LUXEMBOURG--(BUSINESS WIRE)--Regulatory News:
Comment from the CEO, Dr. Gilles Martin: “The Group’s good performance in the first quarter of 2018, despite the strong comparable organic growth of 7% in Q1 2017, allows us to remain positive that we should achieve our 2018 objective of generating EUR 3.7bn revenues*. Our on-going strategic investments including the development and deployment of the Group’s latest generation proprietary IT systems, the recent acceleration in our laboratories start-up programme, the substantial enlargement of our major laboratory campuses, as well as the significant expansion of our technological portfolio and geographical footprint through strategic acquisitions, also reinforce our confidence of achieving our recently-upgraded mid-term objective of delivering EUR 4bn revenues* by 2019. This objective is based on achieving at least 5% organic growth and EUR 200m revenues acquired each year at mid-year.”
|EUR m||Q1 2018||Q1 2017||% Growth||
|Eurofins Group Revenues||839||685||23%||ca. 4%||-5%|
Overall, beyond the impact as expected of lower growth in our Clinical Diagnostics activities, which however exhibit expanding profitability, two exceptionally large contracts with pharmaceutical companies accounted for in Q1 2017 and delays in the start of a large laboratory development contract with a government have negatively affected Q1 2018 organic growth. We believe these contract effects to be specific to Q1.
North America remains the largest region for Eurofins representing about 32% of total Group revenues in Q1 2018, followed by France with about 22% of total Group revenues, ahead of Germany which generated almost 12% of total Group revenues. Benelux, the UK & Ireland, and the Nordic countries each contributed between 6% and 7% to Q1 2018 revenues.
Most of the Group’s businesses continue to deliver robust growth across all geographies thanks to the Group’s on-going investments and efforts to build a state-of-the-art network of laboratories aimed at achieving competitive advantage and sustainable growth. North America, Germany, Belgium & the Netherlands, Central and Eastern Europe, as well as many new markets (Chile, China, Taiwan, Vietnam), delivered sustained organic growth in-line or above the Group’s 5% objective. This robust performance was mostly driven by positive developments in Food testing, BioPharma product testing and Material Sciences in these geographies.
Despite strong performance across most business lines (with a strong performance for our Agrosciences and Environment businesses), organic growth in France was below the Group’s average mostly because, as expected, testing revenues in Clinical Diagnostics Services stay almost constant. Organic growth in the UK & Ireland was negative as a whole, impacted by the sites-reorganization of our BioPharma and Food testing activities following recent acquisitions. The Nordic European countries posted a mixed first quarter, under the Group average, with solid organic growth in Norway and Finland, but weaker growth in Denmark and Sweden in part due to a particularly harsh winter this year in Scandinavia.
*at constant 2017 currencies
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Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) - non-IFRS measure calculating the growth in revenues during that period between 2 successive years for the same scope of businesses using the same exchange rates but excluding discontinued operations.
For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have been consolidated in the Group's income statement of the previous financial year (Y-1). Revenue contribution from companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been consolidated as from 1st January Y-1. All revenues from businesses acquired since 1st January Y are excluded from the calculation.
Notes for the editor:
Eurofins – a global leader in bio-analysis
Eurofins Scientific through its subsidiaries (hereinafter sometimes “Eurofins” or “the Group”) believes it is the world leader in food, environment and pharmaceutical products testing and in agroscience CRO services. It is also one of the global independent market leaders in certain testing and laboratory services for genomics, discovery pharmacology, forensics, CDMO, advanced material sciences and for supporting clinical studies. In addition, Eurofins is one of the key emerging players in specialty clinical diagnostic testing in Europe and the USA. With over 35,000 staff in more than 400 laboratories across 44 countries, Eurofins offers a portfolio of over 150,000 analytical methods for evaluating the safety, identity, composition, authenticity, origin and purity of biological substances and products, as well as for innovative clinical diagnostic. The Group objective is to provide its customers with high-quality services, accurate results on time and expert advice by its highly qualified staff.
Eurofins is committed to pursuing its dynamic growth strategy by expanding 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 and analytical chemistry 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 expanding demands of regulatory authorities around the world.
The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP).
This press release contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgment of Eurofins Scientific’s management 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 information available to the Company’s management as of the date of publication, but no guarantee can be made as to their validity.