Eurofins Sceintific sees strong third quarter, brings forward revenue
International laboratory group Eurofins Scientific continued to outperform in its third quarter, releasing results this week that sent its share price up. As a result of this sustained positive performance, the company has decided to bring its revenue objective of €4 billion annually forward by an entire year, to 2019. It also increased its outlook for this year to €3.35 in total revenue – up from its “initial objective of €2.9”.
Eurofins’ share price has increased by 46% so far this year
SOURCE: Yahoo Finance
The company said that revenues grew by 16.2% in the third quarter of the year against the same time last year. This brings its nine-month total to €2.13 billion – a 15.8% increase from the first nine months of 2016. The group was aiming for 5% organic growth this year, but is so-far outperforming, and has delivered almost 6% year to date. For the third quarter in isolation, organic growth was up by 7.4% against the year-ago quarter, which is also a beat against quarters one (+5.7%) and two (+5.7%) of 2017. Growth trends remained strong in almost all of the group’s territories.
To date this year, Eurofins has managed to close an astounding 40 acquisitions, for a total annualized revenue of €600 million. This is a significant overshooting of Eurofins’ stated annual M&A revenue objective (€200 million), and reflects its “strong commitment to expand its network of laboratories and portfolio of advanced analytical tests by acquiring leading laboratories.”
In a press release, the company’s CEO, Dr. Gilles Martin, made the following comment:
“Eurofins’ Q3 results and performance over the first nine months of 2017 reflect the strong underlying trends that characterize the markets in which the Group operates. Our commitment to always develop or acquire advanced technologies and start-up laboratories to continuously expand our state-of-the-art portfolio of analytical services and laboratories has allowed Eurofins to grow rapidly, doubling in revenues every 3 years on average from 2005 to 2016.”
“The Group’s recent acceleration in M&A activity, including our largest acquisition year-to-date of EAG Laboratories, should help consolidate Eurofins’ markets, improve service to our clients and expand the margins of newly acquired firms that gain access to Eurofins’ portfolio of competencies, logistics and clients. These positive Group-wide M&A developments, coupled with our solid NM 2017 performance, have prompted Eurofins’ management to bring forward by 1 year, to 2019, its EUR 4bn 2020 revenue objective. Should this be achieved, Eurofins will have doubled in size once again in only 4 years.”
Dominion holds Eurofins Scientific in its Global Trends Managed Fund.
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