Eurofins reports solid H1 2017 results with 15.6% revenue growth on the back of an organic growth of about 6% and over 35 acquisitions signed year-to-date representing over EUR 300m pro forma annual revenues

• H1 2017 revenues up 15.6% to EUR 1,397m.
• H1 2017 organic growth¹⁰ of about 6%, despite tough comparables (H1 2016 organic growth of over 11% was the highest since 2008) and French clinical testing business being impacted by a 3% average price reduction from April 2017, as announced at the end of 2016. Adjusted for public working days impact, Q2 organic growth (+6.3%) further strengthened vs Q1 organic growth (+5.7%).
• Net profit to equity holders up 22.4% vs. H1 2016.
• As announced on February 28^th, 2017, strong acceleration of laboratories start-up program with 30 launched in the first half of 2017 alone, bringing the total number of start-up laboratories opened since 2014 to 87. Overall 130 laboratories have been created since 2000. Of the 87 start-ups of this third program (covering the period 2014-2017), 57 had sales still under EUR 100k in H1 2017 with associated significant start-up losses, and represent a large investment for future growth. The 18 start-ups of the second program (covering 2010-2013) had an EBITDA margin at Group level in H1 2017.
• H1 2017 Adjusted¹ EBITDA³ grew 15.5% to EUR 250.1m, 17.9% of revenue, as in H1 2016, in spite of lower-margin companies entering that perimeter.
• H1 2017 EBITDA grew 3.8% to EUR 219.1m, impacted by high investments in separately disclosed items (SDI) of EUR 31.0m, mainly due to costs associated with reorganizations in recent acquisitions, to the acceleration of our start-up program, as well as sites consolidation, especially in the UK and North America.
• Net profit⁶ increased by 22.4% to EUR 74.5m, driven by a significant decrease in finance costs (from EUR 33.2m in H1 2016 to EUR 24.3m in H1 2017) and a lower income tax expense in percentage of revenues (2.4% vs 2.7% in H1 2016).
• Continued revenue growth and profit improvements have translated into a 19.5% uplift to EUR 3.34 in EPS⁷ attributable to Equity holders.
• As of 30 June 2017, Eurofins had signed and/or closed 29 acquisitions in 2017 (22 closed) representing an aggregate amount of expected annual pro forma revenues of c. EUR 200m in 2017, thereby achieving its annual M&A revenue target (EUR 200m) in only six months; 22 of these 29 acquisitions were consolidated in H1 2017 (for part of H1 only for most) and contributed to H1 revenues for EUR 20m.
• Including deals signed since July 1^st 2017, over EUR 300m pro forma annual revenues should be acquired year-to-date.
• During the last 12 months, with the acquisition of Villapharma and DiscoverX, Eurofins has strengthened its global leadership in innovative drug discovery products and services, a fast-growing segment of pharmaceutical research.
• Circa 27,000m² of modern laboratory surface delivered as of June 30, with a full year revised plan of 49,000m².
• Capex for H1 2017 was EUR 97.4m, representing a capex/sales ratio of 7.0% versus 6.7% in H1 2016 and 7.7% for FY 2016. This increase is linked to the acceleration in the opening of start-up laboratories and investments in large modern facilities to sustain future growth. Management’s objective remains to gradually bring capital expenditures closer to 6% of sales by 2020.
• Net operating cash flow⁸ amounted to EUR 125.3m and Free Cash Flow to the Firm⁹ to EUR 28.0m, impacted by our investments for future growth despite a good net working capital (net working capital to sales improved by 20bps vs H1 2016, at a bit less than 5%).
• Net debt at the end of June 2017 increased to EUR 758.7m (versus EUR 557.8m in December 2016) following disbursements for capex and acquisitions. However the net debt to adjusted EBITDA ratio stood at 1.48x only reflecting a sound capital structure.
• Given attractive credit market conditions in July, Eurofins successfully issued a new EUR 650m seven year senior bond, strengthening its liquidity position for corporate activity in the remainder of 2017 as well as extending its debt maturity profile. It will also help refinance its EUR 300m bond that matures in November 2018 and will enable the Group to respond to potential growth opportunities swiftly and efficiently.
• Outlook: Management remains confident of achieving its FY 2017 objective of delivering close to EUR 2.9bn of revenues and EUR 550m of adjusted EBITDA and its mid-term plan of achieving EUR 4bn of revenues and EUR 800m of adjusted EBITDA by 2020 given continued positive trends across its businesses.

Comments from the CEO, Dr. Gilles Martin:

“In H1 2017, we have again made big strides towards creating the best of breed operating platform in our industry. The progress made in H1 2017 reflects the hard work that has been done to expand our unique network of laboratories, both organically and through an acceleration of M&A. I am particularly proud of our achievement of opening 30 start-up laboratories during the half year, which represents over one third of the 87 that we have now opened since the beginning of our third start-up program in 2014.

Starting 30 new businesses, adding 27,000m² of new laboratory surface and closing 22 acquisitions in a six month period is impressive and illustrates the Group’s commitment to keep investing for future growth. It has also been encouraging to see the large demand for our EUR 650m bond issue in July, with an order book which was more than 4 times oversubscribed. The demand and the attractive market conditions allowed us to price our bond issue at a 2.125% coupon which is the lowest coupon achieved by Eurofins since its debut senior Euro bond issuance in November 2013.

With acquisitions signed to date including DiscoverX, Alphora, Advinus and Amatsi, we have also significantly strengthened our fast growing pharma services business lines, while Genoma and LifeCodexx bring unique innovative services to the global clinical genetic laboratories network that we are setting up.

As a global network of world-class laboratories, we are creating a unique portfolio of technologies and service delivery platforms that is able to offer a market leading level of service to our clients, and provides a solid base for our future growth. I believe that in H1 2017 we have made decisive progress in building a formidable highly innovative global laboratories platform to deliver long-term sustainable growth.”

Business Review

The following figures are extracts from the Consolidated Financial Statements and should be read in conjunction with the Consolidated Financial Statements and the Notes.

Table 1: Half Year 2017 Results Summary

 Note: Definition of the terms used can be found at the end of this section

Revenues

Revenues in the second quarter were EUR 712.3m, pushing Group revenues for the first half of 2017 to EUR 1,396.9m, representing a year-on-year increase of 15.6%. The revenue growth has been driven by sustained organic growth, the acceleration of our start-ups program, and an intense period of M&A activity, which will all support continued future growth. Eurofins has benefited from the continuing growth momentum in the testing market, acceleration in market share gains in most regions, and increasing customer penetration. Currency had a 1.3% positive impact during the period.

Organic growth in North America (driven by BioPharma and Food & Feed testing) and Northern Europe were particularly strong, posting organic growth above Group average, whereas France was below Group average in H1 2017 (mainly due to Clinical testing). This good performance was achieved despite strong headwinds, as H1 2016 organic growth of 11% was the highest since 2008, and as the French clinical testing business was impacted by a 3% average price reduction from April 2017. Nonetheless, adjusting for working days, the Q2 growth of 6.3% showed a strengthening over the 5.7% growth rate of Q1.

Growth variations across geographies reflect the level of acquisition activity in each region as well as dynamics specific to certain countries, as described below.

Table 2: Geographical Revenue Breakdown

Eurofins’ businesses in North America continue to represent the largest share of the Groups’ sales, generating total revenues of EUR 445.4m in the first half of 2017. This represented 32% of total Group revenues, and an increase of 15.2%, on organic growth of close to double digits. The growth was derived from a blend of expanding footprint, adding capacity, new start-ups and new services and tests. The BioPharmaceutical and Food and Feed Testing segments of the business were the largest drivers of growth in North America. The Food and Feed Testing business achieved growth despite a flat US dairy market; it signed a national contract that will expand food testing into other Eurofins facilities. In Environment, the 2014 water crisis (Flint, MI and Toledo, OH) continue to generate an increasing nation-wide strict monitoring of water supplies. The Clinical Diagnostics division expanded its service-portfolio with new testing options: Eurofins NTD had an important breakthrough in prenatal screening, with the launch of the Maternal Fetal ScreenSM tests; additionally, Eurofins ViraCor introduced two new testing options which help physicians optimize outcomes of patients with Cytomegalovirus (CMV).

The European businesses showed growth across the board. In the UK and Ireland, which represents 5% of revenues, the revenues grew by 31% mainly thanks to acquisitions completed in 2016 (Exova & ILS) and a strong organic growth. Eurofins’ clinical diagnostics segment in the UK and Ireland has seen numerous developments over the first half of the year. In March 2017, Biomnis became the first medical pathology laboratory in Ireland to offer Direct Consumer Access via an online shop for the Non-invasive Prenatal Test (NIPT) ‘Ninalia’. This illustrates Eurofins’ commitment of establishing leadership positions in niche areas of the Clinical Testing market. Furthermore, in January 2017 Eurofins completed the acquisition of its first histopathology laboratory (MC Pathology), which is operating within the Biomnis facility in Dublin and has provided the Group with new services capable of processing up to 20,000 patient cases annually.

France remains the second largest market for Eurofins with revenues of EUR 328.7m achieved in H1 2017, up approximately 5% on H1 2016. BioAccess, acquired in 2015, continues to generate sales in line with its objectives and has acquired three new laboratories as well as two pathologists laboratories to expand its footprint and range of services. In the Food testing sector, Eurofins announced in March 2017, a new collaboration between its Nantes Authenticity Competence Centre and the US Pharmacopeia Convention (USP), in which Eurofins and USP will combine expertise to assist the food sector with specific tools for combatting food fraud and explore new testing methods that will address vulnerabilities of supply chains based upon global analytical and food fraud data.

Germany makes up 11% of Group revenues, with EUR 147.7m generated in H1 2017. Revenues were up 13.3% on H1 2016 (about half of which was organic growth) continuing the progress over the 11.8% growth achieved in H1 2016. Sustained growth in Food Testing was driven by strength in the retail sector and success in a number of global tenders. The third phase of expansion in the German Food Testing business was started with the expansion of the Hamburg Food Testing Campus, which will result in 12,000 m² of additional laboratory space by 2019.

The Group’s businesses in the Benelux delivered EUR 98.4m of revenues, representing 7% of the Group total. The 10% growth in H1 2017 came mainly from the Food Testing and Central Laboratories activities. Eurofins’ Nordic businesses generated EUR 97.0m of revenues in H1 2017, making up 7% of total sales. The growth of nearly 19% was underpinned by acquisitions across the region, but in particular in Finland where the Environment Testing business was strengthened by three acquisitions. This has taken Eurofins from a company with practically no exposure to Environment Testing in Finland to being the leading player in the country.

Eurofins continues to place emphasis on expansion opportunities in emerging markets and Asia Pacific. This expanding footprint resulted in revenue growth of 37% to EUR 211.1m. The Group pursued its investments in this geographical area with Mechem in Singapore and EcoPro in Japan in H1 2017. Success in the Australian Environment business supported by the opening of a new Air Toxics laboratory should position this business well for growth in H2 2017. In Latam, we started working in a new market: pesticide residue analysis in honeybees, where Eurofins is the first company in Brazil to offer such a service. In Turkey, Eurofins completed the acquisition of Gözlem Gýda Kontrol ve Araþtýrma Laboratuvarlarý, one of the leading food testing laboratories.

The combination of expanding laboratories, starting new laboratories, and making acquisitions to extend and deepen the network of services and locations has resulted in a strong positive outcome in most of Eurofins’ markets.

Profitability

Group adjusted EBITDA increased 15.5% to EUR 250.1m in H1 2017 with a stable margin of 17.9% of revenues. Reported EBITDA grew 3.8% to EUR 219.1m, due to investments in separately disclosed items of EUR 31.0m which were principally related to costs associated with reorganizations in recent acquisitions and the acceleration of our start-up program (EUR 20.1m), together with discontinued operations and site consolidation costs (EUR 10.9m), particularly in the UK and North America.

Laboratories in their start-up phase had a positive contribution to Group revenues generating EUR 88.6m of the total in H1 2017. EBITDA margins generated by start-up laboratories launched between 2010 and 2013 (Program 1) were in line with the average of the Group. CAPEX and cash costs of the start-up program have a short term dilutive impact on profits and cash flows, as most start-ups of the second program are in very early phases (pre-accreditation). Start-ups usually break-even within 2 to 3 years after receiving their accreditation, and we believe the strong acceleration in our start-up program, though having a short-term negative impact on margins and Free Cash Flow, constitutes a solid base for future growth and profitability.

Financial result was EUR -11.3m in H1 2017 (H1 2016: EUR -31.0m), representing a sharp improvement to 0.8% of total revenues from the 2.6% level in H1 2016. This improvement mainly resulted from the repayment of older, more expensive, debt instruments. These include 170m of Schuldschein debt and 58.7m of OBSAAR bonds repaid in H2 2016.

Income tax expense was EUR 32.9m for H1 2017, the rate of income tax expense to profit before income tax was 30%, an improvement in comparison to the H1 2016 rate of 33.5%.

The reported net profit⁵ increased by 22.4% to EUR 74.5m in H1 2017, which represents a net profit margin of 5.3% (up from 5.0% in H1 2016). Despite the impact of a higher weighted average number of shares in issue increased by 10% between H1 2017 and H1 2016 following equity offerings in June and September 2016, the basic earnings per share (EPS) increased by 11.2% (11.1% at the adjusted EPS level).

Cash Flow & Financing

Net working capital (NWC) improved slightly from 5.1% of sales in H1 2016 to 4.9% in H1 2017. However, despite this improvement, Net cash provided by operating activities remained relatively stable in absolute terms at EUR 125.3m due to an increase in profit before tax (from EUR 95.6m to EUR 109.7m) fully offset by an increase in NWC in value by EUR 8.4m, income taxes paid of EUR 4.6m and other non-cash related items. Free Cash Flow to the Firm decreased from EUR 48m in H1 2016 to EUR 28m in H1 2017 due to higher Net capital expenditures (CAPEX) of EUR 97.4m, or 7.0% of sales, versus 6.7% at the end of June 2016. The increase in CAPEX during the first six months of 2017 is directly linked to accelerating investments in new start-up laboratories (30 in H1 2017) as well as IT and infrastructure developments, which will support Eurofins in its future growth. On an annual basis, Eurofins’ management retains the objective of bringing CAPEX closer to 6% of sales by 2020, as the Group’s site/infrastructure and IT programs reach completion.

Net debt at the end of June 2017 increased to EUR 758.7m (versus EUR 557.8m in December 2016) following disbursements for capex and acquisitions. However the net debt to adjusted EBITDA ratio stood at 1.48x only reflecting Eurofins’ sound capital structure, and showing a positive improvement on the 1.88x level at the end of June 2016. At the end of June 2017, Eurofins’ cash on hand stood at EUR 575.2m (down from EUR 826.1m at 31 December 2016 due to acquisitions closed in the first half). However this level does not include post period events such as additional spend on acquisitions signed but not closed during H1, the 2017 dividends of EUR 34m paid early July and the buy-out of Bio-Access minority shareholders for approximately EUR 100m paid in early August.

With this in mind, and recognizing the attractive state of the credit market, Eurofins successfully issued a new EUR 650m seven year senior bond in July 2017, strengthening its liquidity position for corporate activity in the remainder of 2017 as well as extending its debt maturity profile. The bond issue will also help Eurofins refinance its EUR 300m bond that matures in November 2018 and enable the Group to respond to potential growth opportunities swiftly and efficiently.

Acquisitions & Infrastructure

In H1 2017, Eurofins signed and/or closed acquisitions representing an aggregate amount of expected annual pro forma revenues of c. EUR 200m in 2017, thereby achieving its annual M&A revenue target (EUR 200m) in only six months. 22 acquisitions were closed in H1 2017, which contributed EUR 20m to consolidated revenues in H1. This is a significant increase in comparison to the 12 acquisitions closed in the first half of 2016. By August 25^th, including the DiscoverX and Amatsi transactions, the number of deals signed and/or closed had increased to over 35, with expected annual pro forma revenues in excess of EUR 300m in 2017.

Some of Eurofins’ acquisitions completed in the first half of 2017 are discussed below.

In February, Eurofins acquired Ahma Ymparisto Oy (“Ahma”), the second-largest environment testing laboratory in Finland. Founded in 1977, Ahma has built a solid reputation in the domestic environment testing market, with a strong footprint in the northern and western parts of the country, and with some strong competencies in the fields of water, hydrobiology and bio-fuels testing in particular. 

In March, Eurofins acquired Mechem Laboratories, one of the leading laboratory service providers in Singapore, accelerating Eurofins’ roll-out of its world-leading capabilities to serve the food and beverage industry in Singapore, as well as providing Eurofins with a strong entry platform in the local environment testing market. Also in March, Eurofins acquired Gözlem Gýda Kontrol ve Araþtýrma Laboratuvarlarý (“Gözlem”), one of the leading food testing laboratories in Turkey, providing Eurofins with a strong platform to accelerate the roll-out of its capabilities in the food and beverage industry. Eurofins also reinforced its market leadership in environment testing with the acquisition of VBM Laboratories in Denmark.

In March, Eurofins acquired Villapharma Research SL (“Villapharma”) in Spain. Villapharma provides organic synthesis and medicinal chemistry services to global pharmaceutical and biotech companies for the discovery and optimization of potential new drug candidates.

It also acquired Nab Labs Group Oy (“Nab Labs”), one of the largest independent environment testing laboratories in Finland. Nab Labs provides a comprehensive range of environmental research and testing services nationwide, with a strong competence in industrial process analytics and forestry sectors. Also in June 2017, Eurofins acquired Alphora Research Inc. (“Alphora”), a full service contract research, development and manufacturing organization (CRDMO) for complex and niche small molecule active pharmaceutical ingredients (APIs), based in Mississauga, Ontario, Canada. Alphora employs over 100 staff and expects to generate strong organic growth in 2017 and 2018.

It also expanded into Estonia through the acquisition of Ramboll Finish laboratory (“Ramboll”) that also operates a satellite laboratory in Tallinn, Estonia. Eurofins is also deepening its exposure to existing territories as demonstrated by the acquisition of four clinical laboratories in France since the beginning of 2017 in order to better serve the patients and healthcare practitioners in that country, and the announcement of £4 million investments to build a new BioPharma facility in Scotland.

During 2016 Eurofins added 46,000m² of state-of-the-art laboratory surface and this ongoing network investment program has continued through the first half of 2017 with an additional 27,000m² added. The company has recently revised its full year plan upwards with a target of adding 49,000m² of laboratory surface, up 6.5% on the 2016 achievement. Examples of these new investments include a brand new 9,500m² food testing laboratory next to the Company’s first-ever laboratory in Nantes, France. The construction start of a 15,500m² extension to the Group’s laboratory campus in Lancaster, US. Expansions in Asia included a new state-of-the-art food testing laboratory in Ho Chi Minh City, Vietnam delivered in April 2017, the opening of a new laboratory in New Delhi, India in March 2017, and a new advanced laboratory opened in Hanghzou, China.

Post-closing events

In July:

Eurofins acquired MVZ für Laboratoriumsmedizin am Hygiene-Institut GmbH (“Hygel”), a group of clinical diagnostic laboratories headquartered in Gelsenkirchen, Germany. The company employs 370 staff across its 3 main sites as well as in laboratories that it operates for 4 local hospitals, and generated revenues in excess of EUR 35m in 2016.

Eurofins acquired GATC Biotech AG (“GATC”), one of Europe’s specialists in DNA sequencing. Founded in 1990, GATC has achieved a strong recognition for DNA and RNA sequencing, as well as bioinformatics in Europe. The company employs 140 staff across 2 sites, and serves over 10,000 institutional and academic customers, generating annual revenues of about EUR 20m.

In the same time, Eurofins acquired of 62.63% of the shares owned by GATC in LifeCodexx AG (“LifeCodexx”), one of Europe’s specialists in non-invasive prenatal testing (NIPT). LifeCodexx, headquartered in Constance, Germany, has been developing innovative and clinically validated non-invasive diagnostic tests based on the newest molecular analytical methods since 2010. The company generated revenues of about EUR 7m in 2016.

Eurofins acquired Genoma Group Srl (“Genoma”), one of the leading specialty diagnostics testing providers in Italy. With 20 years of clinical testing innovation, Genoma offers a wide range of specialty diagnostic testing services, and has developed a strong reputation in molecular biology and cytogenetics. Specifically, the company is a pioneer in non-invasive prenatal testing (NIPT) in Italy, and leads the industry in innovative diagnostic tests in oncology. Genoma employs about 100 staff across its 2 main sites in Rome and Milan, and generates annual revenues in excess of EUR 20m.

Eurofins acquired Environmental Research & Industrial Co-operation (“ERICo”), the leading independent laboratory for environment testing services in Slovenia. Founded 25 years ago, the company employs 46 staff at its laboratory in Velenje, northeast Slovenia.

Eurofins acquired Ana Laboratories, Inc. (“ANA”), one of the largest laboratory networks specialized in fluid and tribology analyses serving the public mass transit sector in the USA. The company employs 48 staff in 7 laboratories serving 75 of the largest city transit agencies (such as the New York City Transit), several statewide Departments of Transportation including Texas and Connecticut, as well as the largest railway companies nationwide.

On July 10^th, Eurofins announced the exclusive agreement signed with Ekkio Capital to acquire the Amatsigroup for a price of approximately EUR 130m plus some residual debt at closing. Amatsigroup is one of the largest independent multi-specialist platforms in Europe with a unique proposal for specialty and biopharma clients, including biopharmaceutical analysis, formulation development and manufacturing, biological research & development, among other services. The company employs about 450 staff and plans to generate over EUR 60m revenues in 2017 on a pro forma basis.

Also in July, Eurofins announced that it had signed an exclusive agreement with Tata Group to acquire Advinus Therapeutics (“Advinus”), a leading preclinical and clinical phase contract research company for Safety Assessment, DMPK, CMC services, and Analytical R&D Services. The company generated revenues of EUR 17m in the Fiscal Year ending 31 March 2017 with over 300 staff.

Eurofins signed an agreement to acquire DiscoverX, a leader in drug discovery products and services across all stages of discovery from target identification and lead discovery to preclinical and beyond. The company employs 137 staff in four locations in Fremont, San Diego, San Francisco (California) and Birmingham (England) and generated over USD 37m of revenues in 2016.

During the summer Eurofins also acquired a few more small laboratories in Asia Pacific and in Europe.

As discussed above, post period end, Eurofins announced that it had successfully raised EUR 650m in a senior unsecured Euro bond public issuance. The bonds have a 7-year maturity (due 25 July 2024) and will bear an annual rate of 2.125%, the lowest coupon achieved by Eurofins since its debut senior Euro bond issuance in November 2013. The issue was more than 4x times over-subscribed. The proceeds of the issuance will be used for general corporate purposes, including refinancing some of Eurofins’ existing debt instruments, as well as to fund any further growth opportunity in-line with the Group’s strategy and objectives.

Table 3: Separately disclosed items²

¹ Adjusted - reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items²”.

² Separately disclosed items - includes one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income) and the related tax effects.

³ EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions

⁴ EBITAS – Earnings before interest, taxes, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions.

⁵ Share-based payment charge and acquisition-related expenses, net – Share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, loss/gain on disposal, negative goodwill and transaction costs related to acquisitions as well as income from unused amounts due for business acquisitions

⁶ Net Profit - Net profit for equity holders after non-controlling interests but before payment to Hybrid holders.

⁷ Basic EPS – earnings per share (basic) total (to equity holders before payment of dividends to hybrid bond holders)

⁸ Operating Cash Flow – Net cash provided by operating activities (after tax)

⁹ Free Cash Flow to the Firm - Operating Cash Flow, less capex

¹⁰ Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) - non-IFRS measure calculating the growth in revenues during that period between 2 successive years for the same scope of businesses using the same exchange rates (of year Y) but excluding discontinued operations.

For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have been consolidated in the Group's income statement of the previous financial year (Y-1). Revenue contribution from companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been consolidated as from 1^st January Y-1. All revenues from businesses acquired since 1^st January Y are excluded from the calculation. Organic growth for the period is derived from the following revenues as defined above: EUR 1,371.2m in H1 2017 vs EUR 1,294.7m in H1 2016.

The First Half Year Report 2017 can be found on Eurofins website at the following location: https://www.eurofins.com/investor-relations/reports-presentations/

For more information, please visit www.eurofins.com or contact:

Notes for the editor

Eurofins - a global leader in bio-analysis

Eurofins Scientific through its subsidiaries (hereinafter sometimes “Eurofins” or “the Group”) believes it is the world leader in food, environment and pharmaceutical products testing and that it is also one of the global independent market leaders in certain testing and laboratory services for agroscience, genomics, discovery pharmacology and for supporting clinical studies. In addition, Eurofins is one of the key emerging players in specialty clinical diagnostic testing in Europe and the USA. With over 30,000 staff in 375 laboratories across 41 countries, Eurofins offers a portfolio of over 130,000 analytical methods for evaluating the safety, identity, composition, authenticity, origin and purity of biological substances and products, as well as for innovative clinical diagnostic. The Group objective is to provide its customers with high-quality services, accurate results on time and expert advice by its highly qualified staff.

Eurofins is committed to pursuing its dynamic growth strategy by expanding both its technology portfolio and its geographic reach. Through R&D and acquisitions, the Group draws on the latest developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions and the most comprehensive range of testing methods.

As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients’ increasingly stringent quality and safety standards and the expanding demands of regulatory authorities around the world.

The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP). 

Important disclaimer

This press release contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgment of Eurofins Scientific’s management as of the date of this release. These forward-looking statements are not guarantees for future performance, and the forward-looking events discussed in this release may not occur. Eurofins Scientific disclaims any intent or obligation to update any of these forward-looking statements and estimates. All statements and estimates are made based on the information available to the Company’s management as of the date of publication, but no guarantee can be made as to their validity.

Eurofins provides in the Income Statement certain alternative performance measures (non-IFRS information such as “Adjusted Results¹ and Separately Disclosed Items²”) that exclude certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends.

 In addition, Eurofins shows the following measures: “EBITDA⁴, EBITAS⁵” in the Income Statement and “Organic growth⁹” with the objective to be close and consistent with the information used in internal Group reporting to measure the performance of Group companies and information published by other companies in the sector.

 Management believes that providing these APMs (Alternative Performance Measures) enhances investors' understanding of the company’s core operating results and future prospects, consistent with how management measures and forecasts the company’s performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. This information should be considered in addition to, but not in lieu of, information prepared in accordance with IFRS. These APMs are described in more detail in the Consolidated Financial Statements 2016 in Notes 1.28 and 1.29.