RESULTS FOR THE FIRST HALF OF 2023
Solid performance of Core Business and acceleration of strategic deployment
- First positive effects of the GenDx acquisition completed in
October 2022 :- Strong half-year sales growth: core business up 37%
- Share of proprietary products up at 30% of sales
- Increased internationalization, with 35% of sales generated outside
France - Gross margin1 maintained at a high level (46.5% vs 48.5%)
- EBITDA1 margin at 23% in a context of intensified R&D
- Robust financial position
The sharp rise in the share of proprietary products, the internationalization of our activities and the implementation of synergies between the Group's various entities should continue to fuel the virtuous dynamics underway, in terms of both business growth and earnings.
In €m | % change | |||
In vitro diagnostics & R&D products revenues | 59.2 | 83.7 | -29% | |
Of which core business revenues | 59.2 | 43.0 | +37% | |
Operating subsidies and other revenues | 0.2 | 0.6 | - | |
Total revenues | 59.4 | 84.3 | -30% | |
Cost of goods sold | -31.8 | -43.4 | -27% | |
Adjusted gross margin1 | 27.5 | 40.9 | -33% | |
Gross margin | 24.0 | 40.9 | ||
R&D expenses | -3.1 | -1.4 | +121% | |
Marketing and sales expenses | -7.8 | -8.9 | -12% | |
G&A expenses | -5.4 | -6.3 | -14% | |
Amortisation of intangible assets acquired through business combinations | -5.8 | -1.0 | - | |
Amortisation of goodwill | -1.4 | -1.4 | - | |
Operating result | 4.1 | 22.0 | - | |
Adjusted operating result3 | 11.2 | 24.4 | -54% | |
Adjusted EBITDA1 | 13.4 | 26.0 | -49% | |
Financial result | -1.3 | 0.4 | - | |
Extraordinary result | 0.1 | -0.1 | - | |
Taxes | -0.7 | -3.1 | -77% | |
Net result | 2.2 | 19.2 | - | |
Adjusted net result3 | 9.4 | 20.6 | -54% | |
Cash before DID acquisition advance (28.06.23) | 89.0 | 85.9 | ||
Financial debt excluding leasing | 101.0 | 108.0 | ||
Shareholders’ equity | 174.9 | 172.7 |
Strong growth in core activities
In transplantation, the Group is successfully pursuing its previously announced strategy of replacing its historical distribution contract for One Lambda tests with its own products, i.e. those of its subsidiary GenDx, whose innovative proprietary tests are gradually replacing the distribution products, with a very positive impact on the Group's gross margin.
The three main effects of the acquisition of GenDx are:
- a very significant increase in sales generated by proprietary products, which share reached 30% of total sales compared with 18% of core business sales in 2022,
- a strong growth in international sales, which will account for 35% of sales in the first half, compared to 25% of core business sales in 2022, and
- a gross margin1 maintained at a high level, 46.5%, in line with the previous year's figure for the same period (48.5%), which included the exceptional activity linked to COVID, a major contributor to profitability. This margin is significantly higher than the 33.8% achieved by the Group in 2019 before the start of the pandemic. Gross margin is adjusted to exclude the non-recurring reversal of the value identified in the purchase price allocation (PPA) and corresponding to the inventory of products manufactured by GenDx at the time of the acquisition and sold since.
High EBITDA1 margin of 23% against a backdrop of R&D intensification and inflation
At
In line with the Group's strategy of increasing the share of proprietary products, R&D expenditure rose to €3.1m from €1.4m a year earlier, with the integration of GenDx's molecular biology development activities. Thanks to this acquisition, the Group now has a mature R&D and bioinformatics team, renowned in the field of NGS (new generation sequencing).
Conversely, marketing and sales costs fell by around €1m to €7.8m due to the decline in COVID business in
EBITDA reached €13.4m, giving an EBITDA margin of 23%. By way of comparison, in 2019, before the start of the pandemic, the Group posted EBITDA of €7m, representing 12% of sales.
Operating profit was €4.1m, due to non-cash and mostly non-recurrent items: reversal of the value of inventory allocated to the PPA (€3.5m), amortization of intangible assets arising from the PPA, mainly relating to GenDx, and amortization of goodwill. Adjusted for their impact, operating profit reached €11.2m.
Interest expense on the Group's borrowings, which was kept under control thanks to the interest rate hedging contracts put in place by the company, was partially offset by interest generated by cash investments, resulting in net interest expense of only €1.3m.
After a tax expense of €0.7m, net profit amounted to €2.2m at
11.4m cash flow from operations and very limited financial debt
With the advance fund transfer for the DID acquisition,
Accelerating strategic deployment
The Group is successfully pursuing its strategy of targeted geographic and technological expansion, with the ambition of becoming a major international company in the specialty diagnostics market, offering its customers a comprehensive offering based on molecular diagnostics with its own solutions and those of its partners.
With 30% of proprietary products and 35% of its sales outside
Next financial meeting
2023 FY revenues:
About For more information, please visit: www.eurobio-scientific.com The company is publicly listed on the Euronext Growth market in Euronext Growth BPI Innovation, PEA-PME 150 and Next Biotech indices, Euronext European Rising Tech label. Symbol: ALERS - ISIN Code: FR0013240934 - Reuters: ALERS.PA - Bloomberg: ALERS:FP |
Contacts |
Groupe Eurobio Scientific Anne-Sophie Hérelle, Deputy CEO Finance & IT Tel. +33(0) 1 69 79 64 80 | Calyptus Investors Relations Tel. +33(1) 53 65 68 68 - eurobio-scientific@calyptus.net |
1 Adjusted for the reversal of the value of inventory (€3.5m) allocated to the PPA related to GenDx acquisition and sold since then - non-recurring
2 The auditing procedures of the accounts by the statutory auditors are still in progress.
3 Adjusted (i) for the non-recurring reversal of the value of inventory (€3.5m) allocated to the PPA related to GenDx acquisition and sold since then, (ii) the amortization of intangible assets allocated to the PPA and (iii) goodwill amortization
Attachment
- 231011CP_Eurobio_Scientific_RS2023_ENvFdef
© OMX, source