Eurobio Scientific

STRONG GROWTH OF 2019 ANNUAL RESULTS - Seite 2

The decrease in the gross margin is linked both to the increase of the US dollar in 2019 and to the reallocation of expenses previously classified as general and administrative expenses.
In the end, the results are growing faster than the turnover. EBITDA continued to grow at + € 7.0 million compared to + € 5.0 million in 2018, a + 40% increase. Operating profit amounted to + € 3.4 million compared to + € 1.6 million last year (+ 112.5%).

R&D spending remains at - € 1.6 million in 2019 : efforts are concentrated on the development of new diagnostic tests with potential for rapid market access, in particular with the EuroBioPlex range in molecular biology. They allow the Company to benefit from € 0.4 million in Research Tax Credit.

Financial expenses amounted to - € 0.7 M, down compared to 2018 with a decrease in interests paid in particular on the mezzanine debt contracted in 2017. These charges are offset by a foreign exchange gain of + € 0.8 million linked to the revaluation of financial assets in dollars.

The extraordinary result of - € 0.5 million is primarily related to the Group's last commercial restructuring expenses.

In 2019, the Group recognized a tax income of + € 3.0 million, corresponding mainly to the activation of two years of loss carryforwards, Eurobio Scientific being now taxable. After taking into account € 2.8 million in amortization of goodwill, the net result for 2019 is positive, for the first time in the history of the Group, with a profit of + € 3.2 million, compared to a 2018 loss of - € 2.8 million. Excluding amortization of goodwill and tax income, net profit was + € 3.0 million.

The total amount of cash was € 7.6 million as of December 31, 2019 and shareholders' equity was € 33.6 million. Financial debt is down to € 15.1 million, excluding leasing, compared to € 20.0 million at the end of 2018. This 25% decrease reflects the group's effort to further deleverage.

Denis Fortier, Deputy Chief Executive Officer of Eurobio Scientific said: "Achieving our 2020 turnover target almost a year ahead is concurrent with a significant increase in our profitability. Eurobio Scientific continues to benefit from the virtuous effect of an organization structured for growth, with expenses that are growing much more slowly than turnover. "
“Good profitability allows us to strengthen our capacity to produce and distribute diagnostic tools essential for medicine. This is how we were able to mobilize quickly and offer a full range of tests and equipment for public and private laboratories which are on the front line in the fight against the COVID-19 epidemic. I would like to salute their efforts and thank our employees for their commitment during this unprecedented crisis. "Concludes Jean-Michel Carle, Chairman and CEO.