2016 annual results: a year that has lived up to expectations

29.03.2017 07:00

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.

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.

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