Operational excellence at SYNLAB covers a number of programs. IT is a key enabler, and SYNLAB made important progress in various initiatives in Q1 2021: rollout of LIS solutions is progressing well (for example in France), and the ERP implementation is ongoing as planned in region South and in the UK.

In Q1, SYNLAB has also continued to implement its big modernization program, which aims at renewing more than 1,000 instruments across its labs network in the near future. March was marked by the go live of a fully automated solution in one of its largest labs, located in Augsburg (Germany), which will enable to handle several million tests per year and serve a growing number of customers.

Finally, the SALIX efficiency program enabled EUR 4.5 million of savings, in line with previous quarters and yearly targets.

3) ESG: Employee engagement as a key success factor

In March 2021, SYNLAB published its first ever ESG report. This report is the result of a preliminary materiality assessment started in 2020, reflecting on SYNLAB's most significant ESG risks and opportunities from both the company and its stakeholders' perspectives. SYNLAB's material ESG Topics have 3 main pillars: SYNLAB Green, SYNLAB Care and SYNLAB Citizenship, with clearly defined, measurable targets out to 2025.

Improving the group-wide employee engagement survey -SYNLAB Dialogue- scores year-on-year to 2025, is one of these targets. Results of the 2021 survey were shared with all employees in March and they are very encouraging: participation reached 65% (above 12,000 employees), in 30 countries plus headquarters. The employee engagement score, measured against 3 drivers (Say, Stay, Strive), increased significantly compared with last survey, showing growing employee engagement at SYNLAB.

4) Efficient capital deployment: M&A update (as of 30 April 2021)

M&A activity has resumed since January 2021, with 10 bolt-on acquisitions completed for a total Enterprise Value of c. EUR 44 million, already substantially above the total level of 2020.

SYNLAB further expanded its presence in Italy, with three bolt-on acquisitions in the Lazio region and one in the Napoli region. In addition, three bolt-on acquisitions were closed in France, one in Spain, one in Colombia and one in Germany. With the latter, completed early April, SYNLAB reinforced its presence in the Northern region through the acquisition of a cytology lab.

Governance update

In the context of the change in legal structure to a German stock corporation (AG), the Company also established a Supervisory Board. It is chaired by Prof. Dr. David Ebsworth. Prof. Ebsworth has over 40 years of experience in the healthcare industry. The Supervisory Board consists of twelve members with six shareholder representatives -of which 4 independent- and six employee representatives.

Outlook: EUR 3 billion revenue to be comfortably exceeded in 2021

SARS-CoV-2 testing assumptions

To date, SYNLAB has seen no slowdown in the monthly run-rate for SARS-CoV-2 testing revenues. SYNLAB anticipates the revenue-enhancing effects of SARS-CoV-2 testing to continue through 2021, with the net revenue-enhancing impact peaking during 2021 and decreasing, but remaining meaningful, in the mid-term.

Q2 2021 outlook

In Q2 2021, SYNLAB expects sustained activity in SARS-CoV-2 testing, underlying organic growth acceleration thanks to the commencement of services for the South East London (SEL) contract, which started on April, 1st 2021, and sustained M&A activity based on its strong pipeline, with 3 acquisitions already closed since 31 March 2021.

FY 2021 outlook

Based on the very strong start to the year which is, as described in the outlook section of the IPO prospectus, above anticipated levels, SYNLAB expects the EUR 3 billion revenue mark to be comfortably exceeded in 2021, with a very material contribution of SARS-CoV-2 testing.

The Group expects underlying organic growth to reach 10%, enhanced by the full roll-out effects of "For You" growth initiatives and the contribution of the SEL contract.

Based on the 10 acquisitions carried out since the beginning of the year and its strong M&A pipeline, SYNLAB expects its FY 2021 M&A spending to be in line with the EUR 200 million of M&A spending per annum set as mid-term guidance.

Unlevered free cash flow (pre-M&A) is expected to amount to EUR 300 to 350 million. Q1 2021 Segment performance

FRANCE (24% of Group revenue) 


                                  Q1 2021 Q1 2020  Growth 
Revenue                             229     118     +94% 
Adjusted operating profit           70      20      x3.5 
Adjusted operating profit margin   30.6%   17.1%  +13.5pts

France revenue grew by 94% in Q1 2021 at EUR 229 million compared with EUR 118 million in Q1 2020.

Organic growth was 93%, including:

- strong SARS-CoV-2 testing revenue contribution against a Q1 2020 which included a material SARS-CoV-2 attrition impact. SYNLAB recorded further volume growth compared with Q4 2020, with March 2021 testing volumes at the highest level since the start of the pandemic;

- underlying organic growth of 2.2%, including volume growth, positive impact of specific "For You" growth initiatives implemented since Q1 2020 (mainly around BCP network optimization) and stable prices.

Adjusted operating profit stood at EUR 70 million, representing a 30.6% margin (+13.5 pts vs. Q1 2020), reflecting the strong volume leverage of the business.

In Q1 2021, SYNLAB closed three bolt-on acquisitions in France representing total annualized revenue of EUR 14 million. GERMANY (19% of Group revenue) 


                                  Q1 2021 Q1 2020  Growth 
Revenue                             179     113     +58% 
Adjusted operating profit           46       6      x7.2 
Adjusted operating profit margin   25.9%   5.7%   +20.2pts

Germany revenue grew by 58%, all organically, in Q1 2021 at EUR 179 million compared with EUR 113 million in Q1 2020 including:

- material SARS-CoV-2 testing revenue contribution, with volumes reducing from Q4 2020 however, due to confinement measures in January and February. Volumes picked up again in March 2021;

- subdued reported underlying organic growth of 0.3%, due to a negative calendar impact (EUR 2 million) and volume softness in the West region, due to temporary resource constraints. Prices were broadly stable.

Adjusted operating profit stood at EUR 46 million, representing a 25.9% margin (+20.2 pts vs. Q1 2020). This major increase reflects the strong volume leverage of the business. SOUTH (28% of Group revenue) 


                                  Q1 2021 Q1 2020  Growth 
Revenue                             264     143     +85% 
Adjusted operating profit           64       9      x6.9 
Adjusted operating profit margin   24.1%   6.5%   +17.6pts

South revenue grew by 85% in Q1 2021 at EUR 264 million compared with EUR 143 million in Q1 2020.

Organic growth was 84% including:

- material SARS-CoV-2 testing revenue contribution, with further volumes growth compared with Q4 2020;

- underlying organic growth of 5.8%, with all countries recording growth except for Switzerland (13% of SOUTH revenue), which was mainly impacted by the rollover effect of 2020 customer losses, and, to a minor extent, price reduction implemented in December 2020. Other countries experienced volume growth and broadly stable prices and the positive impact of "For You" growth initiatives. Iberia (32% of SOUTH revenue) recorded low single digit underlying organic growth, while LATAM (16% of SOUTH revenue) and Italy (39% of SOUTH revenue) grew mid to high and double digit respectively, with Italy growth also lifted by a very positive working-day effect (+3 working days vs. Q1 2020).

Adjusted operating profit reached EUR 64 million, representing a 24.1% margin (+17.6 pts vs. Q1 2020). Margins were up across the board reflecting the strong volume leverage of the business.

In Q1 2021, SYNLAB closed four bolt-on acquisitions in the South segment, all located in Italy representing total annualized revenue of EUR 4 million. NORTH & EAST (29% of Group revenue) 


                                  Q1 2021 Q1 2020  Growth 
Revenue                             267     106    +152% 
Adjusted operating profit           100     10     x10.5 
Adjusted operating profit margin   37.6%   9.0%   +28.6pts

North & East was the fastest growing segment in Q1 2021, with revenue growing 152% at EUR 267 million compared with EUR 106 million in Q1 2020.

Organic growth was 155% including:

- material SARS-CoV-2 testing revenue contribution, with a sharp volume increase compared with Q4 2020. March testing was at the highest level since the start of the pandemic in a number of countries, also benefitting from short-term SARS-CoV-2 testing contracts in North Europe;

- underlying organic growth of 5.0%, driven by volume growth and positive pricing in many countries, further enhanced by specific "For You" growth initiatives. The UK and North^[7] (73% of NORTH & EAST revenue) grew slightly above segment growth, with Belgium and the UK clear outperformers in the quarter, thanks to volume growth and "For You" growth initiatives. Central Europe (19% of NORTH & EAST revenue) recorded low single digit growth with mixed performances across countries. Emerging markets (8% of NORTH & EAST revenue) recorded double digit growth.

Adjusted operating profit stood at EUR 100 million, representing a 37.6% margin (+28.6 pts vs. Q1 2020). Strong margin expansion reflected strong volume leverage, with further uplift driven by short-term SARS-CoV-2 testing contracts in North Europe. *** Conference call SYNLAB will hold its Q1'21 results conference call today at 3:00 PM CEST, hosted by Mathieu Floreani, CEO of SYNLAB and Sami Badarani, CFO of SYNLAB. Direct link to webcast by clicking here

For more information: 


Media contact:                +49 (0) 175 299 3048 
Carolin Amann, FTI Consulting Carolin.Amann@fticonsulting.com 
Investor contact:             +49 (0) 170 118 3753 
Mark Reinhard, SYNLAB         Mark.Reinhard@synlab.com About SYNLAB

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