(Boursier.com) — BIOSYNEX’s turnover for the first half of 2023 stood at €42.7 million, down €99.5 million compared to the same period of the previous year. As expected, the Group saw the contribution of income from products linked to the pandemic drop by 111 ME over the half-year with Covid-19 turnover reduced to 4.5 ME.
Conversely, the turnover generated by the Group’s other products increased significantly to €38.2 million, an increase of more than 43%, driven in particular by the integration of acquired companies.
Geographically, international turnover represents 16.2 ME, or 38% of the Group’s total activity (47% in the first half of 2022).
AN INTENSE EXTERNAL GROWTH POLICY TO BUILD THE BIOSYNEX OF TOMORROW
Over the last two years, BIOSYNEX has invested more than €100 million in its external growth policy, mainly from its own funds. The year 2023 was once again marked by numerous acquisitions for an amount of more than €45 million: finalization of the public purchase offer on THERADIAG, public purchase offer on CHEMBIO, acquisition of the INNOXA eye care range, acquisition of 100% stake in PROCISEDX and acquisition of QUALIGEN in July 2023.
With all of these growth drivers, BIOSYNEX is able to confirm a 2023 turnover of around €100 million. Considering the acquisitions of the year retroactively to January 1, 2023, the proforma turnover would be more than 120 ME in 2023.
OPERATIONAL PERFORMANCE IMPACTED BY THE SHARP DECLINE IN COVID-19 ACTIVITY AND BY EXCEPTIONAL RESTRUCTURING AND INTEGRATION COSTS
In a context of massive decline in Covid-19 activity, BIOSYNEX has reoriented its development towards promising products with higher margins. The overall gross margin for the first half of 2023 stands at €24.8 million, or 58.1% of turnover compared to 53% for the same period last year.
EBITDA is in a loss of 7.5 ME in the first half of 2023 compared to a surplus of 50.3 ME in the 1st half of 2022. Apart from the mechanical effect of the sharp drop in activity, EBITDA also includes costs non-recurring acquisition and restructuring for more than 5 ME. Restated for these one-off items, EBE limits its half-year loss to just over 2 ME.
After taking into account net allocations to depreciation and provisions and other income and expenses, the operating deficit reached 19 ME, or 44.5% of turnover. By neutralizing non-recurring costs in EBITDA, the impact of the exceptional depreciation of certain stocks of Covid-19 products and certain intangible assets from past acquisitions for a total total of 12.5 ME, the result of operation shows a deficit of 6.5 ME.
Over the first half of 2023, BIOSYNEX recorded a financial result of -1.2 ME, which essentially includes an exceptional provision on financial assets of the same amount. After integration of a tax income of 0.6 ME and the share of profit of companies accounted for using the equity method (-1.5 ME attributable mainly to PROCISEDX), the consolidated net result reached -19.3 ME, including 14.6 ME of non-recurring net charges.
BALANCE SHEET STRUCTURE
As of June 30, 2023, the Group’s equity amounted to €136.8 million, a decrease of €25.8 million compared to December 31, 2022.
The gross financial debt reached 70.1 ME at the end of June 2023 compared to 52.1 ME at December 31, 2022. The cash flow at June 30, 2023 amounts to 45.3 ME, showing a level of net debt at 24.8 ME , i.e. controlled gearing of 18%.
EXPECTED ACCELERATION OF ACTIVITY IN THE 2ND HALF OF 2023
For the end of 2023, the Group anticipates an increase in the contribution of new acquired companies which are fully in line with BIOSYNEX’s strategy of becoming a global player in the in vitro diagnostics industry on its four strategic axes: rapid tests, delocalized biology (Point of Care), monitoring of biotherapies and molecular biology.
The correct orientation of the activity should be reinforced by:
The significant increase in sales in the United States of products from the CHEMBIO range (HIV, syphilis, etc.) as well as the QUALIGEN FastPack range,
The success of CHEMBIO’s HIV tests on the Brazilian market,
The launch of new products in Europe, notably new applications on the Labpad,
The deployment of the INNOXA range in pharmacies (France and export).
“The year 2023, which marks the end of the exceptional market for Covid-19 products, requires us to accelerate the transformation of BIOSYNEX according to the transformation plan that we announced last year to the financial community. This profound change obviously requires to take drastic measures which occasionally affect our economic model and our profitability, but opens up a prospect of turnover of 3 to 4 times that of pre-Covid activity for the year 2024. The change in dimension of BIOSYNEX shows already its virtuous effects with an improvement in the overall gross margin rate. The entire management team is fully mobilized to make the transformation of BIOSYNEX a real success” comments Larry Abensur, Chairman and CEO of BIOSYNEX.
Next communication: SFAF meeting by videoconference on October 19, 2023 at 10:00 a.m.