28/02/2007 07:14
Eurofins Scientific Group: Eurofins reports 40% net profit growth with its Annual Results 2006
INFORMATION REGLEMENTEE

Eurofins Scientific Group / Final Results

28.02.2007

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Revenue growth of 58% in 2006 to EUR368.0m. Revenues have doubled since
2004
- Substantial strengthening of the technological portfolio as more
laboratories than expected joined the Group
- Operating profit better than expected for the year at EUR37.3m
- EPS grows 40% from EUR0.91 to EUR1.27
- Increase in ROE from 20.9% to 23.5%
- Sales objective for 2007 raised from EUR420m to EUR450m

This has been a year of exceptionally strong growth at Eurofins. Important
acquisitions have played a major role in the increase in revenues to
EUR368.0m from EUR233.1m in 2005 (58% growth). This significantly exceeds the
EUR345m revenue objective which was upgraded for the third time in the Q3
2006 report. These acquisitions have enabled the Company to add breadth and
a depth of excellence to its service range around the world which should
contribute increasingly to profitability as the process of integration
progresses. The number of acquisitions during the year was more than was
anticipated at the start of 2006 but the Company believed that in each case
they fitted into the long-term strategy of Eurofins and that the price
makes value creation possible.

During the year the following major businesses were acquired:
Pharmacontrol, Optimed, GAB Biotechnologie, Agrisearch, Focus BioInova,
Steins Food, Alcontrol France and Chemical Control. In addition the Group
set up a subsidiary in Italy (which subsequently purchased Chemical
Control), opened a new 1,100m2 facility in Brazil, achieved approval as a
wholly-foreign-owned enterprise in China and started building its Michigan
site for the VIRalliance virus phenotyping business. Finally, MWG AG was
fully consolidated from the third quarter following the increase in the
stake that Eurofins holds in the company to over 80%.

This year's revenue growth has resulted in a doubling of the consolidated
sales since 2004. Organic growth was in line with Company targets at around
10%. Quarterly sales increased throughout the year by around 50% but the
fourth quarter exceeded expectations even more and grew 73% from EUR70.8m in
2005 to EUR122.2m. This puts the Company firmly on target to meet its medium
term objective of revenues of EUR600m in 2010.

In terms of profitability, EBITDA and Operating profit both grew to record
levels at EUR57.0m (2005 EUR42.5m) and EUR37.3m (2005 EUR29.7m) respectively. Basic
earnings per share for the Group increased from EUR0.91 to EUR1.27. Net profit
doubled in Q4 as compared to the same period last year.

In the Q3 report for the first time the performance of the operationally
'up to standards' and the 'under development' parts of the business were
reported. Taking note of the favourable response to this disclosure, these
two perimeters are again highlighted:
- The 'up to standards' perimeter attained revenues of EUR273m and an EBITA
margin of 15.3%. This margin is above expectations set for 2006 due to
one-off food scares. The Company still sees its margin objective for this
perimeter as being 15% in the medium term.
- The 'under development' perimeter's revenues were EUR95m with losses of
EUR4.3m. For this part of the business, it is worth noting that full-year
proforma losses would have been about EUR12m on proforma sales of EUR131m.
Going forward it is planned to report the performance of these two
perimeters once a year.

The Group worked hard in the final quarter to address its net working
capital position and reduced this to 5.8% of revenues (7.3% in 2005). Net
debt at the year end was EUR119.6m (2005 EUR60.2m), including a closing cash
balance of EUR80.4m (2005 EUR41.2m). The Group generated operating cash flow of
EUR43.6m (2005 EUR34.7m) during the year.

It is Eurofins' objective to generate shareholder value by seeking high
returns on increasingly large amounts of capital. In 2005 and 2006 Eurofins
deployed EUR151m additional capital to start up or acquire businesses with
the objective of reaching Group ROCE targets on these new investments
within three years. Understandably, the relative size of these recent
investments (Eurofins has doubled in size since 2004) has had a negative
effect on the overall rate of ROCE*. In 2006 ROCE* before tax was 17.6%
(2005 22.3%) and ROCE* excluding all intangibles related to acquisitions
was 40.9% (2005 45.6%).Return on Equity** improved to 23.5% (2005 20.9%).

Outlook for 2007
Proforma sales for 2006 reached EUR411m. Based on an ambitious objective of
about 10% organic growth in 2007, Eurofins raises its sales objectives for
this year from EUR420m to EUR450m (assuming constant exchange rates).
Approximately EUR150m corresponds to the 'under development' perimeter. The
objective is to bring this 'under development' perimeter to Group standards
within 3 years and close to break even in 2007, including any start up
costs.

During 2006 and continuing into 2007 Eurofins has invested in the
corporate, IT and business development structures that will enable it to
maintain its fast-track expansion. Group costs, which rose to EUR6.2m in 2006
(2005 EUR4.1m), will reach approximately EUR10m when the management structure
is fully established.

In 2007 Eurofins will continue in its aim to be the number one or number
two service provider in each market in which it operates. In the core
countries this means continuing to provide the high quality of testing and
advice that customers need and to invest in the productivity and efficiency
of the laboratories. In newer markets, through further investment in plant,
equipment and personnel and by providing tests at the highest of standards
internationally the Group plans to extend its status as a preferred
supplier to many of the world's largest companies.

* ROCE = EBITA over last 12 months / average capital employed at start of
last 4 quarters
** ROE = Net profit / Equity at beginning of year





DGAP 28.02.2007
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Language: English
Issuer: Eurofins Scientific Group
Chaussée de Malines 455
B-1950 Kraainem Belgien
Phone: +32 (2) 766 16-20
Fax: +32 (2) 766 16-39
E-mail: ir@eurofins.com
WWW: www.eurofins.com
ISIN: FR0000038259
WKN: 910251
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Düsseldorf

End of News DGAP News-Service

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Eurofins Scientific Group / Final Results

28.02.2007

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------

- Revenue growth of 58% in 2006 to EUR368.0m. Revenues have doubled since
2004
- Substantial strengthening of the technological portfolio as more
laboratories than expected joined the Group
- Operating profit better than expected for the year at EUR37.3m
- EPS grows 40% from EUR0.91 to EUR1.27
- Increase in ROE from 20.9% to 23.5%
- Sales objective for 2007 raised from EUR420m to EUR450m

This has been a year of exceptionally strong growth at Eurofins. Important
acquisitions have played a major role in the increase in revenues to
EUR368.0m from EUR233.1m in 2005 (58% growth). This significantly exceeds the
EUR345m revenue objective which was upgraded for the third time in the Q3
2006 report. These acquisitions have enabled the Company to add breadth and
a depth of excellence to its service range around the world which should
contribute increasingly to profitability as the process of integration
progresses. The number of acquisitions during the year was more than was
anticipated at the start of 2006 but the Company believed that in each case
they fitted into the long-term strategy of Eurofins and that the price
makes value creation possible.

During the year the following major businesses were acquired:
Pharmacontrol, Optimed, GAB Biotechnologie, Agrisearch, Focus BioInova,
Steins Food, Alcontrol France and Chemical Control. In addition the Group
set up a subsidiary in Italy (which subsequently purchased Chemical
Control), opened a new 1,100m2 facility in Brazil, achieved approval as a
wholly-foreign-owned enterprise in China and started building its Michigan
site for the VIRalliance virus phenotyping business. Finally, MWG AG was
fully consolidated from the third quarter following the increase in the
stake that Eurofins holds in the company to over 80%.

This year's revenue growth has resulted in a doubling of the consolidated
sales since 2004. Organic growth was in line with Company targets at around
10%. Quarterly sales increased throughout the year by around 50% but the
fourth quarter exceeded expectations even more and grew 73% from EUR70.8m in
2005 to EUR122.2m. This puts the Company firmly on target to meet its medium
term objective of revenues of EUR600m in 2010.

In terms of profitability, EBITDA and Operating profit both grew to record
levels at EUR57.0m (2005 EUR42.5m) and EUR37.3m (2005 EUR29.7m) respectively. Basic
earnings per share for the Group increased from EUR0.91 to EUR1.27. Net profit
doubled in Q4 as compared to the same period last year.

In the Q3 report for the first time the performance of the operationally
'up to standards' and the 'under development' parts of the business were
reported. Taking note of the favourable response to this disclosure, these
two perimeters are again highlighted:
- The 'up to standards' perimeter attained revenues of EUR273m and an EBITA
margin of 15.3%. This margin is above expectations set for 2006 due to
one-off food scares. The Company still sees its margin objective for this
perimeter as being 15% in the medium term.
- The 'under development' perimeter's revenues were EUR95m with losses of
EUR4.3m. For this part of the business, it is worth noting that full-year
proforma losses would have been about EUR12m on proforma sales of EUR131m.
Going forward it is planned to report the performance of these two
perimeters once a year.

The Group worked hard in the final quarter to address its net working
capital position and reduced this to 5.8% of revenues (7.3% in 2005). Net
debt at the year end was EUR119.6m (2005 EUR60.2m), including a closing cash
balance of EUR80.4m (2005 EUR41.2m). The Group generated operating cash flow of
EUR43.6m (2005 EUR34.7m) during the year.

It is Eurofins' objective to generate shareholder value by seeking high
returns on increasingly large amounts of capital. In 2005 and 2006 Eurofins
deployed EUR151m additional capital to start up or acquire businesses with
the objective of reaching Group ROCE targets on these new investments
within three years. Understandably, the relative size of these recent
investments (Eurofins has doubled in size since 2004) has had a negative
effect on the overall rate of ROCE*. In 2006 ROCE* before tax was 17.6%
(2005 22.3%) and ROCE* excluding all intangibles related to acquisitions
was 40.9% (2005 45.6%).Return on Equity** improved to 23.5% (2005 20.9%).

Outlook for 2007
Proforma sales for 2006 reached EUR411m. Based on an ambitious objective of
about 10% organic growth in 2007, Eurofins raises its sales objectives for
this year from EUR420m to EUR450m (assuming constant exchange rates).
Approximately EUR150m corresponds to the 'under development' perimeter. The
objective is to bring this 'under development' perimeter to Group standards
within 3 years and close to break even in 2007, including any start up
costs.

During 2006 and continuing into 2007 Eurofins has invested in the
corporate, IT and business development structures that will enable it to
maintain its fast-track expansion. Group costs, which rose to EUR6.2m in 2006
(2005 EUR4.1m), will reach approximately EUR10m when the management structure
is fully established.

In 2007 Eurofins will continue in its aim to be the number one or number
two service provider in each market in which it operates. In the core
countries this means continuing to provide the high quality of testing and
advice that customers need and to invest in the productivity and efficiency
of the laboratories. In newer markets, through further investment in plant,
equipment and personnel and by providing tests at the highest of standards
internationally the Group plans to extend its status as a preferred
supplier to many of the world's largest companies.

* ROCE = EBITA over last 12 months / average capital employed at start of
last 4 quarters
** ROE = Net profit / Equity at beginning of year





DGAP 28.02.2007
---------------------------------------------------------------------------

Language: English
Issuer: Eurofins Scientific Group
Chaussée de Malines 455
B-1950 Kraainem Belgien
Phone: +32 (2) 766 16-20
Fax: +32 (2) 766 16-39
E-mail: ir@eurofins.com
WWW: www.eurofins.com
ISIN: FR0000038259
WKN: 910251
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Düsseldorf

End of News DGAP News-Service

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