Eurofins Scientific SE

ERF

Equity

ISIN FR0014000MR3 / Valor 58317129

Euronext - Euronext Paris (2024-11-21)

EUR 46.36+1.09%

Eurofins Scientific SE
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About company

Eurofins Scientific SE is a prominent global entity in the bio-analytical testing sector, offering a wide array of services across various industries including food, environmental, pharmaceutical, and cosmetic product testing. The company is also recognized for its contributions to discovery pharmacology, forensics, advanced material sciences, agroscience contract research, genomics, clinical study support, BioPharma contract development and manufacturing, and specialty clinical diagnostic testing in Europe and the USA. With approximately 62,000 employees, Eurofins operates a vast network of over 1,000 companies in 62 countries, managing more than 900 laboratories. It provides over 200,000 analytical methods aimed at ensuring the safety, identity, composition, authenticity, origin, and purity of biological substances and products. Eurofins prides itself on delivering high-quality services, accurate results, and expert advice through its highly qualified staff, leveraging the latest developments in biotechnology and analytical chemistry to meet the rigorous quality and safety standards of its clients and regulatory authorities worldwide.

Summarized from source with an LLMView SourceSector: Healthcare

Revenue Performance

In the second quarter of 2023, Eurofins Scientific SE reported total revenues of €3,209 million, reflecting a year-on-year decline of 5.9%. This decrease was primarily due to a significant drop in revenues from COVID-19 testing and reagents, which fell to less than €20 million in H1 2023 from over €470 million in H1 2022. Despite this, the Core Business activities excluding COVID-19 testing and reagents saw a robust organic growth of 7.0% in H1 2023 compared to H1 2022.

Adjusted EBITDA

Eurofins Scientific SE's adjusted EBITDA for the first half of 2023 was €640 million, representing 19.9% of total revenues. This was a decline from €829 million (24.3% of revenues) in H1 2022. The decrease was mainly attributed to the sharp reduction in COVID-19 related revenues and inflationary pressures. However, the company continues to focus on long-term value creation and maintaining a sound capital structure.

Free Cash Flow

In H1 2023, Eurofins Scientific SE generated a Free Cash Flow before investment in owned sites of €125 million, down from €306 million in H1 2022. The reduction was primarily due to lower EBITDA and ongoing net capital expenditures aimed at capacity expansion, start-ups, and the development of bespoke IT solutions. Despite this, the company remains committed to its strategic growth initiatives.

Net Profit

Eurofins Scientific SE reported a net profit of €151 million for the first half of 2023. The company's balance sheet remains strong, with a financial leverage ratio (net debt to last 12 months adjusted pro-forma EBITDA) of 1.9x, consistent with the end of 2022. Eurofins has no major financing requirements until July 2024, ensuring financial stability in the near term.

Future Outlook

Looking ahead, Eurofins Scientific SE anticipates sustaining its strong organic growth momentum through the second half of 2023. The company expects to fully compensate for the temporary revenues from COVID-19 testing and reagents by 2024. Eurofins plans to continue its efforts in technological innovation, particularly in automation and digitalization, to enhance service quality and cost efficiency. The company remains confident in achieving its FY 2023 and FY 2027 objectives.

Summarized from source with an LLMView Source

Key figures

-10.3%1Y

-57.9%3Y

-1.61%5Y

Performance

35.4%1Y

33.8%3Y

34.2%5Y

Volatility