration process to have had time to reduce significantly their high costs (such as outsourcing or labour costs). Some of these companies have been in the Group for less than six months.
Therefore the traditionally weak Q1 sees the expected first time effect of full consolidation. EBITDA was €8.9m (Q1/ 2006 €9.0m) and operating profit was €3.2m (Q1/ 2006 €5.1m). To put this into perspective, the "up-to-standards" perimeter reported operating profit margins of over 8%, which is broadly in line with historic first quarter performance, and "under development" made an expected loss of €2.4m.
The Company expects to meet the objectives set for its full year results. The acquisitions will be brought up to Group standards over a three to four year period and the Group ROCE* target remains at 20%.
* ROCE = EBITA over last 12 months / average capital employed at start of last 4 quarters.
The full first quarter report is available on our website.
For further information please contact:
Investor Relations
Tel.: +32-2-769 7383
Email: ir@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 5,000 staff in more than 90 laboratories across 24 countries, Eurofins offers a portfolio of over 15,000 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 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.