GUERBET (EPA:GBT) Guerbet : 2018 revenue. Activity growth consistent with the objectives : +2.3% at constant exchange rates, or €825.7 million.

Transparency directive : regulatory news

14/02/2019 18:07

Press release

                                2018 revenue

Activity growth consistent with the objectives: +2.3% at constant exchange
                        rates, or EUR 825.7 million

Villepinte, 14 February 2019 - Guerbet (FR0000032526), a global specialist in
contrast agents and solutions for medical imaging, is reporting revenue of
EUR789.6 million at 31 December 2018, down 2.2% due to a very unfavourable
foreign exchange impact of EUR36 million. At constant exchange rates (CER),
revenue growth, completely organic, was 2.3%, in line with the announced
objective.

Consolidated Group revenue (IFRS)

                                     2018                  2018
                                  at current           at constant
In millions of euros,    Change    exchange     Change   exchange   Published
at 31 December            (%)       rates        (%)      rates*       2017

Sales in Europe          -9.4%      339.5       -7.6%     346.2       374.7
Sales in Other Markets   +4.1%      450.1      +10.9%     479.5       432.4
Total                    -2.2%      789.6       +2.3%     825.7       807.1

* At constant exchange rates: amounts and rates of growth are calculated by
cancelling out the exchange rate effect, which is defined as the difference
between the indicator's value for period N, converted at the exchange rate for
period N-1, and the indicator's value for period N-1.

2018 financial year highlights

> Presentation in April 2018 of the GEAR 2023 strategic plan, which aims to
  accelerate organic growth and generate external growth through acquisitions,
  particularly in the field of Interventional Imaging;

> Further development of NCE Gadopiclenol for MRI. Preclinical studies have
  demonstrated the efficacy and safety of use of this product, and its
  development will proceed to phase III starting in early 2019;

> Authorisation obtained from the FDA in the United States (510K) to market
  Accurate Medical Therapeutics microcatheters and start of sales at the end of
  2018;

> Acquisition of a new microsphere technology from Occlugel to strengthen the
  Interventional Imaging offering;

> In June, a strategic partnership signed with IBM Watson Health to develop and
  market together artificial intelligence solutions for earlier, more accurate
  diagnosis and therapeutic decision-making support for liver tumors;

> In October, launch of direct distribution in Japan, the world's number 2
  market;

> An extension of indications obtained in numerous countries for Lipiodol
  Ultra-Fluid(r) in Interventional Imaging for chemo-embolisation of liver
  tumors by microcatheter.

4th quarter 2018: slight increase in sales at CER confirmed

At current exchange rates, 4th quarter sales totalled EUR208.2 million versus
EUR205.7 million in fourth quarter 2017. The unfavourable foreign exchange
effect was EUR3.3 million.

At constant exchange rates, revenue for the period amounted to EUR211.5 million
compared with EUR205.7 million in 2017, a 2.8% increase, confirming the trend
observed in the nine first months, and which is mainly due to dynamic sales
growth outside Europe (+11.0%). In Europe, sales were down 7.1%. In this region
and at comparable periods, Dotarem(r) revenue was slightly down by 0.8%. This
is the expression of an increase in volumes due to a market evolution of linear
products towards macrocycle products, which is partly offset by a price
reduction due to the penetration of generics in Europe for more than two years.

4th quarter consolidated Group revenue (IFRS)

                                   Q4 2018               Q4 2018
                                  at current           at constant
In millions of euros,    Change    exchange     Change   exchange   Published
                          (%)       rates        (%)      rates*     Q4 2017

Sales in Europe          -8.6%       85.4       -7.1%      86.8        93.4
Sales in Other Markets   +9.4%      122.8      +11.0%     124.7       112.3
Total                    +1.2%      208.2       +2.8%     211.5       205.7

2018 financial year: activity in line with the objectives but affected by a
significant foreign exchange effect

The total foreign exchange effect in 2018 resulted in an unfavourable impact of
EUR36.1 million, or 4.5 points of growth, compared with EUR5.3 million in 2017.

In the Europe zone, at current exchange rates, revenue totalled EUR339.5
million, incorporating an unfavourable exchange rate impact of EUR6.7 million,
with Turkey alone accounting for more than EUR5 million. Sales at constant
exchange rates were down 7.6%. This decrease, mainly in France and Germany, was
due to the presence of a new generic form of Dotarem and was slightly less than
what the Group expected.

In Other Markets, revenue at current exchange rates increased 4.1% to EUR450.1
million, despite a significant negative foreign exchange impact of EUR29.4
million (Brazil and the US). At constant exchange rates, sales totalled
EUR479.5 million, up 10.9%.

Diagnostic Imaging revenue at constant exchange rates decreased slightly to
EUR722.6 million (-0.7%) compared with the 2017 financial year:

> On the MRI segment, despite the arrival of the generic form, the good level
  of Dotarem sales confirmed its status as the market's product of reference.
  This segment grew by 2.1% to EUR277.7 million overall, despite the planned
  decline of Optimark(r).

> On the CT/Cath Lab segment, the situation was mixed. Sales of Optiray(r) were
  down due to an unfavourable 2017 base effect, while sales of Xenetix(r) grew.
  The segment was down 3.2% overall at EUR363.8 million.

> The Injection Systems and Services (ISS) segment continued its growth (+2.5%)
  to reach EUR82.1 million.

The Interventional Imaging activity confirmed its status as a growth driver
with revenue at constant exchange rates of EUR67.2 million, up 18.6%. As a
reminder, supply difficulties affected the first nine months of financial year
2017.

After obtaining the 510k from the FDA, the first sales of Accurate Medical
Therapeutics microcatheters were made in December. The Group is expecting sales
to take off starting in 2019.

Refinancing of the Group's debt

In order to contribute to the Group's development as part of its GEAR 2023
strategic plan, Guerbet signed a five-year EUR500 million credit agreement on
13 February 2019 to refinance its existing debt. This contract was entered into
with nine financial partners, coordinated by BNP Paribas.
This new debt has a single covenant (net debt/EBITDA* = 4.0) over the life of
the loan.

* EBITDA: Operating Income + net allowance for amortization, depreciation and
provisions

2018 outlook

The Group anticipates a restated EBITDA close to 15% of sales at constant
exchange rates. The restated EBITDA excludes the foreign exchange rates effect
and two non-recurrent effects:
i) an exceptional profit due to the inventory revaluation of EUR15.6 million,
as previously anticipated and ii) an exceptional charge of EUR8 million. This
charge is the consequence of the Group's decision, at year end, to focus on the
reduction of the inventories which entailed the destruction of obsolete
products. This exceptional charge is offset by a provision reversal and does
not impact the Operational Income. These exceptional items have no impact on
the cash flow of the Company.

                               Upcoming events:

                      Publication of 2018 annual results
                         26 March 2019, after trading

About Guerbet

Guerbet is a pioneer in the contrast-agent field, with more than 90 years'
experience, and is a leader in medical imaging worldwide. It offers a
comprehensive range of pharmaceutical products, medical devices, and services
for diagnostic and interventional imaging to improve the diagnosis and
treatment of patients. With 8% of revenue dedicated to R&D and more than 200
employees distributed across its four centres in France, Israel, and the United
States, Guerbet is a substantial investor in research and innovation. Guerbet
(GBT) is listed on Euronext Paris (segment B - mid caps) and generated EUR790
million in revenue in 2018. For more information about Guerbet, please visit
www.guerbet.com

Forward-looking statements

Certain information contained in this press release does not reflect historical
data but constitutes forward-looking statements. These forward-looking
statements are based on estimates, forecasts, and assumptions, including but
not limited to assumptions about the current and future strategy of the Group
and the economic environment in which the Group operates. They involve known
and unknown risks, uncertainties, and other factors that may result in a
significant difference between the Group's actual performance and results and
those presented explicitly or implicitly by these forward- looking statements.

These forward-looking statements are valid only as of the date of this press
release, and the Group expressly disclaims any obligation or commitment to
publish an update or revision of the forward-looking statements contained in
this press release to reflect changes in their underlying assumptions, events,
conditions, or circumstances. The forward-looking statements contained in this
press release are for illustrative purposes only. Forward-looking statements
and information are not guarantees of future performance and are subject to
risks and uncertainties that are difficult to predict and are generally beyond
the Group's control. These risks and uncertainties include but are not limited
to the uncertainties inherent in research and development, future clinical data
and analyses (including after a marketing authorisation is granted), decisions
by regulatory authorities (such as the US Food and Drug Administration or the
European Medicines Agency) regarding whether and when to approve any
application for a drug, process, or biological product filed for any such
product candidates, as well as their decisions regarding labelling and other
factors that may affect the availability or commercial potential of such
product candidates. A detailed description of the risks and uncertainties
related to the Group's businesses can be found in Chapter 4.4 "Risk Factors" of
the Group's Registration Document filed with the French Financial Markets
Authority (AMF) under number D-18-0387 on 25 April 2018, available on the
Group's website (www.guerbet.com).

       For more information about Guerbet, please visit www.guerbet.com

Contacts

Guerbet

Jean-François Le Martret
Chief Financial Officer
+33 (0)1 45 91 50 00

Actifin

Financial Communications
Benjamin Lehari
+33 (0)1 56 88 11 25
blehari@actifin.fr

Press
Jennifer Jullia
+33 (0)1 56 88 11 19
jjullia@actifin.fr

GUERBET's latest news

20/03/2024 18:00

GUERBET (EPA:GBT) Guerbet : 2018 revenue. Activity growth consistent with the objectives : +2.3% at constant exchange rates, or €825.7 million.

Transparency directive : regulatory news

GUERBET's latest news

Other stories