SYNLAB AG SYNLAB
Q1'24 RESULTS
8 May 2024
EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Disclaimer
This document does not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities in any jurisdiction.
Statements made in this document may include forward-looking statements. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believes", "expects", "expected", "may", "will", "would", "should", "seeks", "pro forma", "anticipates", "intends", "plans", "estimates", "estimated", or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy or intentions. These statements are not guarantees of future actions or performance and involve risks, uncertainties and assumptions as to future events that may not prove to be accurate. Actual actions or results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and SYNLAB undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It should be noted that past performance is not a guide to future performance. Interim results are not necessarily indicative of full-year results.
Certain data included in this document are "non-IFRS" measures. These non-IFRS measures may not be comparable to similarly titled financial measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with International Financial Reporting Standards or any other generally accepted accounting principles. Although SYNLAB believes these non-IFRS financial measures provide useful information to users in measuring the financial performance and condition of its business, users are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included in this document.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
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EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Agenda
- Q1'24 Highlights
- Q1'24 Financial highlights
- Q1'24 Business review
- Outlook
- Appendix
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Q1'24 HIGHLIGHTS
Mathieu Floreani, CEO
EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Q1'24 key highlights
Strong Q1'24 financials | Unchanged FY'24 guidance |
Ongoing portfolio management to | |
+5.2% organic growth (working days adjusted) | ~€2.7bn revenue (on current perimeter) |
improve performance | |
18.0% Adjusted EBITDA margin | 17-18% AEBITDA margin |
€45m unlevered FCF | €50-100mM&A spend |
Strong Q1 '24 performance
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EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Q1'24 highlights - implementation of strategy continues
Organic growth
Base business +5.2% growth (working days adjusted)
-
ForYou Growth Initiative continued
Retail initiative progressing - Customer satisfaction stable at excellent NPS 88,
- (>250k individual feedbacks in Q1 2024)
B2B initiative progressing
- CRM roll-out and Sales Effectiveness programme ongoing
M&A
1 small bolt on acquisition in Q1'24 in Czech Republic
Launched Strategy 2.0
Operational excellence
- SALIX delivering €8m savings across all regions
- Portfolio management & STS activities across the value chain (BCP & lab footprint)
- Focus on increased logistics efficiency in several markets
- Procurement and Technical Service now globally organized
- IT LIS harmonization ongoing in France and Germany
- Synnovis: Hub Setup and successful go live on 2nd of April
Medical & ESG
Medical
- Launch of MyEDIT-B in France
- Ongoing training and development e.g. internal seminar on anatomic
pathology in Q1
ESG
- Preparation towards EU Corporate Sustainability Reporting Directive: Updated Double Materiality Assessment kicked off
- Cont. strong ESG rating performance: MSCI: A; ISS ESG: Prime
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Q1'24 FINANCIAL HIGHLIGHTS
Sami Badarani, CFO
Strong Q1'24 revenue
Revenue (in €m)
Pro-forma1
677
Reported702
EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Organic
+26 | +1 | 0 | ||||||
682 | ||||||||
(22) | +3.9% growth2 | +0% growth | ||||||
€3m revenue | ||||||||
Price: +0.7% | South: €4m | |||||||
Volume: +3.2% | North & East: €(3)m | +1% Proforma | ||||||
682 | ||||||||
(3)% reported |
Q1'23 | COVID-19 | Underlying | FX | '24 Acquisitions | Q1'24 |
Underlying organic growth at 5.2% adjusted for Working days (Easter in March vs April)
81) Pro-forma for acquisitions and disposals: additional revenue as if acquisitions had been consolidated on 1 January of respective years, and as if disposals had been sold at the same time in the previous year; 2) On a base excluding COVID-19 testing
EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Q1'24 AEBITDA margin within FY'24 guidance (17-18%)
AEBITDA (in €m)
Pro-forma1
119
Reported
+5 | 0 | ||
• | Price €5m | (1) | |
(299) | |||
• | Inflation 1.7% : €(9)m | ||
119 | - PEX inflation ~3% | 123 | |
- OPEX deflation (1)% |
- SALIX +€8m
438
Q1' 23 | Organic | FX | M&A | Q1' 24 |
123
16.9% | Reported AEBITDA margin | 18.0% |
Q1 '24 AEBITDA margin improving vs last year
91) Pro-forma for acquisitions and disposals: additional revenue as if acquisitions had been consolidated on 1 January of respective years, and as if disposals had been sold at the same time in the previous year
Q1'24 P&L summary
Q1 ' 24 | ||||
Adjusted | ||||
(in €m) | Reported | Adj. | Adjusted | |
vs. LY | ||||
EBITDA | 122.9 | 0.2 | 123.1 | 4.6 |
D&A - impairment | (68.9) | 10.7 | (58.3) | (0.3) |
Operating profit | 53.9 | 10.9 | 64.8 | 4.3 |
Net finance results | (17.2) | - | (17.2) | 3.3 |
Income tax expense | (11.0) | (2.8) | (13.9) | 0.8 |
Other | (0.7) | - | (0.7) | (0.5) |
Net Profit | 25.0 | 8.1 | 33.1 | 8.1 |
Adjusted EPS *) | 0.15 € | |||
EUROPE'S NUMBER ONE
MEDICAL DIAGNOSTICS PROVIDER
Mostly acquisition-related adjustments €11m customer list amortisation
Net interest ~€1m, net hedge gain ~€6m, net FX €(5)m 27% adjusted effective tax rate
Strong Adjusted Net Profit in Q1 '24
10 | *) Based on 220,787,467 (diluted) weighted average number of shares outstanding |
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Synlab AG published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 17:06:02 UTC.
