Eurofins: stock slides 5% after FY results
(CercleFinance.com) - As the sharpest faller in the SBF 120 today, the Eurofins Scientific share is down over 5% in Paris after the group published annual results that included a slowdown in growth in the last quarter of 2018.
The company also intends to limit its acquisitions.
Last year, the bioanalysis group's revenues reached 3.8 billion euros. Organic growth, which was around 5% over the first nine months, slowed down at the end of the year (to reach 4.5% over the full-year), due to price cuts and deficiencies that penalised its Clinical Diagnostics division (without this, growth would have exceeded 6%. The fifty or so acquisitions made by the group added 720 million euros to sales, resulting in reported sales growth of 27.2%.
Adjusted EBITDA of 720 million euros improved the group's corresponding margin by 30 basis points to 19%. In published data, net income of 223.9 million euros increased by 3.3%, although in adjusted terms it rose by 19% to 355.8 million euros, or 20.1 euros per share (+15%). The group will offer to raise its dividend by 20% to 2.88 euros.
Finally, after two years of major acquisitions, Eurofins intends to focus on optimising its operational performance, with a view to improving margins and cash generation. Investments in laboratories and IT are also expected to be high up until 2020.
Forecasts predict 2019 and 2020 sales of respectively 4.5 billion euros (against 4.6 billion euros forecast in 23 October) and 5 billion euros, with EBITDA between 850 million and one billion euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The company also intends to limit its acquisitions.
Last year, the bioanalysis group's revenues reached 3.8 billion euros. Organic growth, which was around 5% over the first nine months, slowed down at the end of the year (to reach 4.5% over the full-year), due to price cuts and deficiencies that penalised its Clinical Diagnostics division (without this, growth would have exceeded 6%. The fifty or so acquisitions made by the group added 720 million euros to sales, resulting in reported sales growth of 27.2%.
Adjusted EBITDA of 720 million euros improved the group's corresponding margin by 30 basis points to 19%. In published data, net income of 223.9 million euros increased by 3.3%, although in adjusted terms it rose by 19% to 355.8 million euros, or 20.1 euros per share (+15%). The group will offer to raise its dividend by 20% to 2.88 euros.
Finally, after two years of major acquisitions, Eurofins intends to focus on optimising its operational performance, with a view to improving margins and cash generation. Investments in laboratories and IT are also expected to be high up until 2020.
Forecasts predict 2019 and 2020 sales of respectively 4.5 billion euros (against 4.6 billion euros forecast in 23 October) and 5 billion euros, with EBITDA between 850 million and one billion euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.