Guerbet (GBT) H2 2024 earnings summary

Executive summary

• Full-year 2024 revenue reached €849m, up 9.0% at constant exchange rates and like-for-like, with strong growth in Americas (+20.5%), Asia (+10.1%), and EMEA excluding France (+8.8%).

• Diagnostic Imaging accounted for 88% of sales, Interventional 12%, and Digital & AI launched first sales.

• Profitability exceeded guidance, with restated EBITDA margin at 14.9% of sales, driven by cost control and improved product mix.

• French regulatory reform led to an 11.8% revenue contraction in France but improved gross margin.

• Net income declined to €13.5m, mainly due to higher interest expenses and FX losses.

Financial highlights

• Reported sales reached €841.1m, up 7.1% despite a €12.3m negative FX impact, mainly from LATAM and Asian currencies.

• Restated EBITDA rose 22.1% to €125.4m (14.9% margin), while operating income increased 28.2% to €49.6m.

• Net income margin was 1.6% in 2024, down from 2.8% in 2023.

• Free cash flow improved to -€9.1m from -€65.4m, with significant progress in working capital management.

• Net debt/EBITDA ratio improved from 3.4 to 2.9 by year-end.

Outlook and guidance

• 2025 revenue growth expected between 3% and 5% at constant exchange rates and like-for-like, with H1 flat or declining and H2 showing sustained growth.

• Restated EBITDA margin targeted above 15% and positive free cash flow anticipated.

• First quarter 2025 revenue expected to decline ~10%, with stabilization in H1 and acceleration in H2.

• Key growth drivers include MRI market share gains, double-digit growth in Interventional Imaging, and ramp-up of Digital & AI solutions.