Eurofins raises guidance again after strong third quarter and successful spate of acquisitions
Last Tuesday saw Eurofins Scientific, the market leading laboratory group, raise its earnings expectations for the second time this year on the back of strong third-quarter results and a spate of successful acquisitions. Last year was a bumper year in regards to the latter through which the company added 60 businesses – including 30 laboratory start-ups. Three of those acquisitions (EAG Laboratories, Covance Food Solutions, and TestAmerica) are amongst the largest that Eurofins has ever embarked on.
Eurofins Scientific’s share price appreciated by 3% over the last 5 days
Source: Yahoo Finance
The company said that revenues rose by 30.6% for the three months ended in September 2018, taken against the same period in the previous year. Speaking to the strength of those results, Eurofins’ CEO, Dr. Gilles Martin, made the following comment in a press release:
“I am very pleased with the developments of the Group for the first nine months of the year. We remain focused on delivering our five-year expansion plan to build a unique, hard to replicate global testing laboratory platform by 2020. Our sustained organic growth this year, shown again in Q3, is a clear consequence of our strong market position and the quality of our infrastructure and teams.”
“This enabled us to once again raise our objectives for 2020. After 2020, when Eurofins’ five year infrastructure development plan will have come to completion, the company should be able to leverage its unique global network of state-of-the-art laboratories, market leadership positions, scale and scientific excellence to offer even better, faster, more cost effective and more differentiated services to its clients and as a result significantly improve its market share, profitability and cash flow generation to benefit its long-term oriented shareholders for years to come.”
In its second guidance update of the year so far, Eurofins said that it now expects to see revenues of 4.6 billion euros for 2019, and revenue of 5 billion euros in 2020.
Dominion holds Eurofins Scientific in its Global Trends Managed Fund.
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