“Our mission at Eurofins is Testing for Life. Never is this more true than today, as we put our full energy and commitment towards supporting the fight against this global pandemic. We are a community of people including scientists and entrepreneurs, who are banded together to provide excellence in scientific innovation and service. As the world faces the challenges of COVID-19, at Eurofins we are ever mindful of our vision and the race to bring all of our resources to bear on the saving of lives during this crisis. We are pleased to have the opportunity to contribute on many fronts to the world’s fight against COVID-19. Our innovations in testing give healthcare providers additional options in evaluating their patients during this terrible outbreak. Our scientists are working with passion to support their clients in the Biopharma industry developing therapies and vaccines against COVID-19 in record time. Our teams are supporting epidemiologists with new solutions to trace the disease. Others are setting up processes for validating new sources of personal protection equipment or medical devices or working to secure the continued supply of critical infrastructure and essential services such as continued safe drinking water, essential pharmaceutical products, medical devices and important chemical products and the safe food, beverages and agricultural products sold on supermarket shelves, among many others.
Eurofins management is also closely monitoring the direct impact that the slower economic activity is having or may have on its operations. Most of the Group’s companies had a solid start to the year despite the significant disruptions caused by the COVID-19 pandemic, demonstrating the very resilient and non-cyclical nature of most of the markets we are exposed to. Nonetheless, the Group rapidly responded by taking significant actions to conserve cash and mitigate the potential impact of a prolonged economic downturn on our profitability and cash generation.
We remain very confident and excited about the company’s long-term prospects given the attractive markets we serve, our industry-leading position and proven growth strategy.
We are humbled and honoured to support patients and those healthcare professionals who are working tirelessly to care for those in greatest need due to the challenges of COVID-19.
We would like to extend our heartfelt sympathy for those impacted by the virus, and gratitude for the selfless healthcare heroes at the front lines of this terrible pandemic. We are in awe of your sacrifices and compassion and are motivated and honoured to rise up to this challenge to provide support to you and your patients, with the ongoing goal of making a positive contribution.
I also want to thank and recognise all Eurofins colleagues who are driving through this challenge. We are working diligently to keep their health and safety at the forefront of all we do. Without them, this would not be possible.”
|
EURm (unless otherwise stated) |
Q1 2019 reported revenues |
1,067 |
+ Q1 2019 acquisitions - revenue part not consolidated in Q1 2019 at Q1 2019 FX rates |
23 |
- Q1 2019 revenues of discontinued activities / disposals5 |
-7 |
= Q1 2019 pro-forma revenues (at Q1 2019 FX rates) |
1,083 |
+ Q1 2020 FX impact on Q1 2019 pro-forma revenues |
11 |
= Q1 2019 pro-forma revenues (at Q1 2020 FX rates) (a) |
1,094 |
Q1 2020 organic scope* revenues (at Q1 2020 FX rates) (b) |
1,139 |
Q1 2020 organic growth rate (b/a-1) |
4.1% |
Q1 2020 acquisitions - revenue part consolidated in Q1 2020 at Q1 2020 FX rates |
0 |
Q1 2020 revenues of discontinued activities / disposals5 |
3 |
Q1 2020 reported revenues |
1,142 |
* Organic scope consists of all companies that were part of the Group as at 01/01/2020. This corresponds to the 2019 pro-forma scope. |
(EUR m) |
Q1 2020 |
As % of total |
Q1 2019 |
As % of total |
Growth % |
Europe |
624.0 |
54.6% |
595.5 |
55.8% |
4.8% |
North America |
423.4 |
37.1% |
384.6 |
36.0% |
10.1% |
Rest of the World |
94.6 |
8.3% |
87.4 |
8.2% |
8.3% |
Total |
1,142.0 |
100.0% |
1,067.5 |
100.0% |
7.0% |
By geography, Eurofins’ organic growth for Q1 2020 was 2.0% in Europe, 7.1% in North America and 4.6% in the Rest of the World, reflecting the different timings of COVID-19 disruptions across geographies (early in Q1 for China, early March in Europe and late March in North America).
Within Europe, the COVID-19 impact on Q1 2020 organic growth was felt differently across countries. In France and the British Isles (UK and Ireland) Q1 2020 organic growth was slightly negative, in Germany organic growth was slightly positive, in the Nordics it was mid to high single digit whilst in the Benelux organic growth was double digit. Overall, BioPharma services in Europe remained very strong, growing double digit organically, partly driven by a strong performance in France. Clinical diagnostics had a mixed performance between European countries in line with the timing of the involvement of private laboratories in COVID-19 testing by local public authorities.
In North America, where organic growth was very strong overall in Q1 2020, both BioPharma services and Clinical Diagnostics grew double digit organically whilst Food testing organic growth was mid to high single digit. The Environment testing business continued its growth and margin improvement trajectory.
In the Rest of the World, the COVID-19 impact on Q1 2020 organic growth was also felt differently across countries with double digit organic growth in Japan and Taiwan and mid-to-high single digit organic growth in Australia and India. Brazil and New Zealand were relatively stable whilst China recorded a double digit decline.
Eurofins is supporting the global response against the Coronavirus pandemic
Eurofins has developed one of the most comprehensive offerings to help healthcare authorities respond to the COVID-19 crisis. The Group has been leveraging all of its technical capabilities across its global laboratory network, including its biopharma services laboratories, to support current and future SARS-CoV-2 testing needs and to continue to explore innovative solutions to further increase the capacity and the range of testing options available.
Offering RT-PCR clinical testing services for the qualitative detection of SARS-CoV-2
At the beginning of March, Eurofins started to offer stand-alone real time reverse transcriptase polymerase chain reaction (RT-PCR) tests for the qualitative detection of SARS-CoV-2 in Germany and from 10 March 2020 in the U.S.A. Eurofins has since received authorisations and validations for its RT-PCR Laboratory-Developed Tests (LDTs) for SARS-CoV-2 from a number of healthcare authorities, including Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA) in the U.S. and validation from the National Reference Center in France.
At the same time, in the U.S.A., Eurofins also began offering SARS-CoV-2 testing as part of Diatherix’ newly updated Target Enriched Multiplex PCR (TEM-PCR) Respiratory Viral Panels as well as a remote sample collection service to support care for kidney transplant recipients during the COVID-19 outbreak.
Eurofins is now able to offer the SARS-CoV-2 PCR assay across 23 laboratories in 9 countries (the U.S., Germany, France, Spain, the Netherlands, Brazil, Belgium, Italy and the U.A.E.). Eurofins is also working with the healthcare authorities in the UK, Ireland and India to set up testing capabilities in those countries over the coming weeks. Eurofins is ramping up its testing capacity for this solution from around 10,000 tests per day in late March to reach 100,000 tests per day from mid-May 2020.
To be able to ramp up capacity quickly in the face of increasing global demand and tightening supply chain issues, Eurofins is leveraging its strategic relationships with its suppliers as well as its internal capabilities including Eurofins Genomics’ six oligonucleotides production sites in the U.S.A., Europe, India and Japan which produce probes, primers and positive controls, key components for RT-PCR testing of SARS-CoV-2.
Offering clinical testing services and testing kits for serology-based antibody detection by ELISA in patients that have been exposed to COVID-19
At the start of April, Eurofins started to offer COVID-19 antibody clinical testing services. Serology can be used to complement the PCR swab testing that detects the virus to help diagnose acute infections status and its evolution. It can help estimate the timing of infection. As knowledge develops about the immunity to potential reinfection of patients having previously contracted COVID-19 and recovered, antibodies testing may provide information about statistically reduced contagion risks of and from these persons. Eurofins is now able to offer the COVID-19 antibody testing across 13 laboratories in 7 countries (the U.S.A., France, Germany, Spain, Ireland, the UK and the U.A.E.). Eurofins is also working with healthcare authorities in the Netherlands and Belgium to set up testing capabilities in those countries during the month of May 2020. The Eurofins network had capacity to process around 5,000 serology tests per day at launch and intends to increase its capacity to 100,000 tests per day by mid-May 2020.
On 09 April 2020, Eurofins launched a range of testing kits for serology-based antibody detection by ELISA of patients that have been exposed to COVID-19. Through the Group’s four factories and partners, Eurofins will be ramping up its capacity to produce kits to carry out over 10 million tests per month by the end of May 2020 to be used by government and private laboratories worldwide on most open ELISA testing systems.
Launching a number of solutions to support the research for therapeutics against COVID-19
As the world strives to combat the COVID-19 pandemic, BioPharmaceutical, Government, and non-profit organisations are working diligently to identify new or existing drug modalities that potentially can be used to treat COVID-19 affected populations. Eurofins’ scientific expertise and breadth of testing capabilities places the company at the forefront in supporting its clients’ mission to accelerate COVID-19 drug and vaccine development and put an end to this crisis.
Eurofins Genomics supports scientists from all areas in their essential work by providing them with the right tools to facilitate genomic research on SARS-CoV-2. Detailed knowledge of SARS-CoV-2 and its characteristics is instrumental in order to identify fast and viable solutions to the COVID-19 pandemic. For instance, Eurofins Genomics has launched a series of SARS-CoV-2 plasmid DNA controls that can be used to verify the presence of the SARS-CoV-2 virus. They are intended to be used for both research and development and in vitro diagnostic (IVD) applications. It has also recently launched its “SARS-CoV-2 Full-length Genome Sequencing” service, a new next generation sequencing (NGS) service enabling end-to-end surveillance of the coronavirus genome sequence and mutational drift. This can be key for epidemiology and tracing of outbreaks.
Eurofins Discovery, whose mission is to support Pharmaceutical and Biotech companies in their efforts to accelerate drug discovery research and development, is providing expert support in identifying and assessing potential drug targets by leveraging its worldwide presence, depth of scientific experience, and breadth of assays and services.
Eurofins BioPharma Product Testing delivers vital COVID-19 testing for all drug modalities and supply chains and has partnered with the world’s most innovative Bio/Pharmaceutical firms to advance timely therapies to patients in need. Eurofins BioPharma Product Testing’s scientific expertise and breadth of testing capabilities places the company at the forefront in supporting clients’ mission to accelerate COVID-19 drug and vaccine development including Antivirals, Vaccines, mAbs, Antibodies, RNA and Testing Kits with a concentration on Raw Materials, Microbiology, Viral, Cell & Molecular and Product Testing; Stability and Release Testing/Method Development; Medical Device Testing/ Method Development; and Cell Banking.
Through its worldwide presence, depth of scientific experience, and breadth of studies, tests and services, Eurofins Medical Device Testing is providing expert support and testing services for medical devices employed in the fight against COVID-19.
Leveraging its position as global leader in Testing for Life
In March, Eurofins launched testing solutions for the detection of SARS-CoV-2 on environmental surfaces and Eurofins’ laboratories in the U.S.A., South America, Europe and Asia Pacific are currently rolling out this service offering to their customers. The same month, Eurofins also launched a global service offering for testing, inspection and regulatory services focused on medical face masks, gloves and gowns, respiratory protective devices and equipment, its materials and components, as well as disinfectants and hand sanitizers, to serve the increasing demand caused by the severe coronavirus pandemic. Eurofins strives to be the one-stop solution provider for its clients supplying Personal Protective Equipment (PPE) and Medical Devices to the healthcare sector worldwide.
Links to all press releases published to date on the COVID-19 pandemic can be found below. You may also visit https://www.eurofins.com/covid-19-response/ for more information.
1Organic 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 (of year Y) but excluding discontinued operations5.
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 01 January Y-1. All revenues from businesses acquired since 01 January Y are excluded from the calculation.
2Adjusted - reflects the ongoing performance of the mature4 and recurring activities excluding “separately disclosed items3”.
3Separately disclosed items - includes one-off costs from integration, reorganisation, discontinued operations5 and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, share-based payment charge6, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income) and the related tax effects.
4Mature scope: excludes start-ups and acquisitions in significant restructuring. A business will generally be considered mature when: i) The Group’s systems, structure and processes have been deployed; ii) It has been audited, accredited and qualified and used by the relevant regulatory bodies and the targeted client base; iii) It no longer requires above-average annual capital expenditures, exceptional restructuring or abnormally large costs with respect to current revenues for deploying new Group IT systems. The list of entities classified as mature is reviewed at the beginning of each year and is relevant for the whole year.
5Discontinued activities / disposals: discontinued operations are a component of the Group’s core business or product lines that have been disposed of, or liquidated; or a specific business unit or a branch of a business unit that has been shut down or terminated, and is reported separately from continued operations. Disposals correspond to the sale by Eurofins of business assets to a third party. For more information, please refer to Note 3.18 of the Consolidated Financial Statements for the year ended 31 December 2019.
6Share-based payment charge and acquisition-related expenses, net – Share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, loss/gain on disposal, negative goodwill and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions.