bioMérieux – 2019 Financial Results

  •  2,675 million in sales for full-year 2019, representing a reported increase of 10.5% and organic growth of 7.2%
  • Strong sales momentum in the fourth quarter, with organic growth of 8.3% driven by sales of molecular biology reagents and microbiology instruments and by the strong dynamic in the Asia Pacific region
  • Contributive operating income before non-recurring items up nearly 7% to €389 million, in line with annual targets
  • Organizational change to consolidate bioMérieux’s unique positioning in the in vitro diagnostics market
  • 2020 financial targets:
    • Organic growth in sales of between 5% and 7% at constant exchange rates and scope of consolidation
    • Contributive operating income before non-recurring items of between €395 million and €415 million at current exchange rates

Alexandre Mérieux, Chairman and Chief Executive Officer, said: “In 2019, bioMérieux delivered results in line with its initial targets, strengthening its position in the in vitro diagnostics market. To enable us to respond even more effectively to health issues and to our customers’ changing needs, with the Board of Directors, we have decided to change the organization around a focused executive team. In the current climate of economic and health-related uncertainties, on the basis of available information, bioMérieux expects to continue to outperform its market in 2020.

MARCY L’ÉTOILE, France--()--Regulatory News:

The Board of Directors of bioMérieux (Paris:BIM), a world leader in the field of in vitro diagnostics, met on February 25 under the chairmanship of Alexandre Mérieux and approved the audited consolidated financial statements for the year ended December 31, 2019.

Consolidated data
In € millions

 

2019

 

2018 (1)

 

% Change
As reported

Sales

 

2,675

 

2,421

 

+10.5 %

Contributing operating income before non-recurring items (2)

 

389

 

364

 

+6.9 %

% sales

 

14,5 %

 

15,0 %

 

Operating income (3)

 

371

 

346

 

+7.2 %

Net income, group share

 

273

 

257

 

+6.2 %

Earnings per share (in €)

 

2,30 €

 

2,17 €

 

 

(1)

 

As from January 1, 2019, the Group has applied IFRS 16 “Leases”. In order to ensure that data for the prior year is comparable, the financial statements for 2018 have been restated (see Appendix 1).

(2)

 

Contributive operating income before non-recurring items corresponds to operating income before non-recurring items relating to the BioFire acquisition and integration and before accounting entries relating to the BioFire purchase price allocation.

(3)

 

Operating income is the sum of contributive operating income before non-recurring items, BioFire purchase price amortization expense and “material, extraordinary and non-recurring items” recognized in “Other non-recurring income and expenses from operations, net”.

SALES

NB: Unless otherwise stated, sales growth is expressed at constant exchange rates and scope of consolidation (like-for-like).

Consolidated sales totaled €2,675 million for full-year 2019, up 7.2% like-for-like from €2,421 million in 2018, in line with the Group’s targets. On a reported basis in euros, sales increased by 10.5% year-on-year, buoyed by a positive currency impact of around €53 million, which primarily reflected a stronger US dollar compared with the previous year. The Invisible Sentinel and Hybiome acquisitions contributed around 110 basis points to growth.

Evolution of sales
In € millions

 

 

 

 

SALES – TWELVE MONTHS ENDED DECEMBER 31, 2018

 

2,421

 

 

Currency effect

 

+53

 

+2.2 %

Changes in scope of consolidation(1)

 

+27

 

+1.1 %

Organic growth (at constant exchange rates and scope of consolidation)

 

+174

 

+7.2 %

SALES – TWELVE MONTHS ENDED DECEMBER 31, 2019

 

2,675

 

+10.5 %

NB: A definition of the currency effect and of changes in the scope of consolidation is provided at the end of this press release.

(1)

 

Acquisition of Astute Medical on April 4, 2018, Hybiome on November 9, 2018, and Invisible Sentinel on February 7, 2019.

ANALYSIS OF SALES BY APPLICATION

Sales by Application

In € millions

Q4
2019

Q4
2019

% change
as reported

% change
at constant
exchange rates
and scope of
consolidation

 

12 months
ended
Dec. 31,
2019

12 months
ended
Dec. 31,
2018

% change
as reported

% change
at constant
exchange rates
and scope of
consolidation

Clinical applications

611.8

553.7

+11.6 %

+8.8 %

 

2,208.3

1,987.8

+11.1 %

+7.7 %

Microbiology

286.0

262.6

+8.9 %

+8.4 %

 

1,026.3

964.9

+6.4 %

+5.3 %

Immunoassays

128.5

116.7

+10.2 %

+1.8 %

 

474.5

441.8

+7.4 %

+0.4 %

Molecular biology

193.9

165.4

+17.2 %

+14.5 %

 

671.5

549.0

+22.3 %

+17.9 %

Other lines(1)

10.5

9.0

+16.7 %

+15.7 %

 

35.9

32.1

+12.0 %

+8.3 %

Industrial Applications(2)

127.8

118.8

+7.6 %

+5.5 %

 

466.7

433.5

+7.7 %

+4.8 %

TOTAL SALES

746.8

672.4

+11.1%

+8.3%

 

2,674.8

2,421.3

+10.5 %

+7.2 %

(1)

 

Including Applied Maths, BioFire Defense and R&D-related revenue arising on clinical applications.

(2)

 

Including R&D-related revenue arising on industrial applications.

  • Clinical application sales, which accounted for approximately 83% of bioMérieux’s consolidated total, rose by nearly 9% year-on-year to €612 million for the fourth quarter of 2019 and by nearly 8% to €2,208 million for the full year.
    • In microbiology, growth in the fourth quarter was driven by a good performance from the VITEK® automated identification and antibiotic susceptibility product line, from BACT/ALERT® VIRTUO® blood culture system and from microbiology lab automation solutions, particularly thanks to a catchup effect in equipment sales.
    • Reported growth in sales of immunoassays came to more than 10% in the fourth quarter, boosted by the consolidation of Hybiome sales in China. The performance of the VIDAS® product line continued to improve in the fourth quarter, with an increase in sales reflecting satisfactory growth in the Middle East and Africa and a slowdown in price decreases in the United States. These favorable factors more than offset the lower volumes sold in Europe.
    • In molecular biology, sales of BIOFIRE® FILMARRAY® reagents grew by more than 20% in the fourth quarter, thanks to all panels. However, growth was impacted by a decline in instrument sales in favor of placements. The number of installations nonetheless remained solid, with nearly 600 new instruments installed, bringing the FILMARRAY® installed base to around 10,400 units. The international roll-out of the product line was particularly robust in 2019, with sales outside the United States representing around 19% of total BIOFIRE® FILMARRAY® sales. For the twelve months to December 31, 2019, sales of the BIOFIRE® FILMARRAY® product line exceeded €600 million.
  • Sales of industrial applications, which represent around 17% of the consolidated total, amounted to €128 million for fourth-quarter 2019. The 5.5% year-on-year increase was driven by a good performance in sales of microbiology equipment and services and by demand for the GENE-UP® molecular biology product line from customers in the food industry. For the twelve months to December 31, 2019, sales came to €467 million, up by nearly 5% from the previous year.

ANALYSIS OF SALES BY REGION

Sales by Region

In € millions

Q4
2019

Q4
2018

% change
as reported

% change
at constant
exchange rates
and scope of
consolidation

 

12 months
ended
Dec. 31,
2019

12 months
ended
Dec. 31,
2018

% change
as reported

% change
at constant
exchange rates
and scope of
consolidation

Americas

333.8

300.2

+11.2 %

+8.8 %

 

1,199.9

1,070.2

+12.1 %

+7.7 %

North America

290.5

260.1

+11.7 %

+7.9 %

 

1,043.3

929.6

+12.2 %

+6.2 %

Latin America

43.2

40.1

+7.8 %

+14.9 %

 

156.5

140.6

+11.3 %

+17.7 %

Europe (1)

272.0

253.3

+7.3 %

+7.0 %

 

961.3

921.6

+4.3 %

+4.4 %

Asia Pacific

141.0

119.0

+18.5 %

+9.8 %

 

513.7

429.5

+19.6 %

+12.1 %

TOTAL SALES

746.8

672.4

+11.1%

+8.3 %

 

2,674.8

2,421.3

+10.5 %

+7.2 %

(1)

 

Including the Middle East and Africa.

  • Sales in the Americas (45% of the consolidated total) reached €334 million in fourth-quarter 2019, an increase of 8.8% over the prior-year period. Sales for the twelve months to December 31, 2019 came to €1,200 million, up 7.7% year-on-year.
    • In North America (39% of the consolidated total), growth in the quarter was primarily driven by strong demand for the BIOFIRE® FILMARRAY® molecular biology product line. In immunoassays, price pressure on procalcitonin assays continued to hamper sales growth in the region, albeit to a lesser extent.
    • Latin America recorded a sharp increase in fourth-quarter sales, led by robust growth in reagent sales in the VIDAS® and BIOFIRE® FILMARRAY® product lines as well as a solid performance in instrument sales across all lines.
  • Sales in the Europe – Middle East – Africa region (36% of the consolidated total) came to €272 million for the fourth quarter, up 7% year-on-year, and to €961 million for the full year, up 4.4% year-on-year.
    • In Europe (30% of the consolidated total), sales growth in the fourth quarter was driven by strong performances in the clinical and industrial microbiology product lines, particularly in Germany, Italy, Spain and the United Kingdom.
    • In the Russia – Middle East – Africa region, sales increase was particularly robust in Russia, Turkey and the Middle East, buoyed by the catchup effect already observed in the third quarter.
  • Sales in the Asia Pacific region (19% of the consolidated total) amounted to €141 million for the fourth quarter of 2019, up around 10% year-on-year on the back of solid performances in China, India and countries in Southeast Asia. This positive momentum was driven by growth in the microbiology product lines, for both clinical and industrial applications. For the twelve months to December 31, 2019, sales in the Asia Pacific region totaled €514 million, representing a year-on-year increase of more than 12%.

CONSOLIDATED INCOME STATEMENT

  • Contributive operating income before non-recurring items
    For the twelve months to December 31, 2019, contributive operating income before non-recurring items rose by 6.9% year-on-year to €389 million, representing 14.5% of sales. The reported figure includes a positive currency effect of around €3 million and a negative scope effect of €12 million stemming from the acquisitions of Hybiome, Invisible Sentinel and Astute Medical. Like-for-like growth in contributive operating income before non-recurring items therefore came to around 9%, despite the unfavorable impact of the €36 million expense recognized in 2019 in respect of bonus plans in the United States that are indexed to the bioMérieux share price (phantom share plans), compared to an income of €7 million in 2018.
    • Gross profit for the year stood at €1,467 million, or 54.8% of sales, up from 53.8% the year before. The increase in gross margin primarily reflects an improvement in the product mix, measures taken to enhance operating efficiency, and greater use of sea freight versus air freight.
    • Selling, general and administrative expenses amounted to €750 million, or 28.0% of sales, compared with 26.6% in 2018. The increase in 2019 is mainly attributable to a step-up in marketing initiatives for the BIOFIRE® FILMARRAY® product line and to provisions relating to the management of the Group’s network of distributors.
    • R&D expenses amounted to €374 million, or 14.0% of sales, compared with €327 million and 13.5% in 2018. The like-for-like increase of around 9% reflects the faster pace of development in microbiology and the additional R&D efforts made to support the BIOFIRE® FILMARRAY® product line.
    • Other operating income amounted to around €46 million for the year, up from €31 million in 2018, due to additional R&D efforts and the resulting increase in the related tax credit, and to a rise in rental income collected from third parties.
  • Operating income
    The depreciation/amortization charged against assets valued at the date of acquisition of BioFire amounted to €18 million in 2019, stable year-on-year. As a result, the Group ended the year with operating income of €371 million, up 7.1% on the €346 million reported in 2018.
  • Net income of consolidated companies
    Net financial expense
    amounted to €23 million in 2019, down from the €26 million expense recorded in the prior-year period. The cost of net debt came to €21 million in 2019, stable year-on-year, and other financial expenses totaled €2.5 million, compared to €4.5 million in 2018.

    The Group’s effective tax rate for 2019 stood at 22.4%, versus a 2018 rate of 20.3% which had benefited from a tax deduction associated with a one-off payment to the US pension fund and the favorable resolution of a tax dispute. In 2019, bioMérieux benefited from the new tax provisions in the United States relating to foreign-derived intangible income (FDII).

    Net income, Group share amounted to €273 million in 2019, up 6.24% from €257 million in 2018.

CASH MANAGEMENT AND FINANCE

  • Free cash flow
    EBITDA1 came to €578 million, or 21.6% of sales, up 6.8% from the €541 million recorded in 2018. The increase reflects growth in contributive operating income before non-recurring items and net additions to depreciation and amortization of operating items and operating provisions.

    Income tax paid amounted to €82 million, up on the €66 million paid in 2018 which had benefited from the reimbursement of a dividend tax claim and the deduction of a one-off payment to the US pension fund.

    Working capital requirement rose by €69 million in 2019. The change was primarily a result of the following factors:
    • Inventories rose €71 million during the year, outpacing growth in sales, following the replenishment of inventories of certain product lines and raw materials.
    • Trade receivables rose slightly, reflecting a slight increase in the receivables collection period of two days compared with 2018.
    • Trade payables increased by €33 million in line with business growth.
    • Other working capital requirement items improved by €26 million as a result of an increase in accrued taxes and payroll liabilities, particularly the provision in relation to bonus plans that are indexed to the bioMérieux share price (phantom share plans) and payments made with regard to a development partnership.

As expected, capital expenditure outlays represented around 10% of sales or €273 million in 2019, versus €226 million in 2018. The increase primarily reflects the work undertaken to boost BioFire’s production capacity in Salt Lake City.

In light of the above, free cash flow came in at €150 million in 2019, compared to around €179 million in 2018.

  • Change in net debt
    Purchases of non-current financial assets, net of disposals, amounted to €48 million in 2019 and primarily reflected the acquisition of Invisible Sentinel Inc. and the increase in the Hybiome shareholding, partly offset by the sale of a non-controlling interest.

    A total of €41 million was paid out in dividends, up slightly year-on-year.

    Consolidated net debt therefore came to €317 million at December 31, 2019, versus €366 million at December 31, 2018, restated for the impact of the first-time application of IFRS 16 (see Appendix 1).

1

 

EBITDA corresponds to the aggregate of contributive operating income before non-recurring items, and operating depreciation and amortization.

DIVIDEND

The Board of Directors will recommend that shareholders at the Annual General Meeting on May 19, 2020 approve a dividend of €0.38 per share. This represents a total payout of €45.0 million, versus a prior-year payout of €41.34 million, and will be paid on June 4, 2020.

HUMAN RESOURCES

At December 31, 2019, the Group had around 12,000 full-time-equivalent employees and temporary staff, compared with 11,200 a year earlier.

ORGANIZATION

  • Change in bioMérieux’s organizational structure to drive a new phase of growth
    Ranked 6th in the world in in vitro diagnostics, bioMérieux has achieved above-market growth for several years and is the number one pure player in this field. To consolidate this unique position, adapt to industry trends and enhance customer focus around business-specific expertise, Chairman and Chief Executive Officer Alexandre Mérieux has decided to change bioMérieux’s organizational structure.

    Effective from March 2, 2020, the Group will be managed by a smaller, more agile executive team, led by the Chairman and Chief Executive Officer. The new organizational structure will comprise two main divisions: one that focuses on clinical customers, such as hospitals and laboratories, and the other dedicated to industrial customers, in the food, pharmaceuticals and cosmetics industries.

    Pierre Boulud, formerly Executive Vice President of the Asia Pacific region, has been appointed Chief Operating Officer in charge of Clinical Operations and will be responsible for all sales, marketing, customer service, strategy, and business development activities.

    These changes represent an opportunity to strengthen synergies in bioMérieux’s portfolio of solutions, so that it can respond even more effectively to its customers’ needs.

SIGNIFICANT EVENTS OF FOURTH-QUARTER 2019

Operating highlights of the year are described in Appendix 2 below.

  • Acquisition of a non-controlling interest in Specific Diagnostics
    bioMérieux signed a partnership agreement in the fourth quarter with Specific Diagnostics, a US microbiology company based in Mountain View, California, which focuses on reducing the time required to diagnose infectious diseases. The company has developed a new technology that speeds up antibiotic susceptibility testing by detecting the volatile organic compounds emitted by microorganisms as they grow.

    bioMérieux participated in Specific Diagnostics’ Series A funding round, alongside other investors. As a result of this transaction, bioMérieux holds around 8% of the share capital of Specific Diagnostics.

SUBSEQUENT EVENTS

  • Submission for FDA clearance of the enhanced BIOFIRE® BCID2 Panel
    bioMérieux announced that it had submitted the BIOFIRE® Blood Culture Identification 2 (BCID2) Panel to the US Food and Drug Administration (FDA) for 510(k) clearance. The new generation of the BIOFIRE® BCID Panel includes 26 bacteria, 7 yeasts, and 10 antimicrobial resistance genes. These comprise emerging pathogens, such as Candida auris, as well as new targets to more accurately identify methicillin-resistant Staphylococcus aureus (MRSA) and other resistant organisms. The improved breadth and performance of the BCID2 panel aims to reinforce BIOFIRE®’s leadership in the diagnosis of bloodstream infections.

2020 OBJECTIVES

In 2020, bioMérieux expects to continue to outperform the in vitro diagnostics market. It has therefore set a target of organic growth in sales of between 5% and 7% at constant exchange rates and scope of consolidation. This objective reflects a more intense flu season in 2020 than in 2019, as well as the uncertainties surrounding the development of the COVID-19 coronavirus epidemic, as estimated as of the date of this communication, in particular its potential impact on the Chinese economy in the first half. As a reminder, China is representing 10% of bioMérieux’s consolidated sales is not manufacturing for export.

In light of its organic growth target, bioMérieux expects to improve its contributive operating income before non-recurring items by between 5% and 10% at constant exchange rates and scope of consolidation. At current exchange rates, this improvement would result in a contributive operating income before non­recurring items of between €395 million and €415 million. This range includes an expected negative currency effect of around €5 to €10 million, the accounting impact of outsourcing the US pension fund, which is expected to result in a one-off expense of around €10 million being recorded in 2020, and the ongoing impact of the US bonus plans that are indexed to the bioMérieux share price (phantom share plans).

INVESTOR PRESENTATION

bioMérieux will hold an investor presentation on Wednesday, February 26, 2020 at 2:30 pm Paris time (GMT+1). The presentation will be conducted in English and will be accessible via conference call or webcast.

Conference call:

France

Europe

United States

+33 (0)1 76 77 22 57

+44 (0)330 336 9411

+1 323-794-2094

Access code: 7083760

 

Webcast: https://globalmeet.webcasts.com/starthere.jsp?ei=1280838&tp_key=e16dcc6b75

INVESTOR CALENDAR

First-quarter 2020 sales

 

April 16, 2020

Annual General Meeting

 

May 19, 2020

Second-quarter 2020 sales and first-half 2020 results

 

September 2, 2020

Third-quarter 2020 sales

 

October 20, 2020

Notes and definitions
The above forward-looking statements are based, entirely or partially, on assessments or judgments that may change or be modified, due to uncertainties and risks related to the Company’s economic, financial, regulatory and competitive environment, notably those described in the 2018 Registration Document. Accordingly, the Company cannot give any assurance nor make any representation as to whether the objectives will be met. The Company does not undertake to update or otherwise revise any forecasts or objectives presented herein, except in compliance with the disclosure obligations applicable to companies whose shares are listed on a stock exchange.

Currency effect: this is established by converting actual numbers at the average rates of year y-1. In practice, those rates are either average rates communicated by the ECB, or hedged rates if hedging instruments have been set up.

Changes in scope of consolidation: these are determined:

- for acquisitions in the period, by deducting from sales for the period the amount of sales generated during the period by acquired entities as from the date they entered the consolidated reporting scope;
- for acquisitions in the previous period, by deducting from sales for the period the amount of sales generated in the months in the previous period during which the acquired entities were not consolidated;
- for disposals in the period, by adding to sales for the period the amount of sales generated by entities sold during the previous period in the months of the current period during which these entities were no longer consolidated;
- for disposals in the previous period, by adding to sales for the period the amount of sales generated during the previous period by the entities sold.

ABOUT BIOMÉRIEUX

Pioneering Diagnostics

A world leader in the field of in vitro diagnostics for over 55 years, bioMérieux is present in 44 countries and serves more than 160 countries with the support of a large network of distributors. In 2019, revenues reached €2.7 billion, with over 90% of international sales.

bioMérieux provides diagnostic solutions (systems, reagents, software and services) which determine the source of disease and contamination to improve patient health and ensure consumer safety. Its products are mainly used for diagnosing infectious diseases. They are also used for detecting microorganisms in agri-food, pharmaceutical and cosmetic products.

bioMérieux is listed on the Euronext Paris stock market.
Symbol: BIM – ISIN Code: FR0013280286
Reuters: BIOX.PA/Bloomberg: BIM.FP

Corporate website: www.biomerieux.com. Investor website: www.biomerieux-finance.com

APPENDIX 1: IMPACT OF THE FIRST-TIME APPLICATION OF IFRS 16 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE BIOMÉRIEUX GROUP AT DECEMBER 31, 2018

IFRS 16 eliminates the distinction between finance leases and operating leases that previously existed for lessees under IAS 17. Only finance leases were previously restated. Lease contracts meeting the definition of leases in IFRS 16 are accounted for as described below, except in the case of the recognition exemptions provided for by the standard (leases with a term of 12 months or less, and/or leases for which the underlying asset is of low value).

At the commencement of the lease, the Group recognizes a right-of-use asset and a lease liability. The asset is shown on a separate line of the balance sheet, while the liability is shown within debt. The lease liability is measured at the present value of lease payments outstanding over the lease term.

In practice, the Group’s analysis of IFRS 16 primarily led to it restating its property and vehicle leases.

The impact of applying IFRS 16 is to increase consolidated net debt by €96.9 million at December 31, 2018.

In millions of euros   31/12/2018
published
  IFRS 16
restatement
  31/12/2018
restated
 
NET SALES  

2,421.3

 

0.0

 

2,421.3

 
Cost of sales

-1,119.1

 

0.1

-1,119.0

GROSS PROFIT  

1,302.2

 

0.1

 

1,302.3

 
OTHER OPERATING INCOME  

31.2

 

0.0

 

31.2

 
Selling and marketing expenses

-480.3

 

0.4

-479.9

General and administrative expenses

-165.2

 

2.0

-163.2

Research and development expenses

-326.9

 

-326.9

TOTAL OPERATING EXPENSES

-972.4

 

2.4

-970.0

CONTRIBUTIVE OPERATING INCOME  

361.0

 

2.5

 

363.5

 
BioFire acquisition's fees and depreciation costs 

-17.5

 

0.0

-17.5

OPERATING INCOME BEFORE NON-RECURRING ITEMS  

343.5

 

2.5

 

346.0

 
Other non-recurring income (expenses)

0.2

 

0.2

OPERATING INCOME  

343.6

 

2.5

 

346.1

 
Cost of net financial debt 

-18.5

 

-2.8

-21.3

Other financial items 

-4.5

 

-4.5

Income tax 

-65.2

 

0.1

-65.1

Investments in associates

0.2

 

0.2

NET INCOME OF CONSOLIDATED COMPANIES  

255.6

 

-0.2

 

255.4

 
Attributable to the minority interests

-1.1

 

-1.1

NET INCOME, GROUP SHARE

256.6

 

-0.2

256.5

Basic net income per share  

2.18

   

2.18

Diluted net income per share  

2.17

   

2.17

APPENDIX 2: 2019 OPERATING HIGHLIGHTS

  • Acquisition of Invisible Sentinel
    On February 7, 2019, bioMérieux announced that it had acquired Invisible Sentinel Inc. Based in Philadelphia (PA), the company develops, manufactures and markets innovative and user-friendly molecular diagnostic tools for the rapid, accurate and reliable detection of pathogens and spoilage organisms in food and beverages.
  • Increase in bioMérieux’s holding in Hybiome from 54% to 67%
    On June 6, 2019, bioMérieux announced that it had increased its holding in Suzhou Hybiome Biomedical Engineering Co. Ltd. This announcement followed the earlier announcement of the acquisition of a majority stake in this company in November 2018. An additional 13% was acquired, increasing bioMérieux’s shareholding in Hybiome to 67%.
  • NEPHROCHECK® biomarkers TIMP-2 and IGFBP7 included in guidelines for perioperative care in cardiac surgery
    On May 13, 2019, bioMérieux announced that NEPHROCHECK® biomarkers (TIMP-2 and IGFBP7), which indicate kidney stress in advance of acute kidney injury (AKI), had been included in the “Guidelines for Perioperative Care in Cardiac Surgery”. These guidelines were published by the ERAS® (Enhanced Recovery After Surgery) Cardiac Society, an international group of leading heart surgeons, anesthesiologists and critical care specialists.
  • Clearance from the Chinese authorities for the BACT/ALERT® VIRTUO® system and resin-based blood culture bottles
    In September 2019, bioMérieux announced that its BACT/ALERT® VIRTUO® automated blood culture system and FAN® Plus bottles had received clearance from the Chinese National Medical Products Administration (NMPA), making them commercially available in China. The BACT/ALERT® VIRTUO® solution includes a fully automated blood culture system and FAN® Plus blood culture bottles using adsorbent polymeric bead technology. It enables faster detection of pathogens by clinical microbiology laboratories, thereby helping to deliver optimal patient treatment.
  • Four new ETEST® products to support the fight against antibiotic resistance
    In 2019, bioMérieux launched four new ETEST® products in the United States, with 510(k) clearance from the US Food and Drug Administration (FDA): ETEST® Meropenem Vaborbactam, ETEST® Imipenem Relebactam, ETEST® Eravacycline and ETEST® Telavancin. Brought to market at the same time as the new antibiotics, the tests are an effective guide for clinicians in their choice of an appropriate, personalized treatment for patients whose condition is of concern and for whom the arrival on the market of a new molecule could be ba therapeutic option when there was none. In 2019, bioMérieux also made its new ETEST® Piperacillin/Tazobactam available in all its markets.
  • Launch of MyShare, the world-wide employee share ownership plan
    In November 2019, bioMérieux employees had the opportunity to acquire existing bioMérieux shares. The launch of this employee share ownership plan was designed to more effectively involve employees in the successes of the Company.

    Approved by the Board of Directors on September 3, 2019, the share ownership plan was available to all eligible employees residing in countries that authorize such operations.

APPENDIX 3: QUARTERLY SALES BY REGION AND APPLICATION

Sales by Application in € millions and % Change in Sales by Application

 

First quarter

Second quarter

Third quarter

Fourth quarter

 

Full-year

 

2019

2018

2019

2018

2019

2018

2019

2018

 

2019

2018

Clinical Applications

525.9

486.3

527.7

474.4

536.6

473.2

611.8

553.7

 

2,208.3

1,987.8

Microbiology

235.9

222.7

245.4

236.6

259.0

243.1

286.0

262.6

 

1,026.3

964.9

Immunoassays

109.1

107.9

119.5

113.9

117.6

103.3

128.5

116.7

 

474.5

441.8

Molecular biology

172.8

148.2

154.1

115.1

151.3

120.0

193.9

165.4

 

671.5

549.0

Other lines (1)

8.1

7.5

8.6

8.8

8.7

6.8

10.5

9.0

 

35.9

32.1

Industrial Applications(2)

106.6

100.8

115.8

107.9

116.5

106.1

127.8

118.8

 

466.7

433.5

TOTAL SALES

632.5

587.0

643.5

582.2

653.1

579.3

746.8

672.4

 

2,674.9

2,421.3

(1)

 

Including Applied Maths, BioFire Defense, and R&D-related revenue arising on clinical applications.

(2)

 

Including R&D-related revenue arising on industrial applications.

 

First quarter

Second quarter

Third quarter

Fourth quarter

 

Full-year

 

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

 

As reported

Like-for-
like(3)

Clinical Applications

+8.2 %

+4.0 %

+11.2 %

+8.1 %

+13.4 %

+10.3 %

+11.6 %

+8.8 %

 

+11.1 %

+7.7 %

Microbiology

+5.9 %

+4.4 %

+3.8 %

+3.2 %

+6.5 %

+5.5 %

+8.9 %

+8.4 %

 

+6.4 %

+5.3 %

Immunoassays

+1.1 %

-4.5 %

+4.9 %

-1.6 %

+13.8 %

+6.7 %

+10.2 %

+1.8 %

 

+7.4 %

+0.4 %

Molecular biology

+16.6 %

+9.7 %

+33.9 %

+29.1 %

+26.1 %

+22.5 %

+17.2 %

+14.5 %

 

+22.3 %

+17.9 %

Other lines (1)

+8.5 %

+3.2 %

-2.6 %

-5.8 %

+28.9 %

+22.7 %

+16.7 %

+15.7 %

 

+12.0 %

+8.3 %

Industrial Applications(2)

+5.8 %

+2.9 %

+7.4 %

+4.6 %

+9.7 %

+6.5 %

+7.6 %

+5.5 %

 

+7.7 %

+4.8 %

TOTAL SALES

+7.7 %

+3.8 %

+10.5 %

+7.4 %

+12.7 %

+9.6%

+11.1 %

+8.3%

 

+10.5 %

+7.2%

(1)

 

Including Applied Maths, BioFire Defense, and R&D-related revenue arising on clinical applications.

(2)

 

Including R&D-related revenue arising on industrial applications.

(3)

 

At constant exchange rates and scope of consolidation.

Sales by Region in € millions and % Change in Sales by Region

 

First quarter

Second quarter

Third quarter

Fourth quarter

 

Full-year

 

2019

2018

2019

2018

2019

2018

2019

2018

 

2019

2018

Americas

296.8

270.6

285.7

246.9

284.3

246.8

333.8

300.2

 

1,199.9

1,070.2

North America

262.1

240.5

246.5

211.2

244.9

210.9

290.5

260.1

 

1,043.3

929.6

Latin America

34.7

30.1

39.2

35.7

39.4

35.9

43.2

40.1

 

156.5

140.6

Europe (1)

223.5

222.1

231.5

227.2

234.6

220.6

272.0

253.3

 

961.3

921.6

Asia Pacific

112.2

94.2

126.3

108.1

134.2

107.8

141.0

119.0

 

513.7

429.5

TOTAL SALES

632.5

587.0

643.5

582.2

653.1

575.3

746.8

672.4

 

2,674.9

2,421.3

(1)

 

Including the Middle East and Africa.

 

First quarter

Second quarter

Third quarter

Fourth quarter

 

Full-year

 

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

As reported

Like-for-
like(3)

 

As reported

Like-for-
like(3)

Americas

+9.7 %

+3.1 %

+15.7 %

+10.9 %

+12.8 %

+9.3 %

+11.2 %

+8.8 %

 

+12.1 %

+7.7 %

North America

+9.0 %

+0.4 %

+16.8 %

+9.8 %

+12.6 %

+7.5 %

+11.7 %

+7.9 %

 

+12.2 %

+6.2 %

Latin America

+15.2 %

+24.6 %

+9.7 %

+17.6 %

+13.7 %

+19.5 %

+7.8 %

+14.9 %

 

+11.3 %

+17.7 %

Europe (1)

+0.6 %

+1.4 %

+1.8 %

+2.3 %

+7.1 %

+6.5 %

+7.3 %

+7.0 %

 

+4.3 %

+4.4 %

Asia Pacific

+19.0 %

+11.6 %

+16.9 %

+10.4 %

+24.0 %

+16.4 %

+18.5 %

+9.8 %

 

+19.6 %

+12.1 %

TOTAL SALES

+7.7 %

+3.8 %

+10.5 %

+7.4 %

+12.7 %

+9.6 %

+11.1 %

+8.3 %

 

+10.5 %

+7.2 %

(1)

 

Including the Middle East and Africa.

(2)

 

At constant exchange rates and scope of consolidation.

APPENDIX 4: BIOMÉRIEUX CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 

CONSOLIDATED INCOME STATEMENT

 
In millions of euros

 

12/31/2019

 

31/12/2018
restated (1)

 
NET SALES  

2,674.8

 

2,421.3

 
Cost of sales

-1,208.2

 

-1,119.0

GROSS PROFIT  

1,466.6

 

1,302.3

 
OTHER OPERATING INCOME  

45.9

 

31.2

 
Selling and marketing expenses

-567.6

 

-479.9

General and administrative expenses

-182.2

 

-163.2

Research and development expenses

-374.3

 

-326.9

TOTAL OPERATING EXPENSES

-1,124.1

 

-970.0

CONTRIBUTIVE OPERATING INCOME  

388.5

 

363.5

 
BioFire acquisition's fees and depreciation costs 

-17.9

 

-17.5

OPERATING INCOME BEFORE NON-RECURRING ITEMS  

370.7

 

346.0

 
Other non-recurring income (expenses)

0.0

 

0.2

OPERATING INCOME  

370.7

 

346.1

 
Cost of net financial debt 

-20.6

 

-21.3

Other financial items 

-2.5

 

-4.5

Income tax 

-77.8

 

-65.1

Investments in associates

0.0

 

0.2

NET INCOME OF CONSOLIDATED COMPANIES  

269.7

 

255.4

 
Attributable to the minority interests

-3.1

 

-1.1

NET INCOME, GROUP SHARE

272.8

 

256.5

Basic net income per share  

2.31

2.18

Diluted net income per share  

2.30

2.17

(1)

 

Comparative data for 2018 have been restated to reflect the first-time application of IFRS 16. The table showing the reconciliation of the published financial statements with the restated financial statements is provided in Appendix 3.

(2)

 

Non-recurring items relating to the acquisition and integration of BioFire, and accounting entries relating to the BioFire purchase price allocation.

CONSOLIDATED BALANCE SHEET

 
ASSETS
(in millions of euros)

 

31/12/2019

 

31/12/2018
restated(1)

 
   
Intangible assets 

508.4

 

526.0

Goodwill

652.5

 

603.0

Property, plant and equipment 

894.7

 

761.4

Right of use

130.5

 

137.7

Financial assets 

41.9

 

66.9

Investments in associates

0.2

 

0.3

Other non-current assets

16.1

 

16.2

Deferred tax assets

99.0

 

78.5

NON-CURRENT ASSETS  

2,343.5

 

2,189.9

 
Inventories and work in progress

494.7

 

418.8

Accounts receivable

552.1

 

491.8

Other operating receivables

61.1

 

63.4

Tax receivable

42.3

 

39.2

Non-operating receivables

13.3

 

12.9

Cash and cash equivalents 

275.0

 

288.3

CURRENT ASSETS  

1,438.5

 

1,314.4

ASSETS HELD FOR SALE  

0.0

 

0.1

 
TOTAL ASSETS  

3,781.9

 

3,504.4

 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
(in millions of euros)

 

31/12/2019

 

31/12/2018
restated(1)

 
   
Share capital 

12.0

 

12.0

Additional paid-in capital & Reserves

1,919.1

 

1,659.5

Net income for the year

272.8

 

256.5

SHAREHOLDERS' EQUITY  

2,203.9

 

1,928.0

MINORITY INTERESTS  

50.7

 

74.0

 
TOTAL EQUITY  

2,254.6

 

2,002.1

 
Net financial debt - long-term 

153.7

 

524.9

Deferred tax liabilities

141.2

 

134.2

Provisions 

62.3

 

47.1

NON-CURRENT LIABILITIES  

357.2

 

706.1

 
Net financial debt - short-term 

438.6

 

129.1

Provisions 

47.0

 

45.0

Accounts payable

211.9

 

179.7

Other operating liabilities

381.1

 

352.2

Tax liabilities

32.3

 

33.5

Non-operating liabilities

59.3

 

56.9

CURRENT LIABILITIES  

1,170.1

 

796.3

LIABILITIES RELATED TO ASSETS HELD FOR SALE

0.0

 

0.0

 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

3,781.9

 

3,504.4

 

(1)

 

Comparative data for 2018 have been restated to reflect the first-time application of IFRS 16.

CONSOLIDATED CASH FLOW STATEMENT

 
In millions euros

31/12/2019

 

31/12/2018
restated(1)

Net income of consolidated companies

269.7

 

255.3

- Investments in associates

0.0

 

-0.2

- Cost of net financial debt

20.6

 

21.4

- Other financial items

2.5

 

4.5

- Current income tax expense

77.8

 

65.0

- Operating depreciation and provisions on assets

189.5

 

177.0

- Non-recurring items and BioFire acquisition's fees and depreciation costs 

17.8

 

17.4

EBITDA (before non-recurring items)

577.9

 

540.4

Other non current operating gains/losses
(w/o exceptional depreciations, assets losses and capital gains/losses)

-0.1

 

0.1

Other financial items
(w/o accruals & disposal of financial assets)

-2.0

 

-4.6

Operating provisions for risks and contingencies

-6.8

 

-47.8

Change in fair value of financial instruments

-1.4

 

0.3

Share-based payments

9.4

 

6.7

Elimination of other gains and losses without any impact on cash or operations

-0.9

 

-45.3

Change in inventories

-71.0

 

-26.9

Change in accounts receivable

-57.3

 

-30.6

Change in accounts payable

32.9

 

13.1

Change in other operating working capital 

26.0

 

36.0

Change in operating working capital (2)

-69.4

 

-8.4

Other non operating working capital

2.1

 

1.8

Change in non-current assets

0.4

 

-1.5

Other cashflows from operation

-66.9

 

-8.1

Income tax paid

-81.6

 

-65.8

Cost of net financial debt

-20.6

 

-21.4

Net cash flow from operations

407.9

 

399.8

Purchase of property, plant and equipment

-272.5

 

-226.4

Proceeds on fixed asset disposals

17.1

 

5.4

Purchase of financial assets / Disposals of financial assets

-2.4

 

0.0

FREE CASH FLOW (3)

150.1

 

178.8

Purchase / Disposals related  to minority interests

48.4

 

-5.4

Impact of changes in the scope of consolidation

-72.8

 

-186.7

Net cash flow from (used in) investment activities

-282.2

 

-413.1

Purchases and proceeds of treasury stocks

0.0

 

-22.3

Dividends to shareholders

-41.3

 

-40.2

Change in confirmed financial debt

-69.2

 

105.5

Variation of interests without taking or loss of control

-23.5

 

0.0

Net cash flow from (used in) financing activities

-133.9

 

43.0

Net change in cash and cash equivalents

-8.2

 

29.7

   
Net cash and cash equivalents at the beginning of the year

278.2

 

260.4

Impact of currency changes on net cash and cash equivalents

-6.1

 

-11.8

Net cash and cash equivalents at the end of the year 

264.0

 

278.2

(1)

 

Comparative data for 2018 have been restated to reflect the first-time application of IFRS 16.

(2)

 

Including additions to and reversals of current provisions.

(3)

 

Available cash flow is defined as cash flow from operating activities plus cash flow from investing activities, excluding net cash and cash equivalents from acquisitions and disposals of subsidiaries.

 

Contacts

Investor Relations
bioMérieux
Sylvain Morgeau
+33 (0)4 78 87 51 36
investor.relations@biomerieux.com

Media Relations
bioMérieux
Aurore Sergeant
+33 (0)4 78 87 21 99
media@biomerieux.com

Image Sept
Laurence Heilbronn
+33 (0)1 53 70 74 64
lheilbronn@image7.fr

Claire Doligez
+33 (0)1 53 70 74 48
cdoligez@image7.fr

Contacts

Investor Relations
bioMérieux
Sylvain Morgeau
+33 (0)4 78 87 51 36
investor.relations@biomerieux.com

Media Relations
bioMérieux
Aurore Sergeant
+33 (0)4 78 87 21 99
media@biomerieux.com

Image Sept
Laurence Heilbronn
+33 (0)1 53 70 74 64
lheilbronn@image7.fr

Claire Doligez
+33 (0)1 53 70 74 48
cdoligez@image7.fr