Eurofins sees solid first half of 2017
Global laboratory group Eurofins Scientific, a market leader in the food and pharmaceutical testing industry, reported solid earnings for the first half of 2017. Released yesterday morning, the figures show that Eurofins’ long standing strategy of pursuing growth through acquisition is not slowing down: in the first six months of the year alone, the company acquired 29 smaller businesses. That’s significant, as it means it passed its M&A target for the year in the first half alone!
Of those acquisitions, 22 saw consolidation within the period and contributed to growth. But acquisitions are not the company’s only route to growth – despite its massive size and market share, Eurofins was able to deliver “about 6%” of organic growth against a tough comparable period in 2016.
Eurofins has seen its share price appreciate by 37% so far this year
Source: Yahoo Finance
Eurofins reported that revenue rose by 15.6% against the year-ago period, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising by a similar amount over the six months (15.5%). As a result of these strong figures, management reiterated its guidance for the rest of the year, and expects to deliver €2.9 billion in revenue and €800 million in EBITDA.
Eurofins’ CEO, Dr. Gilles Martin, said: “In H1 2017, we have again made big strides towards creating the best of breed operating platform in our industry. The progress made in H1 2017 reflects the hard work that has been done to expand our unique network of laboratories, both organically and through an acceleration of M&A. I am particularly proud of our achievement of opening 30 start-up laboratories during the half year, which represents over one third of the 87 that we have now opened since the beginning of our third start-up program in 2014.
As a global network of world-class laboratories, we are creating a unique portfolio of technologies and service delivery platforms that is able to offer a market leading level of service to our clients, and provides a solid base for our future growth. I believe that in H1 2017 we have made decisive progress in building a formidable highly innovative global laboratories platform to deliver long-term sustainable growth.”
Dominion holds Eurofins Scientific in its Global Trends Managed Fund.
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