bioMérieux: Solid organic growth in Q2 but some questions remain
NEUTRAL, Fair Value EUR66 (-11%)
bioMérieux released this morning Q2 sales that were above estimates at EUR395m notably with organic growth at 4% vs 2.7% expected by the consensus. Emerging markets (29% of sales) rebounded pretty strongly in Q2 with double-digit growth at 14% driven by China and India. Following a weak Q1 (-2.1%), industrial applications were up 11% in Q2 driven by a global rebound. Despite an undisputable rebound in Q2 we raise a couple of points: 1/Microbiology (50% of sales) is growing at a slower pace than previous years with 1.5% organic growth (vs 4.5% in 2012) and 2/Margins should be under pressure with production costs, SG&A and R&D expenses both set to show increases. FY guidance is maintained between 3% and 5% but we still see some pressure to reach the low with 2.1% growth in H1. bioMérieux also mentioned that Henri Thomasson, CFO, will leave the company and be replaced by Claire Giraut, former CFO of Ipsen.
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