RECORD FREE CASH FLOW GENERATION ALONG WITH GROWTH IN REVENUES AND

PROFITABILITY FOR DIASORIN IN THE FIRST 9 MONTHS OF 2019

FIRST 9 MONTHS 2019 RESULTS

REVENUES: € 525.1 million, +6.3% (+4.2% at CER).

Solid sales performance of immunodiagnostic tests driven by both the upward trend in sales of CLIA tests, net of Vitamin D (+11.4%), and molecular diagnostics (+14.6%). Positive impact of foreign exchange rates on sales amounting to about € 10.3 million.

Net of sales in countries where the Group operates through local distributors, revenues growth would be of 9.1% (+6.8% at CER).

EBITDA: € 208.9 million, +11.7% (+9.2% at CER), equal to 39.8% of Group revenues (39.7% at CER).

Result driven by the upward trend in the Gross Profit, following robust sales of specialty tests and the favorable channel mix, with strong revenues in countries where the Group has a direct presence, more than compensating the negative sales' trend in the countries where the Group operates through third-party distributors.

EBIT: € 165.6 million, +10.9%, equal to 31.5% of Group revenues.

NET PROFIT: € 126.7 million, +8.5%, equal to 24.1% of Group revenues.

NET FINANCIAL POSITION: +€ 132.8 million at September 30, 2019 (+€ 75.3 million at December 31, 2018). Net of the negative impact resulting from the adoption of IFRS 16 (€ 29.5 million), NFP would be positive by € 162.3 million.

FREE CASH FLOW: € 138.3 million in the first 9 months of 2019 (€ 100.6 million in the first 9 months of 2018).

LIAISON/LIAISON XL: net placements of +307 units (+363 LIAISON XL and -56 LIAISON) in the first 9 months of 2019, for an overall total of 8,156 units at September 30, 2019.

2019 GUIDANCE AT CER CONFIRMED:

  • REVENUES: growth between 5.0% and 8.0%.
  • EBITDA MARGIN: incidence on Group revenues comparable to 2018 EBITDA margin result.

1

Saluggia (Italy), November 6, 2019 - The Board of Directors of DiaSorin S.p.A. (FTSE MIB: DIA), a global leader in the production of diagnostic tests, met today in Saluggia under the Chairmanship of Mr. Gustavo Denegri, and examined and approved 9M 2019 consolidated economic and financial results.

9M

change

Amounts in million of euros

2018

2019

amount

%

%

@ current

@ CER

Revenues

494.0

525.1

+31.1

+6.3%

+4.2%

CLIA tests

325.4

354.1

+28.6

+8.8%

+7.0%

ELISA tests

69.8

72.3

+2.5

+3.6%

+1.7%

Molecular tests

40.3

46.2

+5.9

+14.6%

+8.6%

Instruments sales and other revenues

58.4

52.5

-5.9

-10.2%

-11.3%

EBITDA

187.1

208.9

+21.8

+11.7%

+9.2%

EBITDA margin

37.9%

39.8%

+191 bps

EBIT

149.3

165.6

+16.3

+10.9%

EBIT margin

30.2%

31.5%

+131 bps

Net profit

116.8

126.7

+9.9

+8.5%

Q3

change

Amounts in million of euros

2018

2019

amount

%

%

@ current

@ CER

Revenues

162.8

174.8

+12.0

+7.4%

+5.3%

CLIA tests

108.3

117.4

+9.2

+8.5%

+6.8%

ELISA tests

23.7

24.1

+0.4

+1.7%

-0.3%

Molecular tests

11.0

15.4

+4.4

+39.8%

+33.9%

Instruments sales and other revenues

19.8

17.9

-1.9

-9.7%

-11.8%

EBITDA

58.9

69.7

+10.8

+18.3%

+16.2%

EBITDA margin

36.2%

39.9%

+366 bps

EBIT

46.3

55.4

+9.1

+19.7%

EBIT margin

28.4%

31.7%

+327 bps

Net profit

35.9

42.7

+6.8

+18.9%

Q3 2019 HIGHTLIGHTS

PRODUCT DEVELOPMENT

  • IMMUNODIAGNOSTICS:
    • launch of HCV test for hepatitis C diagnosis in the U.S. market; the test, already available on DiaSorin CLIA menu across all markets except the U.S, is the first me-tootest to be launched as part of the strategic agreement with Beckman Coulter to serve the U.S. market by 2020 with a complete panel of hepatitis and retrovirus tests.
    • launch in the U.S. market of ZIKA Capture IgM II test for Zika virus infection detection; the test, already autohrized for emergency use-only since April 2017, received the commercial clearance, confirming the increasing DiaSorin role in the U.S. market as a relevant infectious diseases player.
  • MOLECULAR DIAGNOSTICS:
    • launch of VZV Direct Kit in Europe for the detection of Varicella-Zoster Virus (VZV) from both cutaneous and mucocutaneous swab specimens.

2

COMMENT ON RESULTS

The foreign exchange market trend in the first 9 months of 2019 highlighted a depreciation of the Euro against the U.S. Dollar and Mexican Peso when compared with the first 9 months of 2018. Conversely, the Euro appreciated vis-à-vis the Brazilian Real and Australian Dollar.

Chinese Yuan and British Pound were essentially stable vs. the Euro.

U.S.

Brazilian

Chinese

Australian

Mexican

British

Dollar

Real

Yuan

Dollar

Peso

Pound

Euro

-5.9%

+1.6%

-0.8%

+2.0%

-4.9%

-0.1%

Source: Banca d'Italia

CONSOLIDATED

REVENUES

Revenues: € 525.1 million in the first 9 months of 2019, +6.3% (+4.2% at CER) compared to the first 9 months of 2018, on the back of solid CLIA sales, net of Vitamin D, and molecular diagnostic sales.

It should be noted that sales increased by 9.1% (+6.8% at CER) when excluding the negative trend recorded in countries where the Group operates through local distributors.

In the first 9 months of 2019, foreign exchange rates had a positive impact of about € 10.3 million on Group revenues.

Sales trend as follows:

  • CLIA tests, net of Vitamin D: +11.4% (+10.2% at CER)
  • Vitamin D (CLIA test): +1.1% (-2.3%at CER)
  • ELISA tests: +3.6% (+1.7% at CER)
  • Molecular tests: +14.6% (+8.6% at CER)
  • Instruments sales and other revenues: -10.2% (-11.3%at CER)

In the first 9 months of 2019, the net balance of units installed amounted to +307, increasing the total number of installed instruments to 8,156 units. LIAISON XL confirmed its successful trend with 363 instruments installed for an overall total of 4,364 units, equal to ca. 53% of the total installed base.

In Q3'19, revenues increased to € 174.8 million, +7.4% (+5.3% at CER) compared to Q3'18.

The positive CLIA sales performance, registered in the first two quarters of the year, was also confirmed in Q3 as a result of the upward trend both in CLIA sales, net of Vitamin D, and in molecular diagnostics.

In Q3'19, foreign exchange rates had a positive impact of about € 3.4 million on Group revenues.

When excluding the negative trend recorded in countries where the Group operates through local distributors, sales increased by 11.0% (+8.9% at CER).

Sales trend as follows:

  • CLIA tests, net of Vitamin D: +10.8% (+9.4% at CER)
  • Vitamin D (CLIA test): +1.3% (-1.5%at CER)
  • ELISA tests: +1.7% (-0.3% at CER)
  • Molecular tests: +39.8% (+33.9% at CER)
  • Instruments sales and other revenues: -9.7% (-11.8%at CER)

3

The following provides the breakdown of the Group consolidated revenues by geographic area.

REVENUES BY

GEOGRAPHY

9M

Change

Amounts in millions of euros

2018

2019

amount

%

@ current

@ CER

Europe and Africa

227.6

242.5

+14.8

+6.5%

+6.3%

% on total revenues

46.1%

46.2%

USA and Canada

139.3

154.5

+15.2

+10.9%

+4.5%

% on total revenues

28.2%

29.4%

Asia Pacific

95.5

97.9

+2.4

+2.5%

+2.0%

% on total revenues

19.3%

18.6%

Latin America

31.5

30.3

-1.3

-4.0%

-4.9%

% on total revenues

6.4%

5.8%

Total

494.0

525.1

+31.1

+6.3%

+4.2%

Q3

Change

Amounts in million of euros

2018

2019

amount

%

@ current

@ CER

Europe and Africa

71.5

78.1

+6.7

+9.3%

+8.8%

% on total revenues

43.9%

44.7%

USA and Canada

46.1

53.3

+7.2

+15.5%

+10.4%

% on total revenues

28.3%

30.5%

Asia Pacific

34.9

33.2

-1.6

-4.7%

-5.7%

% on total revenues

21.4%

19.0%

Latin America

10.4

10.2

-0.2

-1.5%

-4.4%

% on total revenues

6.4%

5.8%

Total

162.8

174.8

+12.0

+7.4%

+5.3%

Europe and Africa

Revenues in the first 9 months of 2019 were € 242.5 million, +6.5% (+6.3% at CER) compared to the first 9 months of 2018, primarily on the back of solid CLIA sales.

In Q3'19, revenues were € 78.1 million, +9.3% (+8.8% at CER), with a positive contribution from all geographies in the area.

  • Italy:
    • 9M'19: +20.2% (local market: +2.3%)1; upward trend in Vitamin D and CLIA sales, primarily Gastrointestinal Infections, PCT and Latent Tuberculosis.
    • Q3'19: +17.2%.
  • Germany:
    • 9M'19: +2.3% (local market: -3.1%)1; growth of CLIA sales, primarily Gastrointestinal Infections, Infectious Diseases and Hepatitis, partially offset by lower ELISA sales.
    • Q3'19: +5.6%.
  • France:
    • 9M'19: -3.6% (local market: -1.5%)1, mainly due to the introduction of new policies that limit the public reimbursement of some specialty tests and to lower ELISA sales.
    • Q3'19: -4.2%.
  • Export:
    • 9M'19: -14.4% at CER, mainly due to seasonality of some tenders and lower instruments sales.
    • Q3'19: +8.5% at CER.

1 Source: latest EDMA data available

4

USA and Canada

Revenues in the first 9 months of 2019 were € 154.5 million, +10.9% (+4.5% at CER) compared to the first 9 months of 2018.

Continued growth in immunodiagnostic sales, equal to +9.2% (+2.9% at CER). It is worth to highlight the outstanding CLIA performance, net of Vitamin D (+14.4% at CER), partly offset by the decline in Vitamin D sales.

Positive contribution from molecular diagnostics, +16.3% (+9.4% at CER).

In Q3'19, revenues were € 53.3 million, +15.5% compared to Q3'18 (+10.4% at CER).

Strong performance of both CLIA panel, net of Vitamin D (+15.6% at CER), and molecular tests (+38.1%, no longer affected by the negative impact deriving from flu tests seasonality).

Asia Pacific

Revenues in the first 9 months of 2019 were € 97.9 million, +2.5% (+2.0% at CER), on the back of the steady growth of CLIA sales in China and positive sales trend in the Australian market.

In Q3'19, revenues were € 33.2 million, -4.7% compared to Q3'18 (-5.7%at CER); this trend was fully attributable to the negative Export market performance in the Region.

  • China:
    • 9M'19:+9.2% in local currency; growth in revenues from CLIA tests, primarily Hepatitis, Prenatal Screening and Infectious Diseases panels along with the positive performance of Thyroid test.
    • Q3'19: +6.6% in local currency; CLIA business continuously growing low double-digits, along with lower instruments sales and slowdown in ELISA tests.
  • Australia:
    • 9M'19: +9.0% in local currency; growth driven by positive trend in CLIA sales, particularly Gastrointestinal Infections, Prenatal Screening and Infectious Diseases. Molecular kits and instruments sales confirmed an upward trend.
    • Q3'19:+5.7% in local currency.
  • Export:
    • 9M'19: -11.0% at CER, mainly due to seasonality of some tenders and lower instruments sales.
    • Q3'19: -26.3% at CER.

Latin America

Revenues in the first 9 months of 2019 were € 30.3 million, -4.0% (-4.9%at CER), due to the Brazilian market performance and reduced instruments sales in countries served through third-party distributors.

Revenues in Q3'19 were € 10.2 million, -1.5% (-4.4%at CER) compared to Q3'18.

  • Brazil:
    • 9M'19: -3.5%in local currency; the result was negatively affected by the decline in Vitamin D and ELISA Murex sales.
    • Q3'19: +7.1% in local currency.
  • Mexico:
    • 9M'19: +8.6% in local currency; positive contribution from CLIA sales, mainly Infectious Diseases, Hepatitis and Autoimmunity.
    • Q3'19: +4.6% in local currency.
  • Export:
    • 9M'19: -12.6%at CER; mainly due to reduced Murex ELISA sales and lower instruments sales.
    • 3Q'19: -19.8% at CER.

5

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DiaSorin S.p.A. published this content on 06 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2019 12:49:00 UTC