(AOF) – Eurofins (-11.26% to 52.04 euros) shows the biggest drop in the CAC 40 following the publication of its annual results. Jefferies considers the free cash flow (before investments in sites belonging to the group) of the French group of analytical laboratories to be “low” at 626 million euros. Eurofins was targeting free cash flow of between 670 and 720 million euros.
At 0.50 euros per share, the announced dividend is also 45% lower than expected (0.92 euros) according to Jefferies. Eurofins had paid a coupon of 1 euro for 2022.
Deterioration of accounts in 2023
Net profit was down 49% for 2023 to 308 million euros and adjusted Ebitda fell 10% to 1.364 billion euros. Eurofins aimed for an adjusted Ebitda of between 1.2 and 1.37 billion euros. The company posts an Ebitda margin of 20.9% compared to 22.5% a year earlier.
It faced a 2.9% drop in revenue to €6.515 billion due to a drop of around €580 million in Covid-related revenue and negative foreign exchange impact. Excluding Covid-related revenues, Eurofins posted organic growth of 7.1%.
Eurofins is targeting this year an adjusted EBITDA of between 1.525 and 1.575 billion euros for revenues of between 7.075 and 7.175 billion euros. By 2027, the group still expects revenues close to 10 billion euros and an EBITDA margin of 24%.
According to Invest Securities however, the 2023 results are “above expectations on the margin” (20.9% Ebitda margin against 19.8% expected) and the margin objectives are “better than expected” at 24% in 2027.
© 2024 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
