Revenue in line with forecasts despite the health crisis
› -12.8% at current exchange rates at €712.3 million
› -10.0% at constant exchange rates (CER)1 at €735.4 million
Villepinte, February 11, 2021 – Guerbet (FR0000032526), a global specialist in contrast agents and solutions for medical imaging, today reported its revenue for 2020.
The financial year was marked by the health crisis. The postponement of some examinations and non-essential radiological procedures had a significant impact on activity, resulting in a contraction of the market.
As of December 31, 2020, reported revenue was €712.3 million, down 12.8% from December 31, 2019, including a substantial forex impact of €23.1 million. Revenue at constant exchange rates (CER) was down 10.0% at €735.4 million, as the Group expected.
Consolidated Group revenue (IFRS)
1 At constant exchange rates: amounts and rates of growth are calculated by canceling out the forex impact, which is defined as the 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
In Europe, annual revenue at constant exchange rates totaled €292.0 million, down 15.4%. After a first half of the year down 21.2% at constant exchange rates and a third quarter down 5.7%, the fourth quarter suffered from an even worse health situation, resulting in a 12.6% decline.
In the Americas, on a like-for-like basis1, sales at constant exchange rates were down slightly (-1.9%) in the fourth quarter, compared with the decline of slightly less than 20% in the third quarter. This good resistance came from the North America region, where the number of imaging procedures began to rebound at the end of 2020.
Over the financial year, on a like-for-like basis and excluding an adverse forex impact of €18.4 million attributable to the weakened Brazilian real and US dollar, the decline in activity in the Americas was 12.0% at constant exchange rates for revenues of €225.4 million.
In Asia, total revenue at constant exchange rates for the financial year increased +2.2% to €168.8 million (+1.0% at current exchange rates). After a good performance in the first nine months of the year, activity was down in the fourth quarter due to a base effect in China and COVID-19 crisis in Korea.
Analysis by activity:
Diagnostic Imaging revenue totaled €637.2 million, compared with €719.4 million at December 31, 2019, down 11.4% at constant exchange rates (-14.5% at €615.2 million at current exchange rates).
- MRI sales decreased 15.3% at constant exchange rates (-17.2% at current exchange rates) at €232.8 million. This decline was due to a negative volume effect directly related to the health crisis and, to a lesser extent, an adverse price effect in Europe related to the generic form of Dotarem®.
- X-ray revenue at constant exchange rates totaled €402 million, down 8.8% (-12.6% at current exchange rates), with Xenetix® showing good resistance throughout the year.
Interventional Imaging was down slightly at -1.5% at constant exchange rates (-2.7% at current exchange rates), still driven by Lipiodol® with sales up nearly 1% at constant exchange rates. The segment's revenue totaled €74.4 million, compared with €75.5 million in 2019.
Guerbet is maintaining the objectives reported with its half-year results. The Group's projected EBITDA margin for the 2020 financial year is around 14% of revenue, thanks in particular to the strict management of structural costs, which should have a positive impact on profitability once activity returns to normal.
For 2021, the course of the health situation remains uncertain. Over the coming months, the Group still anticipates the arrival of the generic form of Dotarem® in the United States. The Group expects the impact to be moderate with changes in Dotarem® prices comparable with Europe, where the generic form as already been available for more than two years.
1 Excluding the subcontracting activity following the sale of the Montreal plant in Canada in July 2020
Publication of 2020 annual results
March 24, 2021, after trading