EUROFINS €112
Gain to date: 60%
Original entry point: Buy at €69.99, 23 December 2020 SHARES IN WORLD-LEADING laboratory testing and environmental certification business Eurofins Scientific climbed more than 10% on the day of its recent interim results. As well as posting record numbers – revenue was up a staggering 40% to €3.3 billion and earnings before interest, taxes, depreciation and amortisation were up 104% to £1 billion, meaning a margin of 30.3% compared with 21% last year – the firm substantially raised its full year guidance. Full year revenue expectations were increased by 13% to €6.15 billion while EBITDA guidance was increased by 36% to €1.7 billion due to the proliferation of new Covid variants. However, even these figures look conservative and there
is a strong possibility that revenue and profit could blow away these forecasts, leading to more upgrades for 2022 and beyond. ‘It appears that the pandemic will drive increasing demand for Eurofins’ services for many years to come’ commented chief executive Dr Gilles Martin. Meanwhile, the core operations performed well with new product launches in areas such as clinical diagnostics and transplants contributing to overall growth in the first half. 120 110 100
EUROFINS SCIENTIFIC
90 80 70 60
2020
2021
SHARES SAYS: This is a quality business with high barriers to entry, growing faster than expected. We are still buyers. [IC]
DESIGNED TO PERFORM ACTIVELY MANAGED TRUSTED FOR OVER 35 YEARS
DISCOVER AGT AT WWW.AVIGLOBAL.CO.UK Past performance should not be seen as an indication of future performance. The value of your investment may go down as well as up and you may not get back the full amount invested. Issued by Asset Value Investors Ltd who are authorised and regulated by the Financial Conduct Authority.