Biomerieux: Molecular biology boosts Biomérieux’s revenues, which raises its 2024 targets

(BFM Bourse) – The in vitro diagnostics specialist has raised its growth and profitability targets for the 2024 financial year after recording a jump in its contributory current operating profit over the first six months of the year.

Satisfactory first half of the year for Biomérieux. The in vitro analysis laboratory used by analysis laboratories and hospitals (particularly for infectious diseases) delivered a “cannon first half in terms of sales growth”, notes Invest Securities.

Over the first six months of 2024, Biomérieux recorded like-for-like growth of 9.9%, to €1.9 billion, and 10.1% in the second quarter alone. The group benefited from the good momentum of its two largest divisions, namely molecular biology (detection of genetic sequences, DNA or RNA of a microorganism) and microbiology (cultivation of biological samples to identify bacteria), which grew by 17.5% and 8.7% respectively in like-for-like data over the half-year.

TP ICAP Midcap notes, in molecular biology, that sales of non-respiratory panels of the “Biofire” range increased by 19% in the second quarter, which illustrates the good execution of the group’s cross-selling.

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Significant exchange rate effects

Invest Securities, for its part, highlights the good performance of microbiology in the second quarter (+8.2% in comparable data), despite a demanding basis of comparison, since this activity had increased by 17.9% in the second quarter of 2023.

Outside of the business, Biomérieux increased its main profitability indicator, the contribution to recurring operating income (ROCC), by 5% in published data to 306 million euros, while the corresponding margin went from 16.5% to 16.1%. However, these variations include an extremely unfavorable exchange rate effect of approximately 44 million euros. Restating this impact and the changes in scope, the ROCC improved by 20% in comparable data over one year while the margin improved by 1.55 percentage points. Net profit increased by 33.2% to 215 million euros.

At the end of this good first half, Biomérieux raised its main objectives for 2024, namely sales growth of 8% to 10% on a like-for-like basis (compared to 6% to 8% previously) and ROCC growth of 12% to 17% on a like-for-like basis, compared to at least 10% previously.

“We expect a positive reaction. The stock has changed little over the past year. The stock has maintained its qualities (innovation and visibility, captive business, cash generation, good execution, etc.). The publication should act as a positive catalyst,” writes Oddo BHF in a note published before the market opened. The research firm notes in passing that the company is one of the rare groups to have raised its outlook during this half-year results season.

On the Paris Stock Exchange, Biomérieux shares took off and gained 4% around 10:20 a.m.

Two weeks ago, UBS bank began its monitoring of the stock with a buy recommendation, praising Biomérieux’s capacity as well as the promising prospects of “Spotfire”, a system that the company launched in 2023 to strengthen its offering in the molecular diagnosis of infections.

Julien Marion – ©2024 BFM Bourse