2020 half-year results
- Revenue affected by the COVID crisis
- -9.2% at current exchange rates at €363.7 million
- -8.4% at constant exchange rates (CER)1 at €367.1 million
- Satisfactory results in the midst of COVID
- Strict management of operating costs
- EBITDA margin rate of 14.7% of revenue
- Operating income of €25.4 million
- Net income of €8.2 million
- Improvement of the already very solid financial structure
- Sharp improvement in WCR
- Cash flow generation increase
- Net debt decrease
- Continued transformation of the Group
- Development strategy roadmap maintained: diagnostic imaging, interventional imaging, digital solutions, and artificial intelligence
- Reinforcement of the Executive Committee
- 2020 objectives: EBITDA margin around 14%
- Second-half revenue comparable with the first half, leading to a decrease of approximately 10% over the year at CER
- Long-term reduction of structural costs, improving operational leverage
- Acceleration of the transformation
Villepinte,
On the occasion of this publication,
The health crisis had a major impact on the first half of the year. Since the crisis began,
The postponement of non-essential radiological examinations and procedures by radiologists, combined with spontaneous cancellations by certain patients and the increase in longer disinfection and protection measures due to SARS-Cov-2, impacted activity, especially MRI but also
The development of artificial intelligence solutions and digital solutions continued without any impact on project progress or on their actual market release date. Regarding Gadopiclenol, the recruitment of phase IIIb patients was logically slowed down during the lockdown, delaying the process in progress accordingly. The market release is still planned for the first part of 2023.
Revenue was €363.7 million at
Diagnostic Imaging revenue was €308.4 million, compared with €354.6 million in the first half of 2019, down 13.0% (-11.9% at CER). The main reason was the impact of the health crisis following the lockdown in most countries.
- MRI sales decreased 18.7% (identical at constant exchange rates) to €110.9 million;
CT/Cath Lab revenue was down 9.7% at €196.0 million with reduced volumes across all products in the range except for Xenetix® used in some countries for the diagnostic of the most serious Covid cases (At CER, revenue for the half-year period was €199.9 million, down -7.9%).
Interventional Imaging continued to be driven by Lipiodol® sales. Its revenue totaled €36 million, up 3.1% (+1.9% at CER) from €34.9 million in the same period last year.
Satisfactory results under unprecedented health conditions
In millions of euros Consolidated financial statements (IFRS) | H1 2019 | H1 2020 |
Revenue | 400.6 | 363.7 |
EBITDA (2) | 61.6 | 53.3 |
% of revenue | 15.4% | 14.7% |
Operating income | 22.3 | 25.4 |
% of revenue | 5.6% | 7.0% |
Net income | 19.0 | 8.2 |
% of revenue | 4.8% | 2.3% |
Net Debt | 358.1 | 269.3 |
The financial statements for the first half of 2020, approved by the Board of Directors on
EBITDA stood at €53.3 million compared with €61.6 million in the first half of 2019. However, it represents 14.7% of revenue for the period, which was a satisfactory performance for the Group given the significant drop in activity.
The EBITDA margin rate was maintained thanks to strict budgetary discipline. It concerned sales and marketing costs and the acceleration of the “Cost to Win” plan. The total reduction of expenditures over the first half of the year was around €20 million.
As of
Sound financial structure
As of
Stronger governance
To accelerate its transformation and achieve its strategic ambitions, the Group recently announced the reinforcement of its Executive Committee with four new functions dedicated to Diagnostic Imaging and Interventional Imaging franchises and its
2020 outlook
The future of the health situation remains uncertain, and the gradual upturn in activity is still inconsistent. July benefited from a restocking effect, but activity fell in August.
In the coming months, the Group’s activity is expected to be affected by the initial sales of the generic of Dotarem® in
Given the impact of the generic and against the backdrop of a stabilized health crisis with normal operation of the healthcare system, the Group expects second-half revenue to be largely comparable with the first-half revenue, down 12% compared with 2019 at constant exchange rates. On this basis, the Group expects EBITDA for the 2020 financial year to be around 14% of revenue.
Lastly, the Group is confident that it can lower its level of structural costs for the long term with expectations of a very favorable impact on profitability once business is back to normal.
(1) At constant exchange rates: amounts and rates of growth are calculated by canceling 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.
(2) EBITDA refers to operating income with the net allowance for amortization, depreciation, and provisions added back in.
Upcoming events:
Publication of revenue at
About
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 authorization is granted), decisions by regulatory authorities (such as the
For more information about
Contacts
Actifin |
Jérôme Estampes Chief Financial Officer +33 (0)1 45 91 50 00 | +33 (0)1 56 88 11 25 blehari@actifin.fr Press Jennifer Jullia +33 (0)1 56 88 11 19 jjullia@actifin.fr |
Attachment
- 20200903 - Half-year results
Source:
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