2020 annual results
- 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)
- Resilient EBITDA(2) margin at 14.1%
- Proposed dividend maintained at €0.70/share
- Higher free cash flow at €40 million with significant working
capital improvement
- Reduction of net debt to €257 million
- Confirmation of the strategic roadmap in 2021:
- Strong growth in Interventional Imaging and delivery
systems
- Reinforcement of the Group’s positions in the APAC region
- Finalization of clinical studies and continuation of industrial
investments for Gadopiclenol
- Continued investments in Artificial Intelligence
- A favorable financial outlook:
- Revenue expected to increase in 2021 despite an ongoing health
crisis
- Extension of 50% of the cost reduction implemented in 2020
Villepinte, March 24,
2021– Guerbet (FR0000032526), a global specialist in
contrast agents and solutions for medical imaging, is announcing
its consolidated annual results for 2020.
On March 24, 2021, the Board of Directors
approved the financial statements for the financial year ended
December 31, 2020. The audit procedures have been completed, and
the statutory auditors’ report is being prepared.
Revenue in line with forecasts despite a
health crisis
The postponement of certain examinations and
non-essential radiological procedures had a significant impact on
activity, resulting in a contraction of the market. In this
difficult environment, the Group has managed to maintain its market
share by continuing to serve its customers to preserve patient
health.
As of December 31, 2020, reported revenue was
€712.3 million, down 12.8% from December 31, 2019, including a
substantial negative forex impact of €23.1 million. Revenue at
constant exchange rates (CER) was down 10.0%, as the Group
expected.
Diagnostic Imaging revenue was
down 11.4% at CER. It totaled €615.2 million compared with
€719.4 million at December 31, 2019, down 14.5% at current
exchange rates.
- MRI sales decreased 15.3% at CER and 17.2% at
current exchange rates to €227.6 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 was down 8.8% at CER. It totaled
€385.3 million at current exchange rates, down 12.6% from 2019,
with Xenetix® showing good resistance throughout the year.
Interventional Imaging revenue
was down 1.5% at CER (-2.7% at current exchange rates), still
driven by Lipiodol® sales up nearly 1% at CER. The segment’s
revenue totaled €73.5 million at current exchange rates
compared with €75.5 million in 2019.
EBITDA in line with expectations thanks
to rigorous cost discipline
In millions of euros Consolidated
financial statements (IFRS) |
2019 Reported |
2020 Reported |
Revenue |
816.9 |
712.3 |
EBITDA |
111.5 |
100.7 |
% of revenue |
13.7% |
14.1% |
Operating income |
51.7 |
41.3 |
% of revenue |
6.3% |
5.8% |
Net income |
37.3 |
17.7 |
% of revenue |
4.6% |
2.5% |
Net debt |
296.5 |
256.6 |
As of December 31, 2020, the Group’s EBITDA
remained above €100 million, representing a margin of 14.1%
compared with 13.7% in 2019. This performance was in keeping with
the Group’s expectations.
In an unprecedented health crisis, the Group
managed to react to maintain the quality of its financial balances
by ramping up the cost control discipline already initiated in
recent years as part of the Cost-to-Win plan. Over the 2020
financial year, the decrease in structural costs was just under €30
million, plus €9 million in manufacturing cost improvements. Fifty
percent of the achieved savings will be extended through the 2021
financial year.
The industrial organization was optimized with
the sale of the Montreal manufacturing plant on July 15, 2020. This
will further reduce manufacturing costs in 2022 and 2023.
At December 31, 2020, operating income totaled
€41.3 million for a margin of 5.8%.
Net income is at €17.7 million compared
with €37.3 million for the 2019 financial year. This decrease
is primarily explained by significant negative forex effects and
the write-down of the Canadian subsidiary’s assets for €4.4 million
following the sale of the Montreal production plant.
Improved financial structure and
proposed dividend of €0.70/share
As of December 31, 2020, equity totaled
€364 million. Free cash flow further improved to €39.9
million, bringing the Group’s net financial debt to €256.6 million
compared with €296.5 million at the end of 2019, resulting in a net
debt/EBITDA ratio of 2.55 at the end of 2020 compared with 2.66 at
the end of 2019 (including IFRS16).
The Board of Directors will propose a dividend
of €0.70 per share to the shareholders at the General Meeting on
May 28, 2021.
2021: Continued transformation and
momentum for the Group
Although the future of the health situation
remains uncertain, the Group remains confident that it will find
its way back to growth in 2021.
After an expected declining first quarter,
Guerbet anticipates revenue growth for 2021 starting in the second
quarter. The Group will be able to count on:
- The continued robust performance of Lipiodol®
- The growth of delivery systems and consumables
- The growth of sales in the APAC region
In the coming months, the Group’s activity is
also expected to be affected by the acceleration of sales of the
generic form of Dotarem® in the United States. However, the Group
believes that the impact will be limited with movements in Dotarem®
volumes and prices expected to be comparable with Europe, where the
generic form has already been available for more than three
years.
The Group also announced positive results for
the two phase-III clinical studies with Gadopiclenol, a new
gadolinium-based (Gd) macrocyclic contrast agent for MRI, intended
to be administered at a lower dose of Gd than with existing agents.
The Group aims to obtain the first marketing authorizations (MA) in
2023. As a reminder, the phase III studies are intended to validate
the efficacy and safety of Gadopiclenol in a large number of
patients compared with a reference product.
Alongside its sales growth, Guerbet will
continue its savings plan efforts, sustaining 50% of the cost
reductions achieved in 2020, with the ambition of improving its
EBITDA rate in the medium term and ensuring strong, lasting growth
for the Group.
(1) At constant exchange rates: amounts and
rates of growth are calculated by canceling out the exchange rate
effect, 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 N-1.
(2) EBITDA: Operating income + net amortization,
depreciation, and provisions.
Upcoming events:
Reporting of Q1 2021 revenue
April 22, 2021, after
trading
About Guerbet
Guerbet is a leader in medical imaging
worldwide, offering a comprehensive range of pharmaceutical
products, medical devices, and digital and AI solutions for
diagnostic and interventional imaging to improve patient diagnosis
and treatment. A pioneer in contrast media for 95 years, with more
than 2,600 employees worldwide, Guerbet continuously innovates and
devotes 10% of its sales to research and development in four
centers in France, Israel, and the United States. Guerbet (GBT) is
listed on Euronext Paris (segment B – mid caps) and generated
€712 million in revenue in 2020. For more information about
Guerbet, please visit www.guerbet.com.
Forward-looking statements
Certain information contained in this press
release does not reflect historical data but constitutes
forward-looking statements. These forward-looking statements are
based on estimates, forecasts, and assumptions, including but not
limited to assumptions about the current and future strategy of the
Group and the economic environment in which the Group operates.
They involve known and unknown risks, uncertainties, and other
factors that may result in a significant difference between the
Group's actual performance and results and those presented
explicitly or implicitly by these forward-looking statements.
These forward-looking statements are valid only
as of the date of this press release, and the Group expressly
disclaims any obligation or commitment to publish an update or
revision of the forward-looking statements contained in this press
release to reflect changes in their underlying assumptions, events,
conditions, or circumstances. The forward-looking statements
contained in this press release are for illustrative purposes only.
Forward-looking statements and information are not guarantees of
future performance and are subject to risks and uncertainties that
are difficult to predict and are generally beyond the Group's
control. These risks and uncertainties include but are not limited
to the uncertainties inherent in research and development, future
clinical data and analyses (including after a marketing
authorization is granted), decisions by regulatory authorities
(such as the US Food and Drug Administration or the European
Medicines Agency) regarding whether and when to approve any
application for a drug, process, or biological product filed for
any such product candidates, as well as their decisions regarding
labeling and other factors that may affect the availability or
commercial potential of such product candidates. A detailed
description of the risks and uncertainties related to the Group's
activities can be found in Chapter 4.8 "Management and risk
factors" of the Group's Universal Registration Document filed with
the AMF (French financial markets authority) under
number D-20-0369 on April 28, 2020, available on the Group's
website (www.guerbet.com).
For more information about Guerbet, please visit
www.guerbet.com
Contacts
Jérôme
Estampes 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 |
- CP_RA2020_24 mars 2021_EN_VFinale
Guerbet (EU:GBT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Guerbet (EU:GBT)
Historical Stock Chart
From Apr 2023 to Apr 2024