(News Bulletin 247) – The in vitro diagnostics specialist has published robust 2023 accounts in line with its expectations. Biomérieux expects its results to increase this year. But today’s publication does not satisfy the market.

Delivering a good overall copy is no longer enough to satisfy the market. Every little detail of a publication is closely scrutinized by investors who no longer hesitate to sanction the slightest grain of sand.

This is the case this Thursday with the in vitro diagnostic specialist Biomérieux. And yet, the Lyon-based group has exceeded expectations in 2023 thanks to robust accounts for the past year.

Over the whole of 2023, Biomérieux’s turnover increased by 2.4% in published data to 3.68 billion euros. On a comparable basis, growth amounts to 6.6%, a figure which is higher than the expectations of the company which was counting on growth in its sales of between 4% and 6% excluding exchange rate and scope effects.

Biomérieux attributes this better-than-expected growth to “an excellent performance in sales of Biofire’s microbiology and non-respiratory panels and a lower than expected decline in sales of Biofire’s respiratory panels.”

“Over the year, molecular biology increased by 3% on a comparable basis. The group can be pleased with the remarkable resistance of this franchise thanks to the continued expansion of its installed base (+600 instruments, installed base of 25,400), the launch of Spotfire (+400 instruments in the fourth quarter) and an effective cross-selling strategy (cross and additional selling, editor’s note) of the panels”, appreciates Invest Securities.

“Industrial applications (+11% in published data compared to 9% in comparable data expected in the fourth quarter) outperformed slightly. The division benefited from price increases above 6% reflecting the solid positioning of the portfolio,” continues Invest Securities.

“BioMérieux’s 2023 achievement is solid, reflecting good performances on non-respiratory panels and in microbiology in particular,” appreciates Sarah Thirion, equity strategist at TP ICAP Midcap.

A crumbly ROC

A little further down in the accounts, the contributing current operating income (ROC) increased by 2% over one year at constant exchange rates and scope, to 610 million euros. A performance which proves to be in line with the objectives of the company which envisaged a contributory ROC of between 600 and 630 million euros. In published data, the ROC contracted to 8.2% over one year, penalized by unfavorable exchange rate effects “more negative than expected”, recalls TP ICAP Midcap to 55 million euros, compared to 40 million euros advanced by Biomérieux.

The corresponding margin fell significantly to 16.6% compared to a rate of 18.5% a year earlier, with the company citing a normalization of activity after the peak induced by the Covid-19 pandemic. However, it came out above the expectations of the company which was targeting a margin of between 16% and 16.5%.

Finally, the net result came out below expectations, at 358 million euros compared to 398 million euros expected by Invest Securities, mainly due to a higher tax rate, at 26.2% in 2023 compared to 24, 1% in 2022, and a depreciation linked to the acquisition of Hybiome, a Chinese company specializing in immunoassays whose activity has “not restarted at the expected level after Covid in a very competitive local market”.

2024 objectives “online”

Biomérieux accompanied this annual publication of its roadmap for 2024, which appears to be “in line” with the expectations of Invest Securities. Excluding currency and scope effects, the company expects sales growth of between 6% and 8%.

The company also expects growth in contributed operating profit of at least 10% at constant exchange rates, an objective which is based on stable gross margin and “rigorous management of operational expenses”. This should lead “to an improvement in the operating margin of at least 50 basis points (0.5%, Editor’s note) at constant exchange rate,” adds Biomérieux. A negative impact of currency effects of around 50 million euros is also expected by the company in 2024 compared to 2023.

“The 2024 objectives confirm sustained organic growth and an improvement in operating profit before non-recurring items at constant exchange rates,” assesses TP ICAP Midcap.

“In view of the aforementioned elements, we assumed a turnover growth of 6%, a current operating profit of 621 million euros, i.e. a current operating margin of 16%, down 60 basis points (compared to 16 .8% before exchange rate effects) for 2024”, continues the financial intermediary.

TP ICAP Midcap, for its part, lowered its advice to “hold” and its price target to 103 euros, citing exchange rate effects which will limit “operating leverage”.

On the Paris Stock Exchange, the Biomérieux share lost 2.8% to 97.66 euros around 11:55 a.m., showing the second largest drop in the SBF 120, behind the GTT share, weighed down by Engie which is recording its exit from the specialist’s capital. cryogenic membranes.