2017 Annual Results: Satisfactory activity slightly exceeding the objectives
> EBITDA increased by 22.4% to €130 million
> Net income up 60% at €46.2 million
> Ongoing debt reduction (leverage ratio of 2.1)
Villepinte, March 27, 2018 - Guerbet (FR0000032526 GBT), a global specialist in contrast agents and solutions for medical imaging, has announced its audited consolidated annual results for 2017.
On March 27, 2018, the Board of Directors approved the consolidated financial statements for the period ended December 31, 2017. The audit process is finalised and the Auditors report is to be issued.
Satisfactory activity slightly exceeding the objectives
Revenue totalled €807.1 million, up 4.0% at current exchange rates. This growth includes a negative exchange rate effect** of €5.3 million over the year. At constant exchange rates, revenue therefore rose by 4.7% to €812.4 million, beating the target of 3% to 4% announced on September 30 2017.
The year was marked by two events on the MRI market: the arrival of a Dotarem® generic in Europe, with impacts on Guerbet mainly in the last quarter in the form of price pressure, and conversely the positive effects of the recommendation of the PRAC (Pharmacovigilance and Risk Assessment Committee) of the European Medicines Agency to suspend the marketing authorization of certain products belonging to the class of linear products.
EBITDA margin over 15%
2017 benefited from the streamlining of the product range and the overhaul of sales structures as well as the efforts made in previous years on structural costs. As anticipated, the Group benefited from the realization of new industrial and logistics synergies and integration costs cut by more than half. Accordingly, EBITDA amounted to €130.0 million, up more than 22%.
After the allowance for amortization, depreciation, and provisions, Operating Income totalled €79.2 million, compared with €54.6 million in 2016, a 45% improvement.
Net income increased by nearly 60% to €46.2 million, thanks to a controlled level of interest expenses and an effective tax rate down 8 points.
Ongoing debt reduction
With shareholders’ equity amounting to €342.1 million, an increase of €27.3 million compared with 2016, operating cash flow of more than €126 million, and a debt level down €23.4 million, Guerbet has a solid financial position. The financial leverage ratio (net debt / EBITDA) decreased to 2.1 from 2.8 in 2016, again demonstrating the Group’s ability to reduce its debt.
The Board of Directors will propose a dividend of €0.85 per share to the shareholders at the General Meeting on May 25, 2018.
2018: strengthening of positions in diagnostic imaging and acceleration of the transformation to interventional imaging
The 2018 financial year will mark Guerbet’s entry into a new cycle of its development.
In diagnostic imaging, the full-year impact of the negative price effect related to the roll-out of the Dotarem generic will be offset by an expected positive volume effect with the transfer of linear products to macrocycles.
In interventional imaging, Guerbet announced in early January 2018 the acquisition of Accurate Medical Therapeutics, a company specialising in microcatheter development. This transaction is the first step in the company’s development on this fast-growing market.
Guerbet is organising a “Capital Market Day” for analysts and investors on April 18 to detail and communicate its five-year strategic plan “GEAR 2023” and will take this opportunity to disclose and comment the Q1 2018 revenue.
** Calculation of exchange rate effect: difference between the indicator’s value for period N, converted at the exchange rate for period N-1, and the indicator’s value for period N-1
Publication of Q1 2018 revenue
April 18, 2018, before trading
Capital Market Day
April 18, 2018