A year that has lived up to expectations
- Objective of a sales turnaround after the CMDS acquisition achieved. Slight growth in revenue expected in 2017 at constant exchange rates
- EBITDA at constant exchange rates in line with expectations
Villepinte, March 29, 2017 - Guerbet (FR0000032526 GBT), a global specialist in contrast agents and solutions for medical imaging, is publishing its consolidated and audited annual results for 2016.
On March 28, 2017, the Board of Directors approved the financial statements for the period ended December 31, 2016.
| In millions of Euros Consolidated financial statements (IFRS) | 2016 | 2015 Restated (b) | 2015 published |
| Revenue | 775.8 | 488.7 | 488.7 |
| EBITDA (a) | 106.3 | 88.3 | 84.4 |
| % of revenue | 13.7% | 18.1% | 17.3% |
| Operating Income | 54.6 | 58.6 | 56.2 |
| % of revenue | 7.0% | 12.0% | 11.5% |
| Net income | 28.9 | 39.2 | 39.9 |
| % of revenue | 3.7% | 8.0% | 8.2% |
| Net debt | 301.8 | 287.8 | 287.8 |
(a) EBITDA = Operating income + allowance for amortization, depreciation and provisions (b) Details of restatements shown in the table below
| In millions of Euros Consolidated financial statements (IFRS) | 2016 Before impact of PPA* and CIR** | 2016 | 2015 Restated | 2015 Published |
| Other operating income and expenses (1) | 255.8 | 251.5 | 1.1 | (2.8) |
| EBITDA | 102.0 | 106.3 | 88.3 | 84.4 |
| Allowance for depreciation (2) | 37.3 | 49.2 | 28.3 | 26.8 |
| Operating Income | 62.2 | 54.6 | 58.6 | 56.2 |
| Income tax (3) | 25.7 | 18.1 | 21.6 | 18.4 |
| Net Income | 37.5 | 28.9 | 39.2 | 39.9 |
* PPA : Purchase Price Allocation ** CIR : Crédit Impôt Recherche (Research tax credit) (1) 2015: reclassification of the Research Tax Credit (application of IFRS 20) + impact of the PPA for the acquisition of CMDS (1) 2016: reclassification of the Research Tax Credit (application of IFRS 20) (2) 2015 and 2016: impact of the PPA for the acquisition of CMDS (3) 2015 and 2016: reclassification of the Research Tax Credit (application of IFRS 20) + impact of the PPA for the acquisition of CMDS.
Objective of a sales turnaround after the CMDS acquisition achieved
The revenue published by the Group for 2016 stands at €775.8 million, up 58.7% on the revenue published in 2015. This growth figure includes a negative currency impact of €13.0 million. At constant exchange rates and on a like-for-like basis, the Group posted stable sales of €788.8 million, in line with the objective announced. The main challenge in 2016 was to successfully turn around the falling sales of the activity bought at the end of 2015.
EBITDA at constant exchange rates in line with expectations
2016 was dedicated to integration, the priorities being to reshape the sales structures and reposition the product/market offering to ensure that the revenue target was met.
The Group also met its target of partially recouping its integration costs (€29 million) from the first synergies arising from the acquisition. The positive change in the product mix, the continuous improvement of industrial processes and the reorganizing of the purchasing and logistics flows resulted in EBITDA of €106.3 million. At constant exchange rates, and excluding non-recurring items relating to integration, EBITDA amounts to €142.9 million, or 18.1% of sales.
After the allowance for amortization, depreciation and provisions, Operating Income comes to €54.6 million, including an €11.9 million negative impact due to allocating the acquisition price.
Net income after financial expenses totals €28.9 million.
A healthy balance sheet and a 30% increase to €0.85 per share for the distributed dividend
The Group's shareholders' equity stands at €314.8 million, compared with €283.8 million in 2015. Guerbet has debt of €301.8 million, representing a net debt/EBITDA ratio of 2.8, keeping it within its covenant of 3.7.
The Board of Directors will propose a dividend of €0.85 per share, up 30%, to the shareholders at the General Meeting on May 19, 2017.
2017: return to growth
In 2017, the Group's main product (Dotarem ® ) will develop in a new environment due to i) the arrival of a new generic in Europe and ii) the recommendation by the European Medicines Agency's PRAC* (Pharmacovigilance and Risk Assessment Committee) to suspend the marketing authorization of certain products belonging to the category of linear contrast agents (which includes Optimark®). A request for re-examination of this recommendation has been sent to the PRAC, and the final decision by the European Commission is not expected for several months.
The Group confirms the return to sales growth and is targeting slight growth at constant exchange rates. It will continue to integrate CMDS, with the realization of new industrial and logistics synergies and integration costs reduced by more than half. The 2017 EBITDA should grow faster than revenue. Guerbet should be able to carry on lowering its debt ratio in 2017.
Upcoming events: Publication of Q1 2017 revenue April 27, 2017, after trading
About Guerbet
Guerbet is a pioneer in the contrast agent field, with 90 years' experience, and is the only pharmaceutical group dedicated to medical imaging worldwide. It offers a comprehensive range of X-Ray, Magnetic Resonance Imaging (MRI) and Interventional Radiology and Theranostics (IRT) products, along with a range of injectors and related medical devices to improve the diagnosis and treatment of patients. To discover new products and ensure future growth, Guerbet invests heavily in R&D, spending around 9% of its sales each year. Guerbet (GBT) is listed on Euronext Paris (Segment B - Mid Caps) and generated €776 million in revenue in 2016.
For more information about Guerbet, please visit www.guerbet.com
Contacts
| Guerbet | Actifin |
| Jean-François Le Martret Chief Financial Officer 01 45 91 50 00 | Financial Communications Benjamin Lehari 01 56 88 11 25 blehari@actifin.fr Press Jennifer Jullia 01 56 88 11 19 jjullia@actifin.fr |
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