Eurofins saw “solid” 2018, revenue +27%
Global laboratory group Eurofins Scientific reported full-year 2018 results this week that sent its share price up. The company has had another year characterised by heavy M&A activity, investing “about” 1.2 billion euros and closing 50 acquisitions. It also opened 15 new “start-up” laboratories, bringing its total up to 145 since starting the project in 2000 (the last 102 of which have all been opened in the past five years). The company’s CEO, Dr Gilles Martin, described 2018 as a “pivotal year” for the company, and said Eurofins would now start to pull back from further acquisitions.
After some last-minute doubts on the part of investors, Eurofins’ earnings sent the share price back up
Source: Yahoo Finance
For the full year, Eurofins Scientific reported revenues of 3.78 billion euros. That’s a 27% jump from 2017’s figure of 2.97 euros. It also saw incredibly strong performance on earnings, reporting an increase of 15%, year on year, to 20.11 euros per adjusted share.
In a press release, Dr Martin said: “2018 was a pivotal year for Eurofins as the Group made very significant progress towards the objectives of its five year 2015-2020 plan to build a 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 competitive advantage, profitability and cash flow generation to benefit its long-term oriented shareholders for years to come.”
“From a financial perspective, the exceptional M&A activity of the last two years and subsequent integration efforts as well as the heavy investments into building an unmatched state-of-the-art laboratory platform (laboratory buildings, start-ups and IT) with significant scale advantages are still weighing on the margins and cash flow generation. In 2019 and 2020, the focus for the Group will be less on M&A, as most strategic acquisitions have been completed, and much more on finalising those internal investments and making progress towards operational excellence, and thus on beginning to improve profitability, cash flow and return on investment.”
For 2019, Eurofins has predicted revenues of 4.5 billion euros, to rise to 5 billion euros in 2020.
Dominion holds Eurofins Scientific in its Global Trends Managed Fund.
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