Eurofins Scientific (ERF) Corporate presentation summary

Vision and strategy

• Focused on positively impacting life, health, and the environment through advanced testing services across food, environment, clinical, and pharmaceutical sectors.

• Operates over 950 laboratories in 60 countries, with more than 65,000 staff and 450 million tests performed annually.

• Maintains global leadership in key markets, leveraging a unique digital 'hub and spoke' laboratory network for efficiency and scale.

• Committed to sustainability, ESG, and innovation, with a strong track record of value creation and margin expansion.

Market position and growth drivers

• Holds #1 or #2 positions in most business lines, including food, environment, biopharma, and clinical diagnostics.

• Market growth is driven by increasing regulation, globalisation, outsourcing, and demand for quality and safety.

• High barriers to entry due to investment needs, network effects, and client switching costs.

• Organic growth in core business consistently outperforms industry peers.

Financial performance and capital allocation

• FY 2024 revenues rose 6.7% to €6,951m, with adjusted EBITDA up 14% and net profit up 32% to €405m.

• Free cash flow to the firm (FCFF) increased 69% to €801m, with improved cash conversion and lower net working capital intensity.

• Disciplined capex and M&A strategy, with 31 acquisitions in 2024 and continued investment in owned sites and digitalisation.

• Financial leverage reduced to 1.9x, within the target range, and strong credit profile maintained.