BioMérieux Net Income Rises 4.7% in First Half 2019

The Tip Desk · June 30, 2019 · 2 min read

The diagnostics company grew its contributory operating income to 198 million euros while expanding its molecular diagnostic footprint.

BioMérieux reported a net income attributable to the group of 141 million euros for the first half of 2019, a 4.7% increase from 134 million euros in the same period of 2018. The diagnostics maker saw its contributory current operating income reach 198 million euros, representing growth of 6.7% year over year.

Growth was driven largely by the BIOFIRE FILMARRAY range, which saw sales increase 31% in the second quarter. The company said this trajectory was supported by the development of its installed base and all panels. International deployment for the range accelerated during the quarter, with sales outside the United States accounting for approximately 19% of total range sales.

Research and development expenses rose to 179 million euros, or 14% of revenue, compared to 156 million euros, or 13.4% of revenue, in the first half of 2018. The company attributed this 8% increase at constant exchange rates and perimeter to the maintenance of microbiology research and intensified activities related to the BIOFIRE FILMARRAY range. Commercial expenses and general overheads reached 354 million euros, or 27.8% of revenue, which the company linked to reinforced commercial efforts for BIOFIRE FILMARRAY.

Regional performance varied, with the Asia Pacific region showing a strong trajectory. Sales in that region reached 239 million euros for the semester, an increase of more than 11%. This was supported by the development of the BIOFIRE FILMARRAY range and growth in microbiology in China, India, and Southeast Asian countries. In Europe, Middle East, and Africa, semester sales rose 1.8% to 455 million euros.

The company expanded its molecular diagnostic capabilities through two primary investments. It acquired Invisible Sentinel Inc for 66.4 million euros in cash to complement its GENE-UP food quality control solution. Additionally, BioMérieux increased its stake in Suzhou Hybiome Biomedical Engineering Co. Ltd from 54% to 67% through a 23.7 million euro transaction in June 2019.

Net debt rose to 422 million euros as of June 30, 2019, compared to 366 million euros on December 31, 2018, when adjusted for IFRS 16. This debt is primarily composed of a 300 million euro bond issued in October 2013 with a 2.875% annual coupon, and 96.4 million euros in new lease obligations related to IFRS 16. The company also paid a dividend of 41.3 million euros to shareholders.

BioMérieux maintains its growth and profitability objectives based on first-half results. The company expects current market conditions and currencies to contribute favorably to revenue growth reported in euros, while remaining neutral on profitability.