Strong Q3 2014 performance on continued positive trends

• Revenues increased 18.6% in Q3 2014 to EUR 370m (18.9% at constant currency exchange rates), bringing revenues in the first nine months to over EUR 1 billion.
  • Group organic growth* in Q3 2014 was 5.5% (7.5% excluding businesses in significant restructuring). For the first nine months of 2014, group organic growth stood at over 6% (over 8% excluding businesses in significant restructuring).
  • Strong performance across most areas of our business.

Comments from the CEO, Dr. Gilles Martin: "Eurofins' strong performance in the first nine months of 2014 is a reflection of both the defensiveness of the business, and the strength that we have built, and continue to build into our network. Despite the growing economic uncertainty in some of the countries where we are active in, demand remains strong for our services. For the businesses that required it, we have also been able to make good progress in the reorganization programmes that will ensure long-term competitiveness. For the most part, these programmes should be completed this year. In spite of these reorganizations of a few businesses and the associated contracts terminations we initiated, Eurofins still managed to generate organic growth above our objective. We remain confident that we should be able to deliver on our objectives for the full year 2014, and stay well on track towards our 2017 goals."

Revenues in the third quarter of 2014 rose 18.6% year-on-year to EUR 370m, bringing total revenues for the nine months of the year to EUR 1,014m, representing growth of 14.9% over the same period last year (16.7% at constant currency exchange rates), over 6% of which was organic. Adjusted for businesses in significant restructuring, organic growth was over 8%. During the third quarter, Eurofins completed 5 acquisitions including ViraCor and Anatech, bringing total transactions completed to 14 in the first nine months of the year.

The resilience of the Group's businesses is reflected in the sustained operating momentum across most of its markets. The US, Eurofins' largest market generating 24% of revenues, achieved organic growth well above the Group's objective despite the continued impact of the reorganization of the central laboratory and discovery pharmacology businesses. In Europe, Germany (17% of Group revenues) continues to be a major growth driver, generating over 10% revenue growth, as Eurofins leverages its scale to further ramp up its market share.  In France, the impact of the ongoing restructuring of IPL was partially offset by the strong performance in food testing and other areas of environmental testing. Trends continue to be positive in the rest of Europe across Eurofins' businesses, whilst the strong growth generated by the Group's businesses in emerging markets and the Asia Pacific region were somewhat muted by currency headwinds.

Overall, the continued positive trends support the management's confidence in achieving or exceeding the Group's objectives of generating revenues of EUR 1.4 billion and adjusted EBITDA of EUR 250m for the full year 2014 (at 2013 constant exchange rates).

The management of Eurofins is hosting a conference call at 15h30 CET today to discuss the NM 2014 revenue and growth developments. 

*Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) - non-IFRS measure calculating the growth in revenues during that period between 2 successive years for the same scope of businesses using the same exchange rates but excluding discontinued operations.

  Organic growth excluding businesses in significant restructuring - non-IFRS measure based on the same calculation as for organic growth as defined above, but excluding businesses in significant restructuring (mainly IPL, Central laboratory and Discovery Services) as defined for the Separately Disclosed Items.

  For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have been consolidated in the Group's income statement of the previous financial year (Y-1). Revenue contribution from companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been consolidated as from 1st January Y-1. All revenues from businesses acquired since 1st January Y are excluded from the calculation. 

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Notes for the editor:

Eurofins - a global leader in bio-analysis

Eurofins Scientific is the world leader in food and pharmaceutical products testing. It is also number one in the world in the field of environmental laboratory services and one of the global market leaders in agroscience, genomics, discovery pharmacology and central laboratory services.

With 16,000 staff in more than 200 laboratories across 36 countries, Eurofins offers a portfolio of over 100,000 reliable analytical methods for evaluating the safety, identity, composition, authenticity, origin and purity of biological substances and products. The Group provides its customers with high-quality services, accurate results in time and expert advice by its highly qualified staff.

Eurofins is committed to pursuing its dynamic growth strategy by expanding both its technology portfolio and its geographic reach. Through R&D and acquisitions, the Group draws on the latest developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions and the most comprehensive range of testing methods.

As one of the most innovative and quality oriented international players in its industry, Eurofins is ideally positioned to support its clients' increasingly stringent quality and safety standards and the expanding demands of regulatory authorities around the world.

The shares of Eurofins Scientific are listed on the Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP).

Important disclaimer:

This press release contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgement of Eurofins Scientific’ management as of the date of this release. These forward-looking statements are not guarantees for future performance, and the forward-looking events discussed in this release may not occur. Eurofins Scientific disclaims any intent or obligation to update any of these forward-looking statements and estimates. All statements and estimates are made based on the information available to the Company’s management as of the date of publication, but no guarantee can be made as to their validity.