Guerbet: 2023 half-year results
Half-year results 2023
Acceleration of activity
- Half-year revenue: €378.6 million, up 2.8% at CER1
- Strong acceleration of activity in the second quarter, up 6.7%
at CER
Profitability in line with
expectations
- EBITDA for the first half-year: €45.9 million, compared to
€50.5 million one year earlier
- The restated EBITDA margin2 amounted to 12.7% of revenue
2023 objectives confirmed
- Revenue: expected growth of more than 5% on a like-for-like
basis and at CER
- Expected restated EBITDA margin2 around 11%, before a return in
2024 to a higher level than in 2021 (14.4%)
Villepinte,
20 September 2023: Guerbet (FR0000032526 GBT), a global
specialist in contrast agents and solutions for medical imaging, is
publishing its consolidated financial statements for the first half
of 2023. Revenue as at 30 June amounted to €378.6 million, up 2%
compared to the same period in 2022. Excluding the unfavourable
foreign currency effect (-€2.9 million), revenue was up 2.8% at
CER1. As anticipated, this change was marked by a sharp
acceleration of activity in the second quarter (+6.7% at CER) after
a slight decline in the first quarter (-1.3%).
1 Constant exchange rates (CER): the exchange
rate impact was eliminated by recalculating sales for the period on
the basis of the exchange rates used for the previous fiscal
year.
2 Excluding extraordinary costs relating to optimisation of the
operational structure and changes in the sales model.
Strong
activity in Asia and Europe; good dynamics for Diagnostic
Imaging
In the EMEA
region, activity increased over the first six months of
the fiscal year by 7.8% at current exchange rates and at CER, in
the wake of the sustained increase in volumes and positive price
effects, which had been accelerating since the beginning of the
year.
In
Asia, the large increase in revenue in the first
half of the year (+16.6% at CER) resulted from a sharp acceleration
in the second quarter (+30.1%). This performance was driven by
China, where the implementation of direct distribution just a year
ago continues to pay off.
The decline in sales
in the Americas region (-15.3% at CER), reflects
in part the optimisation of the customer portfolio and the
production adjustments associated with the launch of EluciremTM. On
the Raleigh site (North Carolina), the situation returned to
normal, with production as of 30 June 2023 higher than in the first
half of 2021, i.e. before the decline in production linked to
recruitment difficulties.
By activity, revenue
for Diagnostic Imaging increased by 3.3% at CER.
It should be noted that X-ray revenue now includes the revenue of
the company Intrasense (€2.2 million in the first half of 2023),
consolidated as of 11 January 2023.
- In MRI, growth of 3.2% at CER was marked by an
acceleration in the second quarter (+5.6%);
- X-ray growth over the first half of the year
(+3.4% at CER) reflected an ever-strong increase in sales of
Xenetix® and a decrease in Optiray® volumes, resulting from price
increases and customer portfolio and production adjustments on the
Raleigh site.
In
Interventional Imaging, sales at CER were down
1.1% in the first half of 2023 due to a base effect in the Asia
region; activity increased (+1.4%) in the second quarter alone.
In millions of eurosConsolidated financial
statements (IFRS standards) |
H1 2022Published |
H1 2023Published |
Revenue |
371.1 |
378.6 |
EBITDA* |
50.5 |
45.9 |
% of revenue |
13.6% |
12.1% |
Operating income |
16.9 |
10.3 |
% of revenue |
4.6% |
2.7% |
Net income |
3.3 |
1.3 |
% of revenue |
0.9% |
0.4% |
Net debt |
251.5 |
342.3 |
* EBITDA = Operating income + net amortisation,
depreciation, and provisions.
Note: Audit procedures have been carried out for
the consolidated financial statements. The certification report is
currently being issued.
Resilience of
the EBITDA margin in a context of inflation
As indicated when the
annual results were published, Guerbet's 2023 operational
profitability is subject to a context in which costs are rising
more sharply than in the previous fiscal year. In the first half of
the year, this context was particularly reflected in a significant
increase in staff costs, in connection with salary inflation but
also with the compensation paid as part of the departure of
employees following the optimisation of the operational structure.
The sales price increases initiated over the past few months, as
well as continued efforts focusing on the cost structure, partially
offset inflationary pressures, limiting the decrease of the EBITDA
margin, which amounted to 12.1%, compared to 13.6% in the first
half of 2022. The restated EBITDA margin, calculated excluding
extraordinary costs relating to optimisation of the operational
structure and changes in the sales model, came to 12.7%, compared
to 13.9% one year earlier.
As of 30 June 2023,
the Group's operating income was €10.3 million, compared to €16.9
million one year earlier.
Net income was €1.3
million over the period. Taxes came to €2.2 million compared to
€11.2 million in the first half of 2022, which was marked by the
accounting of items notified by the tax authorities (for €4.5
million) and additional expenses under IFRIC 23 (€4.4 million).
Financial expenses increased to €3.8 million (compared to €1.2
million one year earlier).
At the end of June
2023, shareholders' equity amounted to €370 million, compared to
€380 million at the end of 2022. Over the same period, the Group's
net debt rose from €270 million on 31 December 2022 to €342 million
at the end of June 2023. This change was related to an increase in
WCR driven by the increase in stocks, due to the prices of supplies
(iodine) as well as the creation of stocks of EluciremTM.
As a reminder, in
late July, Guerbet finalised the refinancing of its debt backed by
a new five-year credit agreement, replacing the one expiring in
March 2024. The amount of this agreement comes to €350 million,
including an undrawn €100 million revolving credit facility.
In addition, in order to support its development and diversify its
sources of financing, Guerbet has announced the signing of
agreements for the issue of €50 million in EuroPP bonds over a
period of six and a half years and the issue of €50 million in
Relance bonds over eight years.
Continued
acceleration of sales in the second half of the year and rebound in
margins in 2024
Guerbet's teams are
committed to the strategic priorities that should enable the Group
to boost its growth in the long term; these include:
- Increasing sales of EluciremTM. Launched in
March 2023 in the United States, this breakthrough MRI innovation
posted initial sales in line with the Group's expectations. In
Europe, marketing authorisation is still expected in the second
half of 2023. For clarification, this process will be carried out
in two stages: in mid-October, the Committee for Medicinal Products
for Human Use (CHMP) should issue its opinion, which must then be
approved by the European commission around mid-December.
- Accelerating the Artificial Intelligence
roadmap. The non-exclusive licensing agreement signed in
June with the company Intrasense, in which the Group now owns a
56.5% stake, will enable the algorithms developed by Guerbet to be
marketed in the near future via the Myrian® platform. As a
reminder, Guerbet has built its AI portfolio around the detection
of liver and bone lesions and pancreatic and prostate cancers. With
regard to this latter disease, the Group's algorithm recently won
the "PI-CAI" challenge organised by a large international
consortium (see press release of 17 July 2023).
In terms of financial
prospects, Guerbet remains confident for the second half of fiscal
year 2023 and beyond. The contrast media market remains driven by
structural volume growth along with positive price effects.
Activity in the coming months will also benefit from the gradual
rise in EluciremTM sales and the sustained growth of Lipiodol®
sales. As previously stated, Guerbet's growth in the second half of
2023 will be more sustained than in the first half. In terms of
profitability, inflationary pressures (in particular for iodine)
will continue to be felt in the second half of 2023.
In this context,
Guerbet confirms that it anticipates revenue growth of more than 5%
on a like-for-like basis and at CER in 2023. The restated EBITDA
margin/revenue ratio is expected to be around 11%, before a return
in 2024 to a higher level than in 2021 (14.4%).
About
Guerbet
At Guerbet, we build
lasting relationships so that we enable people to live better. That
is our purpose. We are a leader in medical imaging worldwide,
offering a comprehensive range of pharmaceutical products, medical
devices, and digital and AI solutions for diagnostic and
interventional imaging. A pioneer in contrast media for 95 years,
with more than 2,600 employees worldwide, we continuously innovate
and devote 10% of our sales to research and development in four
centres in France, Israel, and the United States. Guerbet (GBT) is
listed on Euronext Paris (segment B – mid caps) and generated €753
million in revenue in 2022.
Forward-looking statements
This press release
may contain forward-looking statements based on the assumptions and
forecasts of Guerbet Group management. They involve known and
unknown risks, uncertainties, and other factors that may result in
a significant difference between the Group’s future results,
financial situation, growth and performance and those presented by
these forward-looking statements. These factors include those that
are mentioned in Guerbet’s public documents and available on its
website www.guerbet.com. The Group expressly disclaims any
obligation to publish an update or revision of the forward-looking
statements contained in this press release to reflect future events
or developments.
For more information about Guerbet, please visit
www.guerbet.com
Contacts
Guerbet
Jérôme Estampes, Chief Financial Officer +33.1.45.91.50.00 /
jerome.estampes@guerbet.comlaire Lauvernier, Communications
Director +33.6.79.52.11.88 /
claire.lauvernier@guerbet.com
Actifin
Marianne Py, Financial
Communications +33.1.80.48.25.31 / mpy@actifin.frJennifer Jullia,
Press +33.1.56.88.11.19 / jjullia@actifin.fr
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