Eurofins doubles dividends to shareholders
06 June 2011
At its Annual General Meeting (AGM) held on the 1st of June, 2011, the Board of Directors of Eurofins Scientific SE proposed to double the amount of dividends to be paid to its shareholders from profits generated by the Group in 2010 to EUR 0.20 per ordinary share. The resolution was duly passed and adopted accordingly. The move follows the strong results improvement in 2010, and reflects management's confidence in the Group's ability to deliver even significantly stronger performance in the medium term, as evidenced by the solid results in Q1 2011.
Comment from the CEO, Dr. Gilles Martin: "I am pleased to announce this increase in our shareholder remuneration. While still very modest in absolute terms, it highlights not only the improvements we have already achieved in our financial results, but also our commitment to our shareholders. More importantly, the increase in profit distribution demonstrates our confidence in achieving even better performance going forward as we reap the benefits from our investments in the last five years."
Eurofins generated net profit1 of EUR 25m and Free Cash Flow2 of EUR 26m in 2010 (versus a net loss and Free Cash Flow of EUR 1.4m respectively in 2009). The Group expects to be able to deliver even better performance in the medium term as the benefits from its investment and reorganization programs, in addition to stronger revenue growth, yield their full benefits, and should begin to be realized in 2011. Indeed, in Q1 2011, Eurofins already achieved a 7x increase in EBITAS3 compared to Q1 2010. The Group has set-out its medium-term objectives as follows:
- Revenue CAGR of c.14% to reach EUR 1bn by 2013
- 21% EBITDA margin
- 15% EBITAS margin
- Capex/Sales below 6%
The timing of the proposed dividend will be decided by the company's Board of Directors on the 6th of June, 2011. Record and payment dates will be communicated accordingly.
- Net profit before minorities and hybrid
- Free Cash Flow = net cash flow provided by operating activities less net cash used in investing activities, excluding acquisition payments, but including interest payments and hybrid dividend payments
- EBITAS = Earnings before Interest, Tax and Amortization of Intangible Assets related to acquisitions and impairment of goodwill and non-cash accounting charge for stock options
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Notes for the editor:
Eurofins - a global leader in bio-analysis
Eurofins Scientific is a life sciences company operating internationally to provide a comprehensive range of analytical testing services to clients from a wide range of industries including the pharmaceutical, food and environmental sectors.
With about 9,500 staff in more than 150 laboratories across 30 countries, Eurofins offers a portfolio of over 100,000 reliable analytical methods for evaluating the authenticity, origin, safety, identity, composition and purity of biological substances and products. The Group is committed to providing its customers with high quality services, accurate results in time and, if requested, expert advice by its highly qualified staff.
The Eurofins Group is the world leader in food, environment and pharmaceutical product testing and ranks among the top three global providers of central laboratory and genomic services. It intends to pursue its dynamic growth strategy and expand 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 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 demands of regulatory authorities around the world. The shares of Eurofins Scientific are listed on the NYSE Euronext Paris Stock Exchange (ISIN FR0000038259, Reuters EUFI.PA, Bloomberg ERF FP).
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's 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 data available to the Company as of the date of publication, but no guarantee can be made as to their validity