MAINTAIN HIGH-LEVEL RESULTS IN 2021

MAINTAIN HIGH-LEVEL RESULTS IN 2021

• Total turnover of €184.7 million
• Growth in non-COVID activities (+14%)
• Solid EBITDA at €78m
• Increase in cash generation to €66m (€55m in 2020)
• Cash at €102m and decrease in financial debt (€11m)
• Acceleration of strategic deployment focused on proprietary products, international development and new market segments

Paris, April 6, 2022 –7:30 a.m.

Eurobio Scientist (FR0013240934, ALERS), a leading French group in specialty in vitro medical diagnostics, today presents its 2021 consolidated annual results, established according to French accounting standards and approved by the company’s Board of Directors which met on 5 April 2022.¹.

In 2021, Eurobio Scientific maintained a high level of revenue and earnings, combining strong COVID diagnostics activity amid sharply lower selling prices, and a continued increase in non-COVID business. The Group has managed to preserve its margins thanks to the increase in the share of proprietary products, which represent 25% of sales in 2021. Eurobio Scientific ended the year with 102.4 million euros in cash and 10.7 million euros in financial debt. These significant resources will support organic growth, especially through the intensification of R&D, international development and external growth in the years to come.

A year 2021 again driven by the health crisis

Eurobio Scientific achieved a turnover of €184.7 million in 2021, close to the level established in 2020. This figure reflects:
– A still high level of sales linked to the diagnosis of COVID (€102.6 million or 56% of sales), despite prices falling sharply compared to the previous year. The activity remained mainly focused on products with higher added value, namely PCR tests for public and private laboratories, historical customers of the Group. The share of proprietary products was maintained thanks to a reinforced R&D capacity, total control of regulatory affairs and a new high-capacity manufacturing tool. This is how 5 new proprietary tests were put on the market in 2021.
– Continued growth of traditional activities excluding COVID (€81.5m or 44% of turnover). Eurobio Scientific has benefited in particular from increased visibility linked to the new dimension acquired by the Group over the past 2 years, and from the increase in the number of instruments installed, a growth engine.

Eurobio Scientific has also entered into new distribution partnerships aimed at providing healthcare professionals and patients in France with innovative high-impact products.
Finally, the development of international sales continued during the year, supported by the foreign subsidiaries of the TECOmedical Group (Switzerland, Germany) and Pathway Diagnostics (United Kingdom), as well as by the conquest of new customers, particularly in the Middle East.

In 2021, these revenues were supplemented by payments received from historical partners in the therapeutic context for a total of 0.5 million euros, mainly related to the transition to the clinical phase of a molecule developed jointly with AbbVie ( formerly Allergan).

Maintain a high level of results

With the increase in volumes sold, the impact of lower prices for COVID diagnostic tests was contained and the gross margin level was maintained in 2021 at 56%, a historically high level, compared to 59% in 2020 .gross margin amounted to €102.8 million, compared to €110.7 million in 2020.

Operating expenses reflect this high level of activity in terms of volume, the continued structuring of the organization and the increase in production and logistics capacities. They remain under control, with an increase of 12%, to €29.8 million, including a significant increase of 54% in R&D expenditure (€3.4 million) in line with the strategy.

Results remain at a historically high level, with EBITDA at €77.9 million (€88.2 million in 2020) and operating profit at €72.9 million (€84.0 million in 2020).

The financial result is slightly positive (+€0.1m compared to -€0.4m in 2020) and notably includes capital gains on securities, and exchange losses linked to the valuation of assets in dollars, lower to what was recorded at the end of the financial year. Previous exercice.

In view of the 2021 results, the Group has used all of the loss carryforwards generated within its tax consolidation group, and has not activated any additional loss carryforwards. Corporation tax amounted to €10.8 million compared to €7.4 million in 2020.

After taking into account €2.8 million of goodwill amortization, net income for 2021 stands at €60.5 million compared to €73.5 million in 2020.

Strong cash generation at €65.9m (€54.9m in 2020)

With a high level of results and a controlled working capital requirement, Eurobio Scientific’s activities generated cash flow of €65.9 million in 2021, i.e. €11 million more than in 2020.
Total cash amounted to €102.4 million as of December 31, 2021 and equity to €160.5 million. Financial debt fell sharply to €10.7 million, mainly with the full repayment of the €10 million state-guaranteed loan taken out in 2020. It includes bank loans for €8.9 million (of which €6.3 million medium term) and €1.7 million of remaining obligations.

Perspectives: a new dimension

Eurobio Scientific now has very significant financial resources to pursue the deployment of its strategy, centered on increasing the share of proprietary products, pursuing international expansion and opening up new market segments.

This strategy has already been initiated with the intensification of R&D which will be amplified to maintain strong product innovation, mainly in molecular biology, in the field of infectious diseases but also in other pathologies. It also involves the development of new synergies with its European subsidiaries TECOmedical and Pathway Diagnostics, beyond what has already been done in the COVID segment since 2020. These R&D and/or international developments could be accelerated by acquisitions or takeovers. targeted participation plans, in line with the Group’s orientations. three strategic areas. This is evidenced by the acquisition of a stake at the end of 2021 in Usense Healthcare, a start-up specializing in point-of-care medical diagnostics based on urinary analysis and artificial intelligence.

At the same time, to support its strategy, the Group continues to selectively develop its distribution portfolio. Eurobio Scientific has thus renewed its non-exclusive partnership with the Korean group Seegene, at least until 2023, and signed distribution partnerships in new areas. The Group has become the exclusive distributor in France of HIV self-tests from the American Orasure, which allows it to strengthen its presence with pharmacy networks. Eurobio Scientific has also entered into partnerships with the Alcor and BenQ laboratories, and is studying new distribution agreements in the field of “Point of Care” proximity tests, or connected biology based on artificial intelligence.

In addition to this strategic deployment, the entry into Eurobio Scientific’s capital of the investment funds managed by NextStage AM as part of its “Pepites and Territories” program should take place before the end of the second quarter of 2022.

Based on the new dimension acquired during 2020 and reinforced in 2021, Eurobio Scientific has all the assets to continue to meet, in France and internationally, the needs of laboratories, by deploying an offer combining its own innovative products and those of its partners. These strengths will also enable the Group to penetrate new markets, both in terms of customers and technologies, and to develop its presence in new territories.

Next financial meeting

General meeting of shareholders: June 13, 2022

1 The audit procedures on the consolidated accounts are still in progress by the statutory auditors.

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