(BFM Bourse) – Since the beginning of the year, Boiron has regained its health on the stock market. The title of the homeopathy specialist had had a difficult year in 2021, weighed down by the new law on the non-reimbursement of homeopathic care, a market segment which had made the reputation of the Rhone group.
The past year has not been easy for Boiron. Between the regulatory changes on homeopathy in France and the very sharp cyclical decline in the winter pathologies market, the group’s revenues had fallen by 11.4% in 2021 compared to 2020 to reach 455.2 million euros.
The laboratory has been forced to change its strategy since 2021 with the entry into force of the new law on the reimbursement of homeopathic care in France. But Boiron’s efforts to reduce its dependence on homeopathic treatments began to be visible from the second half of the past financial year. The laboratory quickly raised the bar, returning to growth in the second quarter of 2021 thanks to the launch of new products and a drastic reduction in its costs (12 of its 27 preparation-distribution establishments closed in the first half).
A strong increase in sales at the start of the year
The last quarterly activity report, published on April 21, thus revealed a strong increase in turnover in the 1st quarter of 2022. The company achieved turnover of 145 .78 million euros, up 59.9% over one year and 58% at constant exchange rates. This growth erased the underperformance of the 1st quarter of 2021. Boiron then recorded a 41.8% drop in sales over the period, the group having suffered from the end of reimbursement for homeopathy.
While sales of non-proprietary homeopathic medicines (NHC) remain on a downward trend (-2.8% at constant rate to 45.52 million euros), the decline is much less marked than in the first quarter of 2021 (- 24.9% compared to the first quarter of 2020).
Specialty sales, which have exceeded sales of homeopathic products since 2019, for their part grew by 70.2% in the first quarter of 2022 to 67.10 million euros. The marketing of new products, including the marketing of antigenic self-tests for the rapid diagnosis of Sars-Cov2 by nasal swab, sustained the sales of this activity. The laboratory has focused on innovation with the launch in this first quarter of a new homeopathic medicine targeting the symptoms of chickenpox, Varésol.
Soaring sales of medical devices and dietary supplements
Other health products, including all non-homeopathic products such as medical devices or food supplements, experienced a surge (+515%) in sales to 33.16 million euros.
This growth is also valid “in all the geographical areas” where the group is present. France, Boiron’s historic market, generated sales up 49.6% to 77.06 million euros. Europe posted net revenue growth of 72% and the United States nearly 64% over the period. The group, which is counting on growth in its turnover in 2022 (without giving more details), nevertheless remains vigilant to the evolution of the Ukrainian conflict.
The dynamism displayed by Boiron over the first three months of the year has pleasantly surprised the market, and has enabled the company’s stock to gain nearly 14% since April 22. The performance of the action of the French specialist in homeopathy is thus poorly correlated with the market with an increase of 22.52% since January 1 (against -11% for the CAC 40 for example).
Sabrina Sadgui
©2022 BFM Bourse
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