Eurofins has ‘best year ever’ on ‘sustained growth momentum’
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Eurofins has ‘best year ever’ on ‘sustained growth momentum’

French laboratory analysis group Eurofins Scientific is the global market leader in laboratory testing solutions for the pharmaceutical, food, and consumer industries – and the company’s just logged its “best year ever”! 2016 saw it deliver on recently upgraded business objectives and sustain an impressive growth momentum into 2017.

The company saw over 9% organic growth in 2016 from the previous year, its best result since the 2008 recession, with an adjusted EBITDA margin of 18.9%. It displayed solid cash generation capabilities, with a 40% increase in free cash flow from 2015. It also completed a monumental 27 acquisitions throughout the year, providing more avenues for growth over the coming months. In light of these strong results, the group reiterated its 2017 guidance: revenue of €2.9 billion, adjusted EBITDA of €550 million, and 5% organic growth.

Eurofins has risen 30% over the past 12 months

eurofins

SOURCE: Yahoo Finance

Speaking to the strength of these results, the group’s CEO, Dr. Giles Martin, said:

“I am pleased to report another excellent set of results in 2016 from Eurofins, with organic growth nearly double our annual objective. In 2016, we made significant progress towards both our financial and operational objectives. With 89% of Group revenues now generating 21.3% EBITDA margin, Eurofins is able to continue investing for future growth such as the roll-out of multiple start-up laboratories in high-growth markets, as well as deliver profit improvements (+50bp expansion in reported EBITDA margin), and earnings expansion (+91% uplift in reported EPS).

Operationally, we continue to make steady progress on key initiatives including the addition of 46,000m2 of state-of-the-art laboratory surface in 2016 alone, development and commercialization of many innovative tests to better serve our clients, internal development of tailor-made IT solutions that should further elevate the Eurofins laboratory network ahead of its peers, and the roll-out of over 20 new start-up laboratories in 2016.”

Disclosure
Dominion holds Eurofins Scientific in its Global Trends Managed Fund.


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