Solid Q1 with sales well ahead of cons driven by a very strong quarter in molecular, also underpinned by impressive BIOFIRE/SPOTFIRE placements which imply notable growth to continue in FY2025/26. FY25 outlook reiterated as strong placements and Q1 beat may be offset by tariff impacts, along with a EUR7.5m higher assumption on FX headwind (c1% impact on FY25 cEBIT). We don''t expect material changes to consensus, but await on further clarity on the group''s tariff impact, applicable for c10% of their sales (including total US imported sales and China imported sales from the US).
On tariffs, the group remains relatively defensive but not immune, with 85% of their US sales manufactured locally, and their main exposure being through the 15% of finished goods which are imported into the US and some imports of Chinese and EU raw materials and components. Also, the group has some exposure from China''s tariffs on US imports for c80% of their sales in the region which come from microbiology, with China accounting for c5% of group sales (i.e. c4% of group sales could be impacted). Despite the expected impact (we estimate it could total mid-teens of EBIT assuming no workarounds/tariff surcharges), the company remains confident with the guidance given underlying business strength.
The group also noted that the patent infringement lawsuit with QIAGEN on latent TB testing was disparaged. Good news for Biomerieux, less so for QIAGEN as it could cast doubt on the strength of the IP ahead of Roche''s entry in the latent TB space.
Q1 sales 3% above consensus on a CER basis
BIM delivered Q1 sales of EUR1098m (12.7% organic), 3% above consensus (EUR1055m, 9.9% organic). Growth in the quarter was driven by a very strong quarter for BIOFIRE and SPOTFIRE, slightly offset by a weaker quarter in microbiology and immunoassay.
. Molecular Biology +24.7% organic (EUR522m), 15% above consensus. Respiratory panels saw strongest growth at +21%, with non-respiratory at +11%....
