Villepinte, March 26, 2019 – Guerbet (FR0000032526), a global specialist in contrast agents and solutions for medical imaging, is announcing its consolidated annual results for 2018. 

On March 26, 2019, the Board of Directors approved the financial statements for the period ended December 31, 2018. The audit procedures have been completed, and the statutory auditors’ report is being prepared.

The reported revenue of €789.6 million, down 2.2%, was affected by an unfavourable exchange rate effect of €36.1 million. The main exchange rate impacts came mainly from the Brazilian real (€10.6 million), the US dollar (€7.6 million), the Turkish lira (€5.5 million), and the Argentine peso (€3.1 million).

At constant exchange rates, revenue totalled €825.7 million, representing 2.3% in fully organic growth. Diagnostic Imaging revenue at constant exchange rates decreased slightly to €722.6 million (-0.7%) compared with the 2017 financial year. The Imaging Intervention activity confirmed its strong growth with revenue at constant exchange rates at €67.2 million, up 18.6%. 

Reported EBITDA totals €110.6 million. For the first time, it incorporates the full-year impact of the arrival of the Dotarem® generic in Europe. It also reflects the efforts made under the GEAR 2023 plan with the switch to a direct distribution organisation in Japan, stronger positioning in countries with high commercial potential, and the costs associated with the transition to phase III for gadopiclenol, Dotarem’s successor.

Operating Income totalled €69.9 million, or 8.9% of revenue.

Net income was stable at €46.8 million compared with €46.2 million in 2017. This figure incorporates a favourable change in the effective tax rate to 29.5%.

Sound financial position, refinancing of the Group’s debt

The Group enjoys solid fundamentals. Equity increased by €24.6 million to €366.8 million, and net debt amounts to €308.7 million. With €98.8 million in cash flow, Guerbet has a solid financial position with leverage (Net Debt/EBITDA) of 2.79.

The Board of Directors will propose a dividend of €0.85 per share to the shareholders at the General Meeting on May 24, 2019.

In order to contribute to the Group’s development as part of its GEAR 2023 strategic plan, and in view of its debt capacity, Guerbet signed a five-year €500 million credit agreement on February 13, 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.

Executive Committee strengthening

As part of its GEAR 2023 growth strategy, the Group has decided to appoint Jean-François Le Martret as Deputy CEO with two specific missions: M&A operations and deployment of the « Cost to Win » project. The Group will welcome a new CFO, Jérôme Estampes from 1 April. He has spent most of his career in international cosmetics companies (Crown, Coty, Pat McGrath).

2019 outlook

In 2019, the Group anticipates a moderate sales growth. Dotarem will continue to benefit from higher volumes and from the switch to direct distribution in Japan but will be impacted by a continued price decrease and by the arrival of generics in new countries. Guerbet also has development drivers in Interventional Imaging and digital solutions. In 2019, the start of sales of the Accurate Medical Therapeutics DraKon® and SeQure® microcatheters in the US, and then in Europe once the CE marking is obtained, is a growth area in Guerbet’s strategy. In addition, the Group should benefit from the full-year contribution of Lipiodol’s indications registered in new countries in 2018.  

The financial position for the current year should benefit from a significant improvement in cash flow with a positive change in the WCR, particularly through the decrease in inventories.