Eurofins’ 2016 Budget process highlights Q4 2015 growth close to 50% and strong outlook for 2016.
November 24 2015 - 11:27AM
Business Wire
Regulatory News:
Over the past 3 weeks, Eurofins’ (Paris:ERF) leadership
conducted its 2016 Budget exercise. Meetings with management of the
main Eurofins companies around the world were very encouraging.
After a good month of October, with growth trends in line with Q3
2015, and positive outlook by management of most group companies,
it appears that reported revenue growth for Q4 2015 could be close
to 50% compared to Q4 2014. This would mean that the revenue
objective of EUR 1.9bn for 2015, raised for the second time as
recently as October 26th may be exceeded. Should current trends
continue, Group revenues could come in close to EUR 1.94 bn in
2015. This would represent 7% more revenues in Q4 2015 than the EUR
553m corresponding to the EUR 1.9bn objective set recently.
Outlook for 2016 appears positive across businesses and
geographies so that the annual organic growth objective of 5% set
for the next 5 years as communicated in the press release of
October 19th could well prove to be conservative, at least in
2016.
The Group has, or will complete the vast majority of its
laboratory infrastructure investments by the end of 2016 so that it
will be equipped with very effective platforms to compete in its
markets and provide clients with an unequalled level of service.
This, combined with the 35 startup laboratories coming on stream by
the of end 2016, and a number of new exclusive tests out of its
R&D, as well as significant strengthening of Eurofins’ top
leadership team with strong experienced leaders, bode well for
continued strong organic growth beyond 2016.
Eurofins’ M&A pipeline also appears to be very large at the
moment so that at least for 2016, the objective to add EUR 200m
revenues per year through acquisitions could be easily achievable
with targets of high quality and mostly strong profitability. It
could even be exceeded as several large bolt-on assets within
Eurofins’ areas of focus are, or are likely to become available in
the next few quarters, which could contribute to strengthening
Eurofins’ leading global positions in its markets, as well as
provide future growth opportunities and returns well above its cost
of capital. Of course, Eurofins intends to continue to follow a
very disciplined approach to acquisitions, and to only carry out
such if the Group’s management is convinced that they will provide
very good returns on the invested capital, and not stretch its
balance sheet to inappropriate levels.
Notes for the editor:
Eurofins – a global leader in bio-analysis
Eurofins Scientific is the world leader in food, environment and
pharmaceutical products testing. It is also one of the global
market leaders in agroscience, genomics, discovery pharmacology and
central laboratory services. In addition, Eurofins is one of the
key emerging players in specialty clinical diagnostic testing in
Europe and the USA.
With 20,000 staff in around 200 laboratories across 38
countries, Eurofins offers a portfolio of over 130,000 reliable
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 provides 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).
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’ 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.
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For more information:www.eurofins.comEurofins
Investor Relations+32-2-766 1620ir@eurofins.com
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